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As of August 29, 2022, India had emerged as the world’s third largest startup ecosystem adding to the emerging industry of unicorn startups in India, with over 77,000 DPIIT-recognized startups spread across 656 districts. Among middle-income nations, India ranks second in terms of innovation, scientific publication, and university quality. India’s innovation is not limited to a few industries. Different startups have emerged in 56 different industrial sectors, including 13% from IT services, 9% from healthcare and life sciences, 7% from education, 5% from professional and commercial services, 5% from agriculture, and 5% from food and beverages. Learn more about the Unicorn Start-ups In India
In the year 2021, the fast-growing unicorn sphere inside the Indian startup ecosystem has seen unparalleled expansion. We’ve also seen an average of three unicorn start-ups appear per month in 2021. According to NASSCOM, the startup ecosystem has already welcomed 28 new unicorns through the third quarter of 2021.
India has 107 unicorns with a combined valuation of $ 340.79 billion as of September 7, 2022. In 2021, 44 unicorns with a total valuation of $ 93.00 Bn were created, while 21 unicorns with a total valuation of $ 26.99 Bn were built in 2022.
What is a unicorn startup?
A unicorn is a word commonly used in the venture capital business to describe a privately held startup company with a valuation of $1 billion.
What started the unicorn trend in 2021?
During the pandemic working from home boosted the growth of digital enterprises in India, and it also gave way to a long unicorn list. A strong digital payments environment, a massive smartphone user base, and digital-first business models have mostly attracted investors.
Smartphone penetration and digitization of commerce in all aspects of life have expanded exponentially throughout the pandemic. Tech companies that have become household names are contributing to India’s unicorn boom. Aside from FinTech, e-commerce, SaaS, and marketplace firms are the most important contributors to the unicorn ecosystem.
Features of unicorn startup
Running a startup is not without difficulties. A startup becomes a unicorn over time by maintaining a consistent focus on the company’s vision and fighting against all the hurdles. Although each unicorn startup is unique in terms of its concept and business plan, there are several characteristics that they consistently share.
These are some examples-
Many unicorn firms’ fundamental business model is based on technology. Paytm, for example, began by making it easier for individuals to pay for restricted necessities, such as mobile and DTH recharges. The company has evolved into a comprehensive payment platform with payment products for both consumers and companies.
Pioneers in their niche
Many firms have earned the rank of ‘unicorn’ by entering a previously unknown or untargeted market. Being the pioneers in a certain industry has given them an advantage over the competitors in ensuring constant corporate growth.
However, things are changing as firms that are not pioneers are also approaching or exceeding the unicorn threshold.
Consumers benefit from innovation
With the power of constant innovation, the majority of unicorn businesses in India have caused disruption in the industries they operate in. Oyo rooms, for example, have transformed the way people book lodging when traveling.
In India, privately held firms have a better chance of becoming a unicorn. It is due to the company’s valuation rising when it receives investment from established investors, both Indian and international.
Begin with growth-oriented MVPs.
A unicorn starts by creating a Minimum Viable Product (MVP) based on its vision, then tests, changes, and scales it frequently to achieve its goals.
Unicorn startups in India
Most Indian unicorns were born in the years 2021, 2020, and 2019, with 44, 11, and 7 unicorns born each year, respectively. COVID-19 has caused significant socioeconomic misery around the world, yet it is at this time that the resilient Indian entrepreneurs have worked tirelessly to not only contribute to the economy but also to COVID-19 relief efforts.
Geographically, Bengaluru is the core of India’s high-tech industry, and it is India’s unicorn capital, with the most unicorn headquarters, followed by Delhi (NCR) and Mumbai.
While we observe unicorns in Tier I cities, this ecosystem is not limited and is spreading all the way to the last district. Traditional sectors such as E-commerce, FinTech, Supply Chain & Logistics, and Internet Software & Services continue to dominate the arena, but a strong wave of unconventional sectors such as content, gaming, hospitality, data management & analytics, and so on are making inroads.
More than ten unicorns were expected to be born in 2020. ‘It’s raining unicorns,’ was the year 2021’s mantra, with 44 unicorns poured into the ecosystem and numerous ‘soonicorns’ waiting in line.
- A unicorn is a word used in the venture capital business to describe a privately held startup company. These businesses are valued at $1 billion and are quite successful in their work field.
- Working from home during the pandemic boosted the growth of digital enterprises in India. It also led to a long list of emerging unicorn companies. A strong digital payments environment, a massive smartphone user base, and digital-first business models have attracted new investors.
- Although each unicorn startup is unique in terms of concept and business model, there are a few features that they all have in common. Some are tech-based or begin with growth-oriented MVPs, while others are pioneers in their niche.
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Q1. Which is India’s first unicorn startup?
Ans- Inmobi was India’s first unicorn in 2011. Since then, there is a constant rise in unicorns, with India being home to 100 of the world’s estimated 1000 unicorns.
Q2. Is Zomato a unicorn?
Ans- The app for food delivery Zomato Ltd. was the country’s first unicorn to go public, raising $1.3 billion in funding from Morgan Stanley, Tiger Global, and Fidelity Investments.
Q3. Which is the latest unicorn in India?
Ans- Fractal, an AI and advanced analytics solutions business, became the first unicorn in 2022