India’s Expanding Unicorn Club: New Entrants 2021

Unicorn is a privately owned startup having valuation of $1bn or higher. USA, China, India, UK and Germany are the top 5 countries with highest number of startups with unicorn status. There are more than 600 unicorns around the world as of now. At present there are 47 unicorns in India. Flipkart, Snapdeal, Quikr and Shopclues are the former Unicorns of India. Once a Unicorn is acquired by some other company or gets listed on the bourses, it is no longer termed as a Unicorn. In 2021, so far 15 new companies have acquired the unicorn status in India. The most recent added to the list was the banking technology provider ‘Zeta’. A Unicorn’s valuation is not necessarily based upon the profits made by it. An investor may get attracted towards a new startup due to its future growth potential. It could be due to the unique product or business strategy that the startup has been following. A startup with an innovative idea may create its own monopoly in a specific business field adding to its future prospects. Believing in its true potential, the investors pump-in funds to this startup and that escalates its valuation.

Author: JJSingh