The year 2022 has been a growth-inspiring time for the start-up ecosystem in Hyderabad. Within a span of 7 days, the ecosystem has seen one start-up become a unicorn, five start-ups raising funds, and another selling the stake to a top food aggregator platform. Given this growth trajectory, experts are quick to point out that Hyderabad is set to witness more unicorns – start-ups valued over $1billion -- in the coming years.
There are about six to seven start-ups on the brink of becoming unicorns, shares Jayesh Ranjan, principal secretary, IT and industries department. He adds that 2-3 firms have the capacity to turn unicorns this year itself.
A few days back, Hyderabad joined the unicorn list, with Darwinbox getting valued above $1billion. On the same day, two companies – Stanplus and OurFood announced their funding round. To add to all this, on Friday, Zomato announced that it will be buying a 19.48 percent stake in city-based ad-tech company Adonmo Inc for a total cash consideration of Rs 112 crore.
While there was a talk of investments not coming to Hyderabad and large investors unwilling to invest here, the funds raised within a span of few days shattered those myths, says Jayesh Ranjan. Another start-up that is working in the space tech sector, Skyroot Aerospace, announced fundraising of $4.5 million in a bridge round to Series B funding led by Google’s founding board member Ram Shriram’s Sherpalo Ventures.
Meanwhile, Smartron and Sustainkart also announced their funding. While Sustainkart, which is an e-marketplace for sustainable products, raised $5,00,000 in its pre-seed round led by India Accelerator. On the other hand, Smartron secured a $200 million capital commitment from Global Emerging Markets Group (GEM).
However, the big break will come when one of the start-ups will announce its IPO, says Ramesh Loganathan, professor Co-Innovation, IIIT-Hyderabad. That’s when 50-100 people will rush to set up business in Hyderabad, and there will be a flush of investors, he says.