Hyderabad's startups raised $226 million in the first half of 2026, a 45% increase on the same period last year, according to Inc42's Indian Tech Startup Funding Report for H1 2026. The number of deals grew faster still: 22 rounds, up 83% year on year.
What drove the jump
The largest single round was Skyroot Aerospace's $60 million raise at a $1.1 billion valuation, which made the Hyderabad spacetech company a unicorn. Inc42 also named Dhruva Space, Recykal and Liquidnitro Games among the Hyderabad startups that closed rounds in the period.
How Hyderabad compares
The city's growth stood out against a mixed national picture in the same report:
| City | H1 2026 funding | Change year on year | Deals |
|---|---|---|---|
| Bengaluru | $2.7 billion | +8% | 165 |
| Delhi NCR | $917 million | -39% | 134 |
| Mumbai | $587 million | -31% | 60 |
| Hyderabad | $226 million | +45% | 22 |
| Chennai | $87 million | +26% | 13 |
Hyderabad remains far smaller than Bengaluru in absolute terms, but it grew faster than every other major hub in the table. Inc42's report reads the shift as part of a wider trend: "There is an emerging trend of diversification of startup hubs. Data suggests that there are sector specific clusters getting created in each of these cities."
Why it matters for Telangana founders
Spacetech, climate and gaming all appear in the list of Hyderabad rounds, which supports the idea of a city building several specialist clusters rather than depending on one sector.