Unicorn venture capitalism is known as the industry of tech start-ups that reach a total market value of over a billion dollars. The term Unicorn was introduced by Aileen Lee to specify this class of companies that had set the mark of reaching a billion dollars. Understanding Unicorns in India through recent activity shows that it has been on the rise in Asia, following the footsteps of China.
There’s a strong impact and perception of a company that develops a Unicorn status anywhere around the world. The one billion thresholds are beneficial to companies as they attract more investors as well as give companies a chance to invest in other venturing businesses. The rise of unicorns in India has given opportunities to other small tech startups. This is because they gain investments through the deep-pocketed Unicorn companies.
We will go over the development of Unicorn in India and how many tech start-ups are gaining the Unicorn status via exuberant funding. Here’s an insight into India gaining more and more technological advancements that help its industries develop and advance further.
Understanding Unicorns in India 2021
2021 proved to be an immensely fulfilling year for venture capitalists and tech start-ups in India. India’s start-up ecosystem flourished as nearly 50 companies emerged with Unicorn status by the end of the year. This success gives India the third position around the globe for the most number of Unicorn start-ups. This position comes after the United States and China. India has now left the United Kingdom in fourth place globally; however, India has still a long way to go.
India’s Mensa Brand gained its Unicorn start-up status in merely six months. This development goes out to show the brimming potential of the Indian market. Contrastingly, companies like NBFC Five Star Business Finance gained their Unicorn status after being in business for 37 years. This shows that some companies gain the Unicorn status in no time and some might take longer. However, India is surely making room at the top for more and more companies.
Fintech and EdTech Contributions in Unicorn
India’s Fintech industry has been the biggest contributor to the rise of Unicorn status companies in India. Seven new key companies hailing from the Fintech industry gained Unicorn status: BharatPe, Groww, CRED, Zeta, Slice, Mobikwik, and Upstox. Unicorn status gave the economy a head start at putting their economy right next to the United States and China.
Side by side the Fintech industry is India’s Edtech industry gaining momentum with their Unicorn status. Three prominent Edtech companies, Eruditus, upGrad, and Vedantu, gained Unicron status despite being competitors. The Edtech market has been gaining investment opportunities since the downfall of the market in China.
Crypto Unicorn in India
India has faced a lot of regulatory backlash in the recent past when it comes to crypto-based opportunities. Despite the tough regulations, the crypto market gained several new Unicorn status crypto companies in 2021. CoinDCX and CoinSwitch Kuber were amongst the top new crypto Unicorns in India. Crypto is accepted globally, which can benefit the Indian economy with its crypto surge. Once India has more billion-dollar status companies in the crypto market, it can surely make its way to global dominance.
There have been several developments that contributed to the rise of Unicorn companies in India in the past couple of years. China’s policies against tech companies have perhaps had a great influence on an increase in opportunities in India. India is rapidly adopting various technological advancements that will surely put it over the top in no time. India seems to follow the footsteps of the United States and is making up for the hard policies of China.