This Hyderabad Incubator Aims To Be Global Y Combinator for AI Startups

Telangana-based start-up incubator T-Hub is scaling up its AI incubation initiatives in collaboration with the Machine Learning and AI Tech Hub (MATH). It plans to position Hyderabad as a global hub for AI innovation by attracting international players and fostering cutting-edge start-ups. MATH is focused on becoming the AI-focused equivalent of Silicon Valley’s Y Combinator—a premier accelerator and venture capital powerhouse—by offering world-class mentorship, funding opportunities and a robust ecosystem for AI ventures worldwide. 

MATH CEO Rahul Paith told Outlook Business that the incubator is working closely with 90 AI enterprises at its 50,000 sq. ft. facility in Hyderabad. Additionally, it claims to be working with a network of 900 AI start-ups from across the globe, in line with its mission to establish Hyderabad as a global hub for AI innovation. 

$650,000 GPU Credits for AI Start-Ups 

Unlike traditional incubators that focus on direct funding, this initiative prioritises comprehensive support for start-ups. “We are not giving out cash, but the services we provide represent significant financial value. We have distributed over $650,000 worth of GPU cloud credits to start-ups.” Rahul said. The incubator provides cloud credits ranging from $5,000 to $2,50,000, access to advanced General Processing Units (GPUs), and to vital market connections with investors.  

He also added that 550 AI professionals across India and globally have come under one roof in Hyderabad at MATH and a few of them have also shifted base or built one in the capital city. Naavi Network, an AI based edtech company and Neuralix, a start-up providing AI solutions for energy, manufacturing, and defence sectors, are among the start-ups to have shifted base to India, to work with MATH.  

He emphasised that Bengaluru-based start-ups are also showing interest in shifting to Hyderabad. MATH has collaborated with over five start-ups from India’s Silicon Valley and claims that it has yielded significant gains, including refining business models for better market positioning, optimising infrastructure costs through strategic resource allocation and connecting start-ups with corporate partners to facilitate proof-of-concept (POC) development and secure market opportunities. These innovation-driven newbies have delivered several breakthroughs in fields like AI, healthcare, and fintech. 

AI Focused Innovation in Healthcare 

According to Rahul, a significant portion of the incubator’s efforts is focused on healthcare, a key sector for AI innovation, with the potential to disrupt the US healthcare market, valued at over a trillion dollars. This focus has attracted considerable interest from investors. Nearly 50% of these start-ups report generating revenue from international markets, particularly the US. and Europe.  

The initiative is also bridging the gap between start-ups and government procurement opportunities. With recently relaxed eligibility criteria for government contracts, start-ups are encouraged to tackle complex challenges faced by various government entities. “Our role as an intermediary ensures that start-ups meet the specific needs of government bodies, fostering sustainable partnerships,” he said. 

Expansion Plans 

The incubator has expanded its outreach beyond Telangana to major Indian cities such as Bangalore, Mumbai, and Delhi. This growth strategy aims to tap into larger talent pools and enhance the diversity of the start-up ecosystem.  

“Our focus is not limited to Telangana; we aim to create a nationwide impact. Engaging with start-ups in other cities enables us to build a stronger, more connected network,” Rahul added. 

As it scales, the incubator seeks to establish itself as a central hub for AI innovation in India, aligning with global best practices and fostering an environment that attracts tech talent from across the globe. With growing interest from government bodies and support from industry leaders like NVIDIA, AWS, Google, and Microsoft, the initiative expects to become a key driver of technological advancement and economic growth in India. 

MATH AI Fund on the Way 

While MATH is still not offering direct funding to associated start-ups, Rahul added that they are actively working to establish an AI-focused fund to support start-ups. “In the initial phase, the goal is to consolidate existing AI-related funding opportunities from the central government to create a comprehensive pool, ensuring that the state can maximise the benefits from these resources,” he said. 

Looking ahead, by 2025, MATH plans to launch its own dedicated AI fund. This fund will not rely solely on government contributions but will also reinvest revenues generated by the organisation. It also intends to collaborate with VCs and other private investors to further bolster the fund, creating a robust financial resource to support AI start-ups.