#1: How IIMA Ventures, T-Hub changed the scene for startups and incubators in India?
Indian startup ecosystem of 90k+ companies is transforming the landscape of innovation with an annual funding surge reaching $14.44 billion in 2024.
Indian startup ecosystem of 90k+ companies is transforming the landscape of innovation with an annual funding surge reaching $14.44 billion in 2024.
This is not a dream, but the vibrant reality, in which India's tech incubator institutions like T-Hub in Hyderabad and CIIE in Ahmedabad play pivotal roles in nurturing this growth.
And today’s Bharatnama deep-dive is all about decoding the impact of these incubators in building the new Indian economy.
See, the journey began in the late 1990s when the Indian government, recognizing the potential of technology-driven entrepreneurship, started laying the groundwork for what would become one of the most dynamic startup ecosystems globally.
Initially, incubators were few and far between, with the first significant push coming from academic institutions like the Indian Institutes of Technology (IITs) and the Indian Institutes of Management (IIMs).
In 2002, the Centre for Innovation Incubation and Entrepreneurship (CIIE) was established at IIM Ahmedabad with support from the Government of India and Gujarat.
This was not just an incubator but a beacon for aspiring entrepreneurs, providing mentorship, funding, and a platform for networking.
By 2007, CIIE had already incubated over 50 startups, setting a precedent for others to follow.
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As the 2010s rolled in, the impact of CIIE was already much visible.
Thus, the narrative intensified with the launch of T-Hub in Hyderabad in 2015. It was the brain-child of who is now the Andhra Pradesh CM - N Chandrababu Naidu.
Spearheaded by a unique triple helix model involving the government, academia, and the private sector, T-Hub became India's largest incubation centre.
And, it was not just about space. T-Hub brought together resources, industry connections, and a vision to make Hyderabad a global innovation hub.
By 2022, T-Hub had facilitated over 2k startups, with ambitions to impact another 20k in the next five years.
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These incubators didn't just grow in numbers but in impact.
T-Hub, for instance, has been instrumental in attracting significant investments into Telangana, with its reputation leading to a substantial inflow of funds into the startup ecosystem.
Their model included corporate innovation programs, academic partnerships, and international collaborations, such as one with US-based Redberri to establish a global outpost in North America.
Meanwhile, as T-Hub grew so strong and big, IIM A’s CIIE evolved into IIMA Ventures, focusing on a complete innovation continuum from incubation to acceleration and investment.
And, by 2023, IIMA Ventures had mentored over 7k founders and invested in numerous startups, some of which have seen exits through acquisitions or IPOs.
This shows not only the growth of startups but also the maturation of the support system around them.
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And, the scale of these operations can be best understood by comparing them with global counterparts.
In the US, incubators like Y Combinator have been pivotal, but India's model, especially through T-Hub and CIIE, shows a unique blend of government backing, academic collaboration, and private sector involvement.
While Y Combinator has a broader, more international portfolio, T-Hub and CIIE focus deeply on local innovation, aiming to solve India-specific problems which can then scale globally.
Anyhow, the present state of these incubators is marked by their expansion and specialization. For instance, in a bid to replicate T-Hub’s success and impact at a deeper level, it has launched Mini T-Hubs to extend its reach beyond Hyderabad, aiming to decentralize innovation across India.
And if those mini T-Hubs score good outcomes, they could become a major model for all states of India.
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Challenges, however, persist.
One major hurdle is the talent pool.
Both T-Hub and CIIE emphasize the need for continuous learning and upskilling to keep pace with global tech trends.
Another challenge is the funding landscape. While there's growth, the quantum of investment per startup in India is still lower compared to its Western counterparts, leading to a need for more substantial seed and growth-stage funding.
And much of this money has to come from Indian sources, the family offices, corporate VCs, and most importantly the insurance and pension funds, just as the case is in the West or in China.
After all, you can beat the foreign players, with foreign money.
In fact, almost all of them come to invest in Indian startups which are building something that will cater to the Indian population.
Also, geopolitically, India's tech incubators face issues like data sovereignty and the push towards self-reliance in tech, especially in light of global tech wars where data and technology have become battlegrounds.
Thus, looking towards the future, the outlook is promising yet cautious.
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And see, overall, these incubators are not just about creating startups but about building ecosystems that can sustain innovation over decades.
The global impact of these incubators is evident in how they're shaping narratives around tech in emerging markets. They're proving that innovation can be democratized, not just concentrated in Silicon Valley or Beijing's tech corridors.
By fostering startups that address both local and global needs, these incubators are setting a precedent for how other developing nations might approach tech entrepreneurship.
And with India aiming to be a $5 trillion economy, tech incubators like T-Hub and CIIE are not just participants but architects of this growth story, turning vision into viable, impactful tech ventures.
Stay tuned, as we bring you more of such niche chapters from BharatNama in the days ahead, tracking the rise of India, one small bit at a time :)
Best,
Sumedh, building EMotorad
Taking made-in-India e-cycles to every country in the world, from Pune with love
Sharing insights from the entrepreneurial journey on LinkedIn
Jayant, building Biz News+
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