50 more startups with the potential to be unicorns in 2022: Report
- IBEF
- January 18, 2022
According to a survey released on Monday by a consulting firm, India has 50 start-ups with the potential to acquire the coveted unicorn' status in 2022, and by the end of the year, the list of new-age enterprises valued at more than US$ 1 billion will be at least 100.
According to some observers, India added 43 start-ups to the list in 2021, which saw a big surge in company valuations in the listed and unlisted market led by sufficient liquidity, and the number of unicorns increased to 68 by the end of the year.
According to PwC India research, over US$ 10 billion was invested in the Indian start-up ecosystem in the October-December quarter alone. We can observe that the base of firms in the growth stage and late-stage deals has increased dramatically in FY21, indicating a stronger basis of companies with the potential to reach unicorn status, according to Amit Nawka, the firm's partner for acquisitions and start-ups.
He added that market sentiments are placed favourably towards start-ups, and when coupled with the large base of start-ups, the number of unicorns will go well beyond 100 by the end of 2022. According to Hurun Research Institute research published in December 2021, India is the third-largest home for unicorns in the world, trailing only the United States and China by a huge margin. According to the PwC research, Indian entrepreneurs raised US$ 35 billion in over 1,000 rounds of fundraising in 2021, which was 1.5 times more than the previous year. The most active sectors were edtech, software as a service, and fintech.
In 2021, growth and late-stage deals accounted for 85% of the capital attracted by start-ups. According to the report, Bengaluru and the National Capital Region (NCR) received roughly three-fourths of the total funding from venture capital and private equity funds.
Companies such as Khatabook, Whatfix, Practo, Ninjacart, Inshorts, Ecom Express, Pepperfry, and Livspace were included in its list of 50 potential unicorns due to their track record of raising more than UD$ 100 million to date.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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