Prime Minister Narendra Modi lauded the Indian startup ecosystem on 29th May and noted that the nation had produced 100 unicorns worth more than $300 billion each. What qualifies someone as a unicorn, and what does that entail?
An Explanation of a Unicorn Startup
Startups with a value of $1 billion privately held and supported by venture capital are known as unicorns. The value of unicorns is determined by their growth potential, as seen by investors and venture capitalists who have participated in various investment rounds rather than directly by their financial performance. As of now, unicorn startups are still described in the same way. The number of unicorns has increased.
What is the Unicorn Record for India?
In a recent “Mann Ki Baat” radio broadcast, Prime Minister Modi said that a record 44 unicorns were established in India during the pandemic last year. In addition, 14 other unicorns were created in the first three to four months of this year. He said that our startups have been generating income and value even at this stage of the global pandemic. According to the report, there has been a nine-fold growth in investors and a seven-fold increase in startup funding in the country between 2015 and 2021.
Characteristics of Unicorn Startups
Being a unicorn is not easy, and each one today has a unique history and a unique set of characteristics that have benefited it. A few characteristics that apply to all unicorns are given below:
1. Innovative Disruption
Most of the time, unicorns have caused a commotion in their industry. For instance, Uber transformed how people commuted. When traveling, Airbnb altered how people scheduled their accommodations, and Snapchat upended how people used social media, among other things.
2. A few Milestones
It is common knowledge that unicorns are primarily newcomers to their fields. They alter people’s behaviors and gradually become necessary to themselves. They are also perceived to maintain innovation to stay ahead of rivals who might later experience success.
3. High Tech
Their reliance on technology for their business models is another feature shared by unicorns. Uber created a user-friendly app to get their model adopted. By utilizing the web to its full potential, Airbnb shrunk the world.
4. Consumer Focused
B2C businesses make up 62% of unicorns. They want to be a part of consumers’ daily lives and simplify and make things easy for them. Another significant benefit of these firms is that they keep costs low.
5. Individually Owned
Since most unicorns are privately owned, an established company’s investment increases its value.
Can a Unicorn only be a Startup?
Yes, it can.
Only “startups” with an estimated value of above $1 billion are considered unicorns. The “decacorn” refers to businesses with valuations greater than $10 billion. Among the decacorns are Dropbox, SpaceX, and WeWork.
List of Unicorn Startups in India
The story of Flipkart began with Binny Bansal and Sachin Bansal, two friends. Flipkart was founded in 2007 and is listed as one of the biggest e-commerce businesses in India. With a current valuation of more than $15.5 billion, Flipkart far outpaces all other e-commerce businesses in India.
One97 Communications, formed in 2010 when mobile had just recently been a part of the lives of the common man in India, is the owner of Paytm, launched by Vijay Shekhar in 2010. One97 Communications gradually evolved into Paytm, a full-fledged payment service provider for businesses, from mobile top-up service to a bus and train ticket booking, bill payment enabler, and mobile top-up service. Paytm has come a long way, with around $2 billion in capitalization.
Meesho, founded in 2015 by Sanjeev and Aatrey Barnwal, offers small and medium-sized enterprises a reselling platform that enables them to launch their online company through social media platforms, including Facebook, Instagram, and WhatsApp. According to reports, the Bangalore-based startup has registered 100K registered suppliers to more than 26K postal codes across 4000+ locations, producing over INR 500 Cr in revenue for individual business owners.
Dhaval Shah and Dharmil Sheth established PharmEasy in 2015. It offers a wide range of services, including collecting samples for diagnostic testing, teleconsultation, the delivery of medications, etc. Additionally, it offers pharmacists a way to employ procurement, delivery, and logistics support. PharmEasy has links with more than 60K physical pharmacies and 4K medical professionals throughout 16K postal codes in India.
The Bangalore-based fintech business, founded by Kunal Shah in 2018, joined the unicorn club with an attractive $2.2 billion valuation. Members-only CRED rewards people for paying their credit card bills on time by giving them attractive incentives and access to first-rate activities. Users of credit cards can manage several cards on this platform and provide a credit score analysis.
6. Urban Company
It is an all-in-one platform that enables customers to hire premium service providers, such as masseurs and beauticians, as well as sofa cleaners, carpenters, and technicians. It was founded by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan in 2014. Over 5 million consumers have been handled by Urban Company, which has a network of 40,000+ skilled service workers across major global cities.
The Goods and Services Tax (GST) rollout in India has changed how start-ups conduct business today. Many indirect taxes have been eliminated or combined under one umbrella, thanks to the GST. As a result, particular GST requirements for startups must be adhered to provide these businesses with compliance relief and other benefits.
How many Unicorns are there in India in 2022?
India created a total of 18 unicorns in the first quarter of 2022.
Physics Wallah, Open, Games 24×7, LEAD, Oxyzo, Fractal, DealShare, Darwinbox, Livspace, Polygon, Xpressbees, ElasticRun, Hasura, Uniphore, Amagi, CredAvenue, Purplle, and LeadSquared.
The term “unicorn” has evolved from being a mythical animal to becoming a frequent topic in discussions about business and finance. The unicorn business has been well in the market today and has gained recognition. The unicorn will turn out to be a successful star because after reaching a milestone, any startup must continue to work hard.
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