Hyderabad startups raised Rs 2,343 cr in 2020

From 2014-20, 136 startups raised Rs 10,950 cr in 196 deals

Hyderabad: Hyderabad-based startups between 2014 and 2020 have raised about $1.5 billion (about Rs 10,950 crore) from 196 deals. In all, 136 startups got the funding. The funding amount doubled to $ 321 million (Rs 2,343.3 crore) in 2020 from $ 160 million (Rs 1,168 crore), said Rathnakar Samavedam, Investment Director, Hyderabad Angels.

Participating in the Warangal Edition of The Angel Investor Masterclass, organised by Startup Telangana, Telangana State Innovation Cell and T-Hub, Samavedam said Hyderabad is emerging as a hub of startup activity and on an average 27 startups are getting funded annually.

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Angel investing, which varies from Rs five lakh to Rs two crore, is one of the important funding channels that promotes innovation and economic growth, he said adding that the angel investors take a high risk as they invest in early stage startups. “The risk is highest in seed stage funding. They invest only on the belief they have in the startup founders,” he explained.

On entrepreneurship trends, Samavedam said that most parents expect their children to find a job with a steady income. However, now parents are allowing their children to set up their own ventures and are even willing to be their first investors. There were about 300 angel investors in India in the early 2000 and now the number has reached about 10,000. This is small compared to the over 6.5 lakh angel investors in the USA, which reflects the corresponding high number of startups.

Ravi Puli, founder and chief executive officer, International Solutions Group (ISG), who hails from Warangal, said that angel investors should come forward to invest and foster local startups. “The best thing is to invest in an area that we know about. This will allow active participation in the growth of the startup,” he said.

On the strategies, he said different investors have different risk appetite. It is the same with their timing of investments. “I started when everybody was closing down. It all depends on how we look at things,” he said. However, if an investment turns successful over time, it will add to the social status of being associated with a successful company.

T-Hub chief executive officer Ravi Narayan also participated in the event. Several participants expressed willingness to consider investing in the startup ecosystem of Warangal.

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