India to have over 150 Unicorns by 2025 Says Report
According to a report by early stage venture capital fund 3one4 Capital, the Indian startup ecosystem will see a three fold increase in valuation and a significant increase in the number of Unicorns, which currently stands at 59, by 2025.
The fund, which was founded by Pranav Pai and SiddharthPai, has invested in startups such as microblogging site Koo, short video social platform Mitron, and Neobanks such as Open and Jupiter, among others.
According to the report, the number of startups will increase to 100,000 by 2025, up from around 55,000 now. They will attract $100 billion in investment between 2021 and 2025, employ 3.25 million people, and become the world's second largest ecosystem after the United States, it said, adding that India will be home to over 150 Unicorns.
According to the report, the startup valuation will skyrocket from $315 billion to $1 trillion by 2025.
Unicorns in India have generated $180 billion in value as of today. This figure is expected to rise to $621.9 billion by 2025. Soonicorns, or potential unicorns, are expected to be worth $114.2 billion in 2025, up from $41.3 billion today. Startup valuations will more than double from $ 50 billion to $ 100 billion by 2025, according to the report.
In the pandemic-plagued year of 2020, Indian startups raised $11.5 billion through 924 transactions, with more than half of them taking place in Bengaluru and New Delhi. In fact, between 2017 and 2020, Bengaluru alone accounted for 45 percent of total deal value.
According to the report, between 2009 and 2019,Delhi-NCR had a total of ten unicorns, while Bengaluru had nine, Mumbai and Pune had four, and Chennai had one
Bengaluru is teeming with successful companies that have raised millions of dollars in venture capital funding from some of the world's top investors. Bengaluru has 5,234 startups, Mumbai has 3,829, and Hyderabad has 1,940. This startup list includes all companies that were founded between 2009 and 2019.
Cred, Digital Insurance, Glance, Grow, Mu sigma, Ola electric, Bigbasket, Biocon Biologics, Byju's, Dailyhunt, InMobi, Meesho, Razorpay, Sharechat, Swiggy, Udaan, Unacademy, Verse Innovation are the top 18 unicorn startups in Bangalore.
Delhi-NCR is the fastest growing city in the country, with over 7000 (Delhi-NCR Startup) companies, including ten major players such as Paytm, Jomato, and Oyo.
According to the report, between 2009 and 2019, Delhi-NCR had a total of ten unicorns, while Bengaluru had nine, Mumbai and Pune had four, and Chennai had one.
Many of these successes have grown into unicorns, or private companies valued at more than $1 billion.
In April 2021, eight startups joined the unicorn club: fintech startup CRED, social media startup ShareChat, wealth management company Groww, messaging platform Gupshup, social commerce startup Meesho, and epharmacyPharmEasy. Moglix and Zeta became unicorns in May, and BrowserStack debuted in June. BlackBuck, a logistics tech startup, became a unicorn in July, followed by Droom and OfBusiness.
Already this month (August 2021), four startups have joined the unicorn club, including the first crypto unicorn. With its $370 million Series E round this week, BharatPe became India's 18th unicorn, followed by Mindtickle, upGrad, and crypto exchange CoinDCX.
According to the most recent figures, ecommerce, fintech, and enterprise technology are among the most popular sectors in the Indian unicorn club. Flipkart, Snapdeal, FirstCry, Moglix, Infra.Market, Udaan, Paytm Mall, Droom, and others are among the 12 ecommerce unicorns. Paytm, PhonePe, Zerodha, Razorpay, Pine Labs, and CoinDCX are just a few of the fintech startups on the list. Enterprise tech startups in the unicorn club include Zenoti, GupShup, BrowserStack, Freshworks, Zoho, Druva, Icertis, Ofbusiness, BlackBuck, Mindtickle and others.
3one4 Capital is a Bangalore-based early stage venture capital fund. The firm works in specific market categories and at the crossroads of adjacencies that are large, growing, and ready for novel products and services.
SaaS and Enterprise Automation, Direct-to-Consumer, Media & Content, FinTech, and Deep Technology are the themes pursued, with a focus on sectors such as machine-driven actionable intelligence services for the enterprise, ambient intelligence technologies, edtech, logistics and distribution, agri tech, consumer products and services, and health.
3one4 invests in companies that use technology to create, grow, or dominate large markets in India. The fund also invests a portion of its capital in companies based in the United States that have a positive impact on the themes pursued in India.
The fund works with founding teams and subject-matter experts to prioritise and strategize for product market fit, and then optimise for defensibility and revenue and impact growth through a deep involvement strategy. The fund aims to reduce risk, identify new growth opportunities, and return rewarding outcomes to all stakeholders by focusing on margins and delivering uncompromised end-user experiences.