44 Indian startups turned unicorns (a term for companies after they reach a billion-dollar valuation), generated $106 billion in revenue for founders, employees, investors and the broader economy. With this they have directly and indirectly created 1.4 million jobs every year spread over a decade
The Success Stories
MakeMyTrip, InMobi, Paytm, Byjus, Cars24, Ola have collectively contributed to the $106 billion value as per the Indian Tech Unicorn Report 2020 by Orios Venture Partners, an early-stage venture capital fund.
The category the startups deal in which was leading the pack were those that were payments-centric, followed by retail and SaaS (software as a service). Also in the game were logistics, data analytics, travel, food and gaming companies.
Razorpay, PineLabs, Zerodha and Postman and 8 others got to join the unicorn club in 2020, setting a record for the number of entrants in a year.
Leading the way at $16 billion, Paytm is the highest valued Indian startup with Byjus on its heels.
The Indian Hotbeds
Bengaluru boasts of being the primary incubator with 41% of unicorn startups hailing from there. Delhi at 34% and Mumbai at 14% are breeding grounds as well.
Startups that achieved their success in a later stage attracted corporate executives who gave up their jobs to move on to their second ventures, also investing in potential future unicorns on the side.
Tech Leaders and Disruptors
Orios Venture Partners have stakes in other unicorn status holders such as Ola, Druva and Pharmeasy. The venture capital firm also noted tech being the differentiator between firms in the previous eras and those in today’s. The burgeoning tech industry is also supported by rapid digitalization and tech adoption.
“The segments of edtech, healthtech, agritech, B2C (business-to-consumer) channels, social commerce, gaming and enterprise tech witnessing double-digit growth and adoption are expected to bring in the next wave of unicorns,” said Ankur Pahwa, partner and national leader, e-commerce and consumer Internet, EY India.
Future Public Listings
A major milestone for any company is its Initial Public Offering (IPO) bolstered by profitability, growing scale and interest. In India’s case, however, just MakeMyTrip, JustDial and Naukri.com have been publicly listed so far.
Zomato, Delhivery, Flipkart and Nykaa are set to follow this year.
Shortening Maturity Periods
India is observing a trend for companies to mature and reach billion-dollar valuation in less and less time.
Naukri.com (founded in 1997) and MakeMyTrip (founded in 2000) have had to grind for over 20 years to achieve unicorn status.
Zomato, Flipkart and Policy Bazaar took around 8.7 years.
Nykaa and Oyo have taken the trend further at 5.8 years.
Udaan and Ola Electric managed to turn unicorns in 3 short years.
And there’s more to come with Nasscom predicting 12 unicorn club debuts in 2021.
10 Exciting Indian Startups All Set To Earn Rs 7200 Crore Via IPO Launch, learn more.