How Startups and Unicorn Emergence are Changing India’s Future. The National Startup Day was declared on January 16 by Prime Minister Narendra Modi. On this day, the startup community’s extraordinary development and contributions to the Indian economy are celebrated. Since its commencement in 2016, the Startup India program has experienced a remarkable surge in the number of businesses. Rising from approximately 340 in the first year to an astounding 1,15,000 by the year 2023. The Fund of Funds Scheme, the Credit Guarantee Scheme for Startups, the MAARG mentorship platform, and the State Ranking Framework. These programs have not only given companies much-needed financial support. But they have also fostered an atmosphere that is favorable to innovation and expansion.
In today’s fast-paced and dynamic market, Indian unicorns are thriving
These startups are creating lots of jobs in addition to creating cutting-edge technologies and solutions. There are 111 unicorns in India as of October 3, 2023, and their combined worth is $349.67 billion. Of all the unicorns, 45 were born in 2021 with a total valuation of $102.30 billion, and 22 in 2022 with a total valuation of $29.20 billion. In 2023, there was the appearance of Zepto as unicorn.
India has established itself as a thriving center for startups that have been fostering innovation and entrepreneurship across a range of industries. Including a sizable user base, rising internet penetration, and supportive legislative settings. The CEO and founder of Kalyanam Furniture, Tejpal Singh Shekhawat, stated that significant programs like Startup India are now in effect. Providing incentives and removing obstacles related to regulations for newly established companies. Residents in this climate of catalysis have witnessed the rise of new unicorns. Startups in industries like as technology, e-commerce, healthcare, and renewable energy.
Indian businesses raised an incredible $7 billion
Indian businesses raised an incredible $7 billion in funding in 2023, according to Tracxn data. This is a significant advancement in India’s aspirational goal of attaining a $5 trillion GDP. The cornerstones of India’s economic milestone strategy include digitization, fintech, inclusive growth, technology-enabled development, and a growth-investment cycle that is positive.
The founder of Tagglabs, Hariom Seth, noted that although government measures have sped up company registration, funding, and GST procedures. Policy thinking needs to change from one of regulation to one of creative collaboration. “Enhancing knowledge sharing through public-private mechanisms can empower startups to leverage technology and skills, paving the way for groundbreaking products,” he stated.
Those that Invest in Unicorns
Startups have raised over $17 billion in funding, which is 1.8 times the $9.4 billion raised in H1 2021. The most active investor has been Sequoia Capital India, which is followed by Blume Ventures, 9Unicorns, Better Capital, Inflection Point Ventures, LetsVenture, Accel, and Alpha Wave Global. Kunal Shah is the founder of CRED.
FinTech, EdTech, Ecommerce, Social Network, FoodTech, Logistics and Supply Chain, Media and Entertainment, D2C Brands, SaaS, and HealthTech are some of the top industries that are attracting investment. 19.7 percent went toward FinTech, 9.4 percent went toward EdTech, and 6.2 percent went toward Ecommerce.
