April 14, 2021
2021 has already seen the rise of 10 unicorns, as the sector grows beyond 2020 numbers.
These unicorns (privately held startups valued above US$1bn) operate across various sectors, including healthcare, e-commerce, fintech, and more.
US-based investor, Tiger Global, has invested in four of the six rapidly growing startups.
India has the 2nd largest startup ecosystem in the world, continuing its rapid growth since 2014.
In a record-setting week for investments and funding, 6 Indian startups successfully raised US$1.55 billion and established themselves as part of India’s thriving list of unicorn ventures. Following an active 2020 that saw the rise of 12 new startups, this year has already featured the rise of 10 unicorns within India’s startup ecosystem, as reported by the Economic Times on April 12. The newly established ‘unicorns’, or privately held startups valued above US$1 billion, operate across various sectors, including healthcare, e-commerce, fintech, and social media, with US-based investor, Tiger Global, choosing to invest in four of the rapidly growing startups.
India has the second largest startup ecosystem in the world. As per the Economic Survey 2020, there has been a dramatic increase in the pace of new firm creation in India since 2014. While the number of new firms in the formal sector grew at a compounded annual growth rate of 3.8 per cent from 2006 to 2014, this number rose significantly to 12.2 percent in the following five years.
The Start-up India initiative instituted by the Government of India seeks to aid the growth of start-ups since their inception and transform them into entities that will create a great many employment opportunities for the general population. Statistics suggest that the Indian startup ecosystem sees an average of 6-7 startups emerging per day, with an average of 12 jobs created per startup. Under the aegis of the movement, over 130 start-ups have received funding, 660 start-ups have received non-monetary support, while over 14,000 more startups have been identified for additional support and guidance.
The Digital India Movement, rise of digital payments in India and frequent collaborations between State governments and private sector entities have helped accelerate digitization across industries. As internet connectivity has witnessed significant growth in the recent years, market ecosystems have opened up across the nation for start-up entities to tap into, enabling the continued growth of the sector.