To be unveiled by Jayesh Ranjan, IAS, Special Chief Secretary, Government of Telangana, the report marks the beginning of a new city-focused spin-off from India’s largest congregation of soonicorns, the ET Soonicorns Summit. Now in its fourth edition, the summit extends its geographic footprint by turning the spotlight on undercelebrated innovation corridors, beginning with Hyderabad.
Why this report matters: A region defined by one city
While India’s startup narrative typically tilts towards Bengaluru, Mumbai, or Delhi-NCR (National Capital Region), a silent revolution has been brewing in Telangana’s capital. Between January 2020 and May 2025, Hyderabad alone accounted for over 2,500 startups, $2.1 billion in funding, and a staggering 99.7% of the region’s total startup capital. The city has emerged as a complete startup ecosystem—from seed-stage ventures to scalable soonicorns.
What makes this report unique is its expansive and ecosystem-first methodology that maps not just valuation but capital flows, sectoral density, investor behaviour, and ecosystem architecture. Unlike last year’s Soonicorn analysis, which was limited to private companies nearing unicorn status based solely on valuation and revenue, this year’s report takes a more holistic approach.
The report analyses startup formation, capital concentration, investor activity, and exit trends across Andhra Pradesh and Telangana using data sourced from Tracxn, one of India’s leading data intelligence platforms. The study spans January 1, 2020 to May 20, 2025, a five-year window that allows us to gauge both momentum and sectoral maturity.
Methodology: From capital maps to sectoral maturity
This isn’t your typical ranking list. Powered by Tracxn’s proprietary data, the report segments companies and sectors using a dual-priority framework:
- P0 sectors represent those with the highest number of active investors, indicating market maturity and validation.
- P1 sectors highlight those with high funding concentration despite a lower investor base, suggesting early conviction bets with outsized growth potential.
The report covers over 1500 companies across Andhra Pradesh and Telangana, spanning data from January 1, 2020, to May 20, 2025. Key metrics include:
- Number of startups founded
- Total capital raised
- Number of funding rounds
- Number of unique investors
- Count of Soonicorns (valued near or above $1 billion)
- Count of Minicorns (valued between $100 million and $500 million)
- City-wise capital flows and sectoral funding distribution
This multi-dimensional lens reveals not just where capital is going, but also why, and what this means for AP and Telangana’s long-term startup viability.
Healthcare Booking Platforms and HRTech dominate investor mindshare
In the P0 category, Healthcare Booking Platforms lead with $335.7 million in funding across just 20 rounds from 58 unique investors. That’s an average of $16.8 million per round—an astonishing figure that signals deep market confidence in scalable health-tech solutions.
Hot on its heels is HRTech, which drew $311.7 million across 40 rounds from 43 investors. Notably, 155 new HRTech companies were founded in the region during this period, reflecting sustained entrepreneurial interest in solving workforce management and upskilling challenges.
EdTech and E-Commerce power the startup engine
K-12 EdTech and Continued Learning together gave rise to over 370 startups, supported by over $97 million in funding and participation from more than 80 investors. This signals a competitive, vibrant, and still-nascent market.
Meanwhile, Online Grocery and Logistics Tech continue to anchor Hyderabad’s strong e-commerce backbone. With over $63 million in combined funding, these sectors demonstrate a reliable blend of demand-driven scale and operational tech sophistication.
EVs, Beauty Tech, and Alternative Lending lead the P1 frontier
While P0 sectors showcase the breadth of innovation emerging across India—ranging from agri-tech to assistive intelligence—P1 sectors reflect the depth of conviction driving sustained investment and strategic focus. These are the areas where founders, investors, and policymakers are placing their strongest bets, with sharper business models, deeper capital backing, and clearer policy alignment. The P1 distinction signals that these sectors are not just promising—they’re pivotal to India’s next big leap in the startup economy.
The Electric Vehicles (EV) sector leads the P1 cohort with 50 funding rounds, $134.2 million in capital, five minicorns, and two soonicorns—all backed by only 30 investors. This suggests considerable maturity and scale and a decent degree of strategic investment with significant backing from the likes of Hyderabad Angels and VenturEast.
However, Beauty Tech, with just 18 investors, still raised $260.4 million, driven largely by a mega round.* This translates to an average deal size of $16.3 million per funding round, making it the second highest across P0 and P1 cohorts and the highest in the P1 cohorts.
Alternative Lending secured $149.8 million from only 20 investors and produced two soonicorns.* This indicates a diverse and micro-focused fintech playbook with high-growth potential despite a lean investor base.
The rise of Deep Tech and NewSpace ambitions
The NewSpace sector, though still niche, brought in $125.8 million from just 14 investors. One soonicorn has already emerged in this vertical, showcasing Hyderabad and AP’s ambitions in India’s next frontier—private space tech.
The bigger picture: What this launch means for India’s startup cartography
The unveiling of this report at the ET Soonicorns Sundowner Hyderabad marks more than a data milestone. It represents a narrative shift. As Indian startups decentralise, understanding the true gravity centres beyond Bengaluru becomes critical.
This year’s ET Soonicorns Summit on 22 August 2025 in Bengaluru expands its focus with the launch of the ET Soonicorns Sundowner series. These intimate, city-specific gatherings aim to bring capital, policy, and founders together in India’s rising tech corridors.
First stop: Hyderabad. On July 31, expect sharp panels, closed-door huddles, and the region’s most data-rich startup report—all wrapped in one evening. And it all begins with the unveiling of this report by Jayesh Ranjan, IAS, setting the tone for India’s next wave of unicorn builders.
*As per the current inclusion criteria, only companies with revenue reported as of March 2023 or March 2024 have been considered.
360 One is the presenting partner of the ET Soonicorns Summit 2025.
(This article is generated and published by the ET Spotlight team. You can get in touch with them at etspotlight@timesinternet.in.)
