75% Companies in T-Hub off Their Targets

After a glorious 2015, the vibrant start-up ecosystem in Hyderabad seems to be going downhill. It is emerging that the investors have taken a cautious approach to the funding to the start-up companies. The state-owned T-Hub also decided to close its doors on over 150 start-ups that made their way into the state-run incubator only 11 months ago.

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While the officials are tight-lipped over this, sources have confirmed it. Earlier, the seats were filled on ‘first-come-first-serve basis’ without a proper review of the market viability and monetary potential of the products or ideas. The companies which managed to get in like that were struggling. T-Hub finally asked such companies to vacate.

Most of the companies comprise smaller teams of two or three members -that were becoming difficult to manage. T-Hub was one of the innovative ideas of Telangana government inaugurated November last year, start-ups at the T-Hub were given a period of 6 to 12 months to work on their ideas and scale them up. It is said that over 75% of the companies failed in achieving their target.

According to a start-up intelligence and market research platform, while the funding for tech start-ups in Hyderabad stood at $52.6 million in 2015. It is on a decline this year. About $22.7 million funding emerged into the start-ups in Hyderabad and with the addition of predicted funding – it includes deals and funding rounds that will be closed by the year-end, the number can not go beyond $27.2 million, ringing the alarm bells.