It was an exciting year for the Indian startup economy, as around 30 and still counting startups have joined the ‘Unicorn club’ as we are nearing the end of 2021. India produced an estimated average of around 3 ‘Unicorns’ per month this year, creating a ‘Unicorn Boom’ in the year 2021. The number of unicorns produced in India has been steadily growing throughout the years, with over 60 unicorn firms, India is quickly becoming the world's fastest-growing startup ecosystem.
India is now third on the list of nations with the most unicorns, behind the United States (396) and China (277), however ahead of the United Kingdom (32) and Germany (18), according to the report by Hurun India. Bengaluru is India's Silicon Valley, with nine unicorns this year hailing from the city. Mumbai is just behind it, with seven unicorns in its possession. Three unicorns follow in Gurgaon's footsteps. As of now, Delhi, Noida, and Pune each have two unicorns, but Thane just has one as of September.
The unicorn craze, which began with Digit Insurance earlier this year, has spread to a wide range of industries, including finance, e-commerce, and even cloud cooking. Rebel Foods, which owns a network of cloud kitchen brands including Fasoos and Behrouz Biryani, became the first unicorn from the specialised sector that arose during the pandemic on Thursday. Few of the other startups that are among this year’s unicorns are Gaming platform Mobile Premier League, grocery website Grofers, cryptocurrency exchange CoinDCX, and finance company BharatPe.
What activated this sudden BOOM in India’s startup economy? – Well, the Work-from-Home environment that developed during this Pandemic has led to an increased expansion of digital enterprises in India, but it also produced a huge list of unicorns.
There are Three elements that industry experts and investors have noticed;
These factors are clearly interlinked, as with the start of the Pandemic the economy saw a huge shift to digital modes of services and payments. For the fiscal year ending March 31, 2021, digital payment grew by 30.19 per cent. In addition, the UPI (unified payments interface) ecosystem recorded 3.5 billion transactions worth Rs 6.54 trillion by the end of September 30, 2021. According to Venture Intelligence data, the fintech sector has seen a record $4.8 billion across 143 deals from January to September. Seven FinTech’s have already joined the unicorn club this year. Aside from banking, the unicorn world is dominated by SaaS (software as a service), e-commerce groceries, and marketplace players. Tiger Global and Sequoia Capital continued to dominate the investment environment. This shift to digital payment modes has in fact had the most impact and contribution towards the making of the Unicorn list of 2021.
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