By BW CFO World Online Bureau
Indian unicorns doubled in 2021 but still, there are some startups that are being forced to leave due to regulatory red tape.
India added three unicorns per month in 2021 to nearly double the overall number of startups valued at over $1 billion to 51 as of end-august. Even as cumbersome regulations are forcing startups to leave India and settle in other countries where they enjoy the better treatment as per Hurun India, which prepared the list. It can be noted that over the past few years dedicated efforts have been taken to hone the startups’ ecosystem by the government through flagship initiatives like ‘startup India’.
Hurun said the number of gazelles, which are valued at over $500 million can turn unicorn in two years, was pegged at 32, while there are 54 cheetahs commanding a tag over $200 million, who can achieve the coveted status in four years. The future unicorns are valued at $36 billion, adding that the leap to being a unicorn can also happen swiftly as seen in five cheetahs that jumped into the unicorn club during the last eight months.
India is home to more than 600 million internet users and is expected to have 900 million users by 2025. The adoption of the internet in rural areas will further complement the rise of technology start-ups. Fintech companies operating in mobile payments, insurance, blockchain, stock trading and digital lending will grow further to capitalize on internet penetration.
At present, India is third in the list of countries having the most unicorns, trailing the US (396) and China (277) but ahead of the UK and Germany. At a time when debates rage over the importance of pedigree, the list said IITs and IIMs are the biggest bases to churn out successful entrepreneurs, stating that 17 founders graduated from IIT Delhi, followed by 15 from IIT Bombay and 13 from IIT Kanpur, while IIM Bangalore was the favourite post-graduation school with 13 founders in the list. The top investors in the Gazelles and Cheetahs in the Hurun India Future Unicorn List 2021 are Sequoia, followed by Tiger Global with 37 and 18 investments, respectively.