
Hyderabad is becoming the preferred destination for spacetech startups, with founders from Bengaluru, Delhi NCR, Uttar Pradesh and Ahmedabad moving there to build ventures. The city offers a combination of engineering talent, aerospace and defence heritage, prototyping support, vendor networks, academic institutions, testing access, better urban infrastructure and lower operating costs, anchored by Telangana government institutions like T-Hub and T-Works. T-Hub alone has supported 105 spacetech startups, including 36 through three cohorts of its Orbit programme since 2024.

Companies such as Abyom SpaceTech and Defence, which moved from Uttar Pradesh, has conducted India’s first integrated reusable rocket engine qualification test at about one-tenth of typical investment. Spantrik, whose founders moved from Delhi and Ahmedabad, is developing a fully reusable rocket and has received about Rs 72 lakh in grants. XDLINX Space Labs is preparing for volume production from its Madhapur facility, while Sanyark Space, founded by former ISRO professionals, moved from Bengaluru and now employs about 35 people.
Hyderabad's rise as a spacetech hub builds on decades of defence and aerospace manufacturing from DRDO, HAL and ISRO suppliers already in the city. The Telangana government's active push through T-Hub and T-Works provides prototyping labs and grant access that early-stage hardware startups need. Bengaluru, while still ahead in total funding at $495 million compared to Hyderabad's $215 million, has become expensive and saturated for founders requiring affordable lab space and talent. The presence of Qualcomm, Nvidia and Samsung nearby creates a pipeline for embedded systems and telecom engineers. Watch whether Hyderabad's lower cost base helps it narrow the funding gap in the next 12 months.
Source: timesofindia.indiatimes.com
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