HYDERABAD: India's startup state Telangana has featured among the top 100 emerging startup ecosystems globally, retaining its position in the 61-70 rank category but falling behind Chennai and Pune in the 10th edition of the Global Startup Ecosystem Report (GSER) 2022 that was released recently.
Last year, Hyderabad had featured on the rankings, scoring in the 61-70 ranks along with Mumbai, Pune and Chennai, but this year the city was replaced by Telangana, albeit in the same rank range as last year.
However, Telangana's startup ecosystem stood among the top 10 in the Global Ecosystem in Affordable Talent and Asian Ecosystem in Funding, while it featured in the top 15 in terms of the Global Ecosystem in Bang for Buck, as per the report.
While Telangana scored higher than Chennai and Pune in terms of funding and market reach, it lagged behind them in performance and talent & experience.
Telangana's IT sector records 13% growth rate in 2021
The state also scored higher than Mumbai and Delhi on funding and market reach but scored the same as Bengaluru in funding while scoring higher in market reach.
As per the report, Telangana saw a total early stage funding to the tune of $273 million in the H22019-2021 period as compared to the global average of $687 million, and its ecosystem value during the period stood at around $4.8 billion as against the global average of $28.6 billion.
By contrast, Bengaluru, which was the only Indian city in the top 30 last year and improved its rankings to 22nd spot this year, saw a total early stage funding of $2.1 billion during the same period and its ecosystem value was at $105 billion.
Bengaluru and Delhi were the two Indian cities to make it to the top 30 of GSER 2022, while Mumbai improved its rankings to make it to the top 40 at 36th rank, where it was tied with global hubs like Hangzhau, Melbourne, Montreal and Munich.
"Like Silicon Valley in the United States, Bangalore no longer is the only game in town. Six of seven Indian ecosystems tracked by GSER - including Chennai, Pune, Telangana, and Kerala - climbed the rankings, benefitting from a dispersion of the tech economy. Delhi and Mumbai re-joined Bangalore in the top 40. Overall Bengaluru, Mumbai, and Delhi went up almost 10 ranks each," the report said.
"Despite the Covid-19 pandemic, Telangana's IT sector recorded a 13% growth rate in 2021, compared with a national rate of 8%," the report added.
