NEW DELHI : A famous saying states: “Ideas get their worth when something is done with them”. During the past decade, India has seen several start-ups mushrooming especially in technology sector and many of them reaching Unicorn status (technology-driven, disruptive, privately-owned start-up companies valued at over $1 billion). They have shown a rare immunity against the waves of the Covid-19 pandemic that have brought most other businesses down to their knees. In 2021, amidst COVID19, India witnessed 11 new unicorns, taking the total to 48, the third largest number in the world, after the US and China. Joining the initial Unicorn club are some marquee names such as MakeMyTrip, InMobi, Paytm, Ola, BYJU’S, Cars24, Razorpay, Swiggy, Zomato, etc.

The Indian start-up ecosystem is nothing short of a revolution with $106-billion worth of value-creation by 48 unicorns, in turn creating 1.4 million direct and indirect jobs. The emergence of a greater number of unicorns is beneficial for all stakeholders as well as for employment generation. Moreover, start-ups have helped women entrepreneurs to contribute immensely to the start-up ecosystem. These include Swati Bhargava of CashKaro and Falguni Nair of Nykaa, who are an inspiration for young women.

While the average time taken by several companies to become Unicorns is seven years, this period has been reducing recently as founders with prior founding or start-up experience enter the game. The recent Tie & Zinnov joint release, titled ‘Covid-19 and the Antifragility of Indian Start-up Ecosystem’, estimates India’s Unicorns will reach 100 by 2025.

Unicorns can be spotted in a crowd of other start-ups not just by valuations but as industry disrupters. Maintaining the first-user advantage and exploiting every opportunity that comes their way is key to success. At the helm of such unicorns is strong executive leadership that makes or breaks the company. Another notable aspect of unicorns is they are more consumer-oriented rather than other enterprise start-ups. The factors enabling the rise of unicorns comprise the availability of private equity funds, increasing Internet penetration and digital payments, more robust infrastructure and the rising pool of skilled talent. 

India’s changing reforms and policies towards start-ups and various government initiatives have helped the Indian start-ups scale. The inflow of forex especially from leading tech companies such as Facebook, Google, and Microsoft into the Indian start-up ecosystem signals the immense potential of the domestic market. As business models get more complex and interlinked, the regulators have to play a more proactive role in formulating appropriate regulations that encourage innovation and support emerging business models rather than hindering innovation. Besides promoting local funding, the government and corporate entities may need to invest in a big way through leading academic institutions to de-risk start-up investments in the long run.

As we move ahead there are many start-ups in India commanding high valuations in the queue to become unicorns.  The time is right for the birth of more unicorns in India as it is brimming with new ideas and innovations; the investor confidence is high; and the business climate and policies are conducive.