Why hyderabad startups are failing to get funding through FFs Schemes
Why Hyderabad startups are getting overshadowed by FFS — how to fix it.
Even though Hyderabad is a tech-savvy state, significant financing sources like Fund of Funds Startups (FFS) always ignore its startups. Hyderabad startups are missing out on funding specifically from FFS, India’s Fund of Funds for Startups.
It’s not because there aren’t enough talented people; it’s because of low online visibility.
Other states do progress on forward currently. Bridge the disparity now. Investments occur with a firm digital footing then.
Why is it happening, and how can it be stopped?
The Truth Behind the Numbers
- Hyderabad has far fewer FFS‑backed with Rs 600 crores in funding for 37 startups.
- This figure is lower in comparison to top-performing states. With Rs 7,348 crore in funding for 396 startups backed, Karnataka leads.
- In addition to Delhi with Rs 3,689 crore alongside Maharashtra with Rs 5,606 crore.
- India’s Lok Sabha data states 1,282 startups located all over India got funding. The funding that was secured via AIFs amounts to Rs 23,679 crore.
Why Visibility Matters?
- Investors can’t see startups that don’t have an active digital presence.
- Even good early-stages startups might be ignored if they don’t have well-maintained websites, digital storytelling, or social proof.
Visibility=Credibility=Funding
- Digital exposure isn’t simply a way to promote; it’s also a show of trust, preparedness, and seriousness.
- These are essential things for AIFs and VCs to think about when they choose firms for FFS investment.
Why Are Hyderabad Startups Falling Behind on FFS Funding?
- Thin ecosystem and poor visibility: Founders and experts say that not having a web presence makes it harder for investors to find you and decreases your reputation.
- Lack of transparency and bias: Application problems and the idea that Bengaluru/Noida is favored over other regions make it hard to have a fair chance.
Visibility: The Key to Getting Investors for Your Startup
How Digital Presence Influences Funding Success
- AIF managers and VCs usually only look at businesses that have updated websites, active social media accounts, thought leadership material, and media attention.
- Having a strong internet presence is seen as a way to filter out businesses that aren’t credible, which makes it more likely that a company will meet quality standards and get financing.
Hyderabad startups needs to get that online visibility
- Visibility in the public eye (via articles, interviews, and internet mentions).
- A consistent brand story and proof of traction.
Ealkay Digital: Your Visibility Partner for Funding Success
- Ealkay Digital assists startups in establishing the essential visibility groundwork needed to be prepared for funding.
- Launching professional, high-visibility websites that are optimized for SEO and achieve strong rankings.
- Enhancing social media visibility, maintaining consistent thought leadership, securing news mentions, and showcasing case studies.
Outcomes:
- For Skyshade, we enhanced brand visibility, resulting in increased social engagement and strong lead conversion. Additionally, it produced a steady income.
- Investor Equity secured, national expansion achieved
Through the establishment of credibility and visibility, we assist Hyderabad startups in gaining recognition from FFS-linked AIFs and various VC networks.
Conclusion
Hyderabad startups face a funding visibility gap—but it can be fixed. By investing in digital brand building and partnering with Ealkay Digital, startups can significantly improve their chances of FFS grants and VC engagement.
Ready to be funding-ready? Reach out to Ealkay Digital and let us help you build the visibility that gets you noticed.
FAQs
1. What is India’s Fund of Funds for Startups (FFS) and how does it work?
FFS is a government initiative managed by SIDBI that channels money into VC/AIF funds, which in turn invest in eligible startups across India.
2. Why do Hyderabad startups fail to attract funding under the FFS scheme compared to Bengaluru, Delhi, or Maharashtra?
Hyderabad startups get less FFS funding due to investor concentration in hubs like Bengaluru and Delhi, along with lower digital visibility.
3. How does digital visibility and online presence impact a startup’s eligibility or chances of securing FFS funding?
Strong online presence builds credibility and attracts investors, while weak visibility makes startups less likely to be shortlisted for FFS funding.
4. What steps can Hyderabad startups take to improve their chances of receiving FFS and VC funding?
They should strengthen digital branding, showcase traction, engage with investors, and prepare clear financial and pitch documents.
5. Are there hidden biases or systemic challenges in how FFS funds are allocated to startups across India?
Yes — startups in Tier-1 hubs benefit more, while Hyderabad faces regional bias and weaker investor ecosystems under the FFS scheme.
