Telangana Tech startup ecosystem ranks 7th among the top-funded states in India
FinTech BizNews Service
Mumbai, February 22, 2024: Tracxn, one of the world’s largest platforms for tracking startups and private companies, has come out with the state wise annual tech reports for Telangana, Maharashtra and Delhi NCR. The reports include insightful data into citywise trends, investments, exits and unicorns.
TRACXN GEO ANNUAL REPORT
Tracxn Insights
● Telangana Tech startup ecosystem ranks 7th among the top-funded states in India based on funding till date and has raised a total of $2.7B to date
○ In 2023, it ranks 9th in terms of funding with $99.2M raised and it is also the lowest funding the
region witnessed in the last 5 years
○ This funding is a drop of 78% compared to the funds raised in 2022. This drop in funding is
primarily due to global slowdown due to macroeconomic trends, geopolitical factors that lead to
a shift in investing habits
○ However, the state government has been active in encouraging startups in this region. To assist
its startup goals, the state government has been allowing the entry of numerous accelerator
programmes like Hyper Hub, inQ Innovation, T-hub, etc. Also, provides financial assistance under
T-Fund and T-SIRI initiatives to startups across rural and urban areas.
Telangana Tech space in 2023 saw total funding of $99.2M, 78% lower than the funds raised in 2022
and 81% lower than the funds raised in 2021
○ Seed stage rounds in 2023 saw funding of $14.1M, a 82% drop compared to $78.4M raised in
2022 and a 89% drop compared to $126M raised in 2021
○ Early-stage rounds in 2023 saw funding of $80.1M, a drop of 71% compared to $280M raised in
2022, and a decrease of 24% compared to $106M raised in 2021
○ Late-stage rounds in 2023 saw funding of $5M, a 95% drop compared to $101M raised in 2022
and an 98% drop compared to $286M raised in 2021
● In 2023, Telangana Tech has not witnessed any $100M+ rounds
○ Nxtwave is the highest funded company in this space that raised $33 million in its series A
funding round
Aerospace, Maritime & Defense Tech , EdTech and Enterprise Applications, were the top-funded
sectors in 2023
○ The Aerospace, Maritime & Defense Tech sector has raised a total funding of $35.8M, a drop of
38% in funding compared to 2022
■ Skyroot, a developer of the space-launch vehicle, raised $27M in Series B round in this space
○ EdTech sector in 2023 raised a total funding of $33M in 2023, which is an increase of 65% in total
funding compared to 2022
■ From this sector, NxtWave, an online platform offering IT courses for professionals, raising
the entire $33 million in its series A funding round
○ The Enterprise Applications in 2023 raised a total funding of $19.4M which is a drop of 91% in
funding compared to 2022
● The sector did not see any Unicorn companies emerging in 2023 however there was 1 unicorn
company in 2022
● The Telangana Tech space saw 2 acquisitions in 2023. Comparing it to 2022, there were 9 acquisitions,
which is a 77% drop as compared to 2023
● Hyderabad is a top funded city followed by Ranga Reddy in this space in 2023
● CIE IIITH, T-Hub and Indian Angel Network are the top investors in Telangana Tech landscape
○ We Founder Circle, Equanimity Investments, and Venture Catalysts were the most active
investors in the seed stage during 2023
○ Temasek was the top early-stage investor in 2023
