indian unicorns

THE RISE OF INDIAN UNICORNS

Unicorns, Unicorns, Unicorns, indian unicorns!

The Rise of indian unicorns is a word we hear or read every day, whether it is in economic discussions or in the news. This unicorn is not a mythical creature, instead, it refers to any startup that reaches a valuation of $1 Billion and is classified as a unicorn in the business world.

What do you think is the reason for so much usage of this word in discussions and newspapers? Well, India has the third-largest number of Unicorns in the world and according to Hurun Global, India adds three unicorns per month in 2021.

So, what are the factors driving this boom? Among them are the availability of private equity funds, a transition from offline to online payments, robust infrastructure improvements, a rise in skilled labour, and many more.

This surge of unicorns is driven by the youth of our country. India has a young population with 60% of the population aged between 15 and 64. Startups like these helped India recover from the pandemic in a V-shaped way. Startups like these address the needs of today’s tech-savvy consumers.

Can you imagine the possibility of having salon services delivered to your home one day?  Who would have thought that we could order food from outside restaurants at almost any time of day?

We shouldn’t overlook the contribution of the government to this growing startup ecosystem. Startup India is a flagship initiative of the government to catalyze the startup culture in India and to create a strong, inclusive ecosystem to foster innovation and entrepreneurship.

Providing startups with easy access to funds – The government is allocating 10,000 crores of rupees to provide startup companies with venture capital, a 3 year tax holiday, and methods to conduct research. As part of Startup Yatra, an initiative by Startup India to search for entrepreneurial talent in Tier 2 and Tier 3 cities, 207 districts across 23 states were surveyed, impacting 78,346 aspiring entrepreneurs. The survey noted that 1,424 incubation offers were given to startups as part of this initiative.

Moreover, startups are changing not only consumer behaviour and job opportunities but also business scenarios and market trends. Startups are creating an environment for fast and dynamic learning. Startups have been there to help mankind during any unfortunate event. Paytm, Freecharge, and other apps enabled all Indians to make payments and handle their finances during demonetization. And during the pandemic, Grofers and Bigbasket helped Indians get their groceries delivered to their homes, and Zomato, a food delivery startup, also started delivering groceries.  This shows how dynamic these startups are.

IPOs are a jargon term used in finance, but nowadays it appears in many newspapers and news channels. Why is this? Because startups are driving this trend. Almost every two weeks, a new startup is preparing for an IPO. IPOs are in the news every day. During Nykaa’s IPO recently, celebrities participated and took home a great deal of money.  The IPOs are oversubscribed showing that the general public and celebrities want to be a part of the stock market and earn a good profit at the same time. The IPOs are driving the stock market higher. 

Youth and millennials are also investing in the stock market because of these startups. Digital technology flourished during the pandemic-induced lockdown. India’s financial literacy is being improved by applications like Zerodha and Groww, which help Indians invest in the stock market. 

Recently, the government approved the Startup India Seed Fund Scheme (SISFS) with a corpus of Rs 945 crore to provide financial assistance to startups for proof of concept, prototype development, product trials, and market entry. 

As global companies like Uber, Airbnb and Amazon have grown, Indian entrepreneurs have been inspired to not only set up similar companies like Ola, OYO and Flipkart, but also be innovative to establish firms like Zomato, BYJU’S, and Paytm.

There were 700 million internet users in India in 2020. Financial Express reported that India had the most real-time online transactions in 2020, ahead of countries such as China and the US. In the country, 25,5 billion real-time payments transactions were processed, followed by 15,7 billion in China, which illustrates the country’s growth potential in digital services. 

 Over 40 startups working on space and satellite projects are cited in the survey as having funding, teams, and structure, following the government opening up the space sector to private players(indian unicorns).

In Economic Survey 2021, more than 39000 startups created 4,70,000 jobs. In this way, Unicorns help create job opportunities at a time when jobs are disappearing everywhere. They also promote a culture of innovation and entrepreneurship, which in turn unleashes the creative spirit. 

In the short, we can say that Unicorns are driving the country’s growth for the better!

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