In India more than 50 startups have the potential of entering the unicorn club in 2022 as showcased in a new study. This will take the total tally of India to well over 100 startup unicorns(those well valued over $1 billion each). The year 2022 has shaped up nicely to become a matrix and a petri-dish of startups and with each success the chances of others joining them becomes well over-precedent. The growth of startups can be attributed to various national economic policies and the ease of doing business norms. The shopping capabilities and buying parameters of the people also has to do a lot with this, the report by a consultancy firm suggested.
Amit Nawka, partner(deals and startup leader) in PwC India, which conducted the study said that, “ We can say that the base of these companies in growth stage and late-stage deals have improved have improved significantly in the calendar year 2021, depicting a stronger base of companies having the potential to reach the unicorn status. With market sentiments favourably inclined towards startups, and the large base of scaled startup companies at the end of CY21, we expect the startup’ unicorn tally to go well beyond 100 by the end of 2022.” Over $10 billion was invested in the Indian startup ecosystem in the October-December quarter alone, according to the report.
81 is the total number of startups in India as of now with a total valuation of 4274 billion. Of these 44 unicorns with a total valuation of $89 billion were born last year, shows data from Invest India, the national investment promotion agency. The PwC report shows that in the fourth quarter, startup funding crossed the $10 billion mark.
If we talk about categorisation, Fintech startups raised nearly four times more funds last year as compared to the previous year. Edtech followed closely with a growth of 86% compared to $2.2 billion raised in 2020. Software as a service came in a close third. Growth and late-stage deals comprised around 85% of the total funding. Among the most persistent and active investors were Sequoia Capital, Accel and Tiger Global. A December 2021 report by the Hurun Research Institute had mentioned that India is the third largest home for unicorns globally but trails the US and China by a wide margin.
Bengaluru and the Nation Capital Region witnessed nearly three-fourth of the total funding by venture capital and private equity funds, the report said. In its list of 50 potential unicorns it placed companies like Khatabook, Whatfix, Practo, Ninjacart, Inshorts, Pepperfry as among the candidates because of their history of having raised over USD 100 million to date.