With 38 startup unicorns – world wide web very first or world wide web-only firms valued at $1 billion or more in the private market place – active in India such as 12 new ones, which had been added in 2020, the nation is the third greatest hub of such hallowed one particular-horned startups globally. In truth, India has been enjoying that position for the previous handful of years now surpassing the United Kingdom. However, it has a pretty extended way to go to be even in the vicinity of the second spot. The Indian unicorn base remains more than six occasions smaller sized than that of the United States with 243 unicorns and almost six occasions smaller sized than that of China with 227 unicorns even as the latter may possibly knock the US off the top rated spot in the coming handful of years.
According to the information sourced from a current Nasscom-Zinnov startup 2020 report, the US was the biggest unicorn hub followed by China and India with the typical time taken by organizations to hit unicorn status getting 5-seven years in the US, six-eight years in China, and seven-eight years in India. While the Indian startup ecosystem is nonetheless in its infancy, evolving more than the previous 10-12 years, the ecosystems of the US and China have been in improvement more than the previous numerous decades with more mature innovation and technologies bases. However, in terms of new additions in 2020, India added the second larger quantity of unicorns in 2020 with 58 per cent B2B additions just after 66 unicorns added to the US tally though China added only eight. In the list of top rated unicorn hubs, the UK, Germany, and South Korea had 24, 12, and 11 unicorns respectively in 2020.
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There are more than 55 prospective unicorns in the pipeline in India though there could be more than 50 unicorns general in India in 2021. “Despite lower investments than 2019 – India has added most Unicorns in a calendar year, ever. More importantly, many start-ups are already servicing global markets, with 60% being B2B – which is yet another record,” the report stated.
Investors had place 21.3 per cent much less threat capital in 2020 vis-a-vis the preceding year in startups amid Covid. Over $11.4 billion funding, down from $14.5 billion in 2019, was produced in 2020, according to the information shared by Tracxn. However, the fall in annual deal volume or the quantity of rounds was much less extreme as startups participated in 1,152 funding rounds in 2020 vis-à-vis 1,185 in 2019. The investments in 2020 had been led by $800 million raised by Byju’s followed by $700 million secured by Walmart’s PhonePe, and $660 million invested in Zomato across numerous rounds.