India, July 1 -- The first half of 2026 delivered a surprising twist to the typical stories about what cities startup investors favour.

Although the top startup hubs - Bengaluru, Delhi NCR and Mumbai - continued to maintain their lead in funding trends, investment activity significantly picked up beyond the aforementioned startup hubs.

As per Inc42's' Indian Tech Startup Funding Report, H1 2026, Hyderabad recorded the highest year-on-year surge in funds deployed during the half among India's top startup hubs.

Hyderabad-based startups raised over $226 Mn in the first six months of 2026, representing a 45% YoY increase in funding. Deal activity in Telangana's capital also surged by 83% YoY to 22 deals.

The uptick came primarily at the b...