Tech Startups In TG Raise $571 Mn Funds In 2024

Hyderabad: The tech startup ecosystem in Telangana is the eighth highest-funded startup ecosystem in the country, with an overall funding of more than $3.45 billion, till date. The year 2024 has become the highest-funded year with tech startups raising a total funding of $571 million in the State, wherein Hyderabad has led the overall funding, according to a report.

Tech startups have witnessed a growth of 160 per cent in funding, from $571 million raised in 2024, compared to $219.9 million in 2023. H1 2024 (January - June) was the highest-funded half of the year, witnessing a growth of 451 per cent, from $484 million equity funding, compared to $87.7 raised in H1 2023, an annual report - Telangana Tech Annual Report 2024, released by Tracxn, a global SaaS-based market intelligence platform, said.

The report further mentioned that HealthTech, FinTech, and Enterprise Applications were the top funded sectors in Telangana’s tech ecosystem. The HealthTech sector attracted a total funding of $300 million in 2024, a growth of 2139 per cent, compared to $13.4 million raised in 2023. This growth was witnessed majorly due to the funds raised by Apollo 24|7, contributing to 99 per cent of the funds raised in this sector. Apollo 24|7 raised $297 million private equity in 2024.

The FinTech sector witnessed a total funding of $105 million in 2024, a growth of 91 per cent compared to $55 million in 2023. The State did not get to see any new Unicorn in the tech space for the year 2024 and 2023. Two tech startups, BikeWo and HRHNext, went public in 2024, compared to one company going public in 2023. The top investors in the State were T-Hub, Indian Angel Network, and Mumbai Angels.

According to Tracxn, the tech startups in the State witnessed this growth due to various initiatives implemented by the government. One of the initiative includes a dedicated Trade and Economic Partnership Agreement (TEPA) that attracts investments from European Free Trade Association (EFTA) countries. This agreement is likely to bring in investments of nearly €100 billion over the next 15 years.