TG State Unveils Strategic Fund to Accelerate Startup Growth

The Telangana government is strengthening its startup ecosystem with the launch of a ₹1,000 crore “Fund of Funds,” Chief Minister A. Revanth Reddy announced. The announcement came during the inauguration of the Google for Startups Hub, a collaborative initiative between Google and the Telangana government. The state IT Minister, D Sridhar Babu, also attended the event.

Speaking at the launch, the Chief Minister said Hyderabad is being positioned not just as a startup hub but as a center for unicorns - startups valued at over $1 billion. The state government has set a target of nurturing at least 100 startups from Hyderabad to reach unicorn status.

Revanth emphasized that the partnership with Google and the ₹1,000 crore fund will provide startups with a strong support system. “Use this opportunity to grow into a global tech giant,” he urged, adding that Hyderabad-based startups should aim to become billion-dollar companies.

The Chief Minister also highlighted Telangana’s long-term economic vision, presented during the two-day Telangana Rising 2047 Global Summit. He said the state aims to become a $1 trillion economy by 2034 and a $3 trillion economy by 2047.

Revanth reminded the audience that global tech giants like Google, Apple, and Amazon started as small startups 15-20 years ago, offering inspiration to today’s entrepreneurs. He also noted that over the past 25 years, Hyderabad has successfully nurtured startups in software, pharma, and life sciences, many of which have grown into major companies.

Speaking at the inauguration of the “Google for Startups Hub” at T-Hub, IT Minister Sridhar Babu emphasized the government’s renewed commitment to strengthening Telangana’s innovation ecosystem. He made a significant announcement about setting up incubation centers in all government universities. The purpose behind this decision, he explained, is to nurture ideas, promote research-based entrepreneurship, and build institutions aligned with the standards of the Telangana AI Innovation Hub and the Life Sciences One Hub.

The minister highlighted that Telangana startups raised $571 million (approximately ₹4,700 crore) in 2024. He particularly noted the remarkable growth in the health-tech sector, reflecting the strength of state policies and the capabilities of local innovators. The rise of women-led startups in Hyderabad further strengthens this collective progress.

To empower emerging startups even further, a ₹1,000 crore ‘Fund of Funds’ will soon be operational. According to the minister, this initiative will provide strong financial support to young entrepreneurs, enabling them to develop impactful solutions for society.