India has a year full of unicorns, $ 20 billion raised in 2021

Bangalore-headquartered online learning platform Vedantu raised $ 100 million at a $ 1 billion valuation on Wednesday, becoming the third tech company to join the coveted unicorn club in 2021. The next day, unicorns such as Ola Electric, Ofbusiness and Meesho received a total of $ 900 million from investors. It seems that nothing can stop the Indian companies of the new age from attracting domestic and foreign funds.

Indian unicorns received a record $ 20 billion in investment this year, according to the latest data from Venture Intelligence. In the period from July to September 2021, more than USD 10 billion were invested in such companies (in 28 transactions). Of the 66 unicorns in the country, almost a third (29) were minted in the first nine months of 2021.

According to leading industry organization Nasscom, 76 unicorns could appear in the startup ecosystem by the end of 2021.

Also read: India will add 28 unicorns in 2021 to bring the total to 66; more than 3.3 thousand people are employed: Nasscom

The speed at which companies are reaching the billion dollar valuation is also remarkable. Think about it – in 2011, mobile ad platform InMobi, which was a four-year-old firm at the time, became India’s first unicorn. This was followed by the addition of 1-2 unicorns every year until 2018. Between 2018 and 2020, 21 startups received a valuation of $ 1 billion. However, there have been 29 unicorns released in the past nine months. Together, the unicorns of India have been able to generate $ 15 billion in revenue and employ over 3,000 people.

“2021 was a watershed year for the startup ecosystem – not only in India, but around the world. With the growing digitalization, the ongoing talent wars, the availability of private venture capital, and the growing acceptance of entrepreneurship by the public, we believe the unicorn’s growth story will be an irresistible force throughout 2022. That said, cash flow and profitability are still important, and entrepreneurs and their investors who rely on this foundation will be the ultimate / real winners in this dynamic market, ”says Atit Danak, CoNXT Director and Practice Leader, Zinnov.

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After the Securities and Exchange Board of India (SEBI) eased the compliance burden for the next generation of professional groups, startups are now lining up to be listed on stock exchanges at record prices, also creating wealth for their existing investors in the process.

Following the IPO of Rs 9,375 crore, a large foodtech company in August, nearly a dozen digital companies are likely to raise money in the markets in the next 6-8 months, testing the risk appetite of a growing number of retail investors, especially when many of the these firms have yet to become profitable.

“It is great to see the record growth in PE-VC investment in India continue, but the highlight of the last quarter were the successful IPOs of Zomato, a consumer-focused India-focused enterprise, and a global SaaS-focused venture Freshworks,” said Arun Natarajan, founder. venture intelligence.

“Such exemplary liquidity events will increase the proportion of the asset allocation pie that PE-VC is investing in India from both local and foreign investors,” Natarajan added.

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