Sprinting startups, from unicorn to decacorn
At present, India stands as the third largest country for startups globally, after the US and China. The number of startups nationally has increased steadily from 2012 to 2020, growing at ~17% every year. Meanwhile, funded startups increased at a 16% CAGR. Of the current 110,000+ startups, about 9% are funded, implying there is significant scope for further investment.
Despite setbacks from the 2020 lockdown, India added 44 new “unicorns” (startups having valuation over USD 1 billion) in 2021, featuring 18 fintech and 4 healthcare companies. Overall, Indian startups raised around USD 39 billion in 2021, a three-fold increase over the USD 13 billion in 2020, as per Tracxn data.
Mainly three elements, a strong digital payments environment, a massive smartphone user base and digital-first company strategies have come together to attract investors. This macro-PDF series studies the growth of Indian unicorns and what is in store from a People, Development and Financial angle.
