Time To Become Unicorn Reduces to Half in India

The time to reach for unicorn status has cut in half for startups founded post 2010. The average year to reach unicorn status till the year 2010 was 12 years which now has reduced to 6 years, says a report.

In the world of startups, becoming a unicorn – a company valued at over USD 1 billion – has long been a most sought-after achievement. And in recent years, it seems that reaching this status has become comparatively easier, especially for companies in the Foodtech, Marketplaces, and Fintech industries.

According to a report by Boston Consulting Group (BCG), Time Bridge and TiE Delhi on ‘Road to Hyperscaling in India’, the time it takes for a startup to reach unicorn status has been cut in half for companies founded post-2010. 

Some of the start-ups that turned unicorns in record time were – Mensa Brand- 6 months, Glance-1.5 years, Udaan-2 years, Ola Electric-2 years.

What sectors maximum Unicorns are from?

The report points that nearly 60% of the unicorns and soonicorns are from Enterprise Tech, Fintech and E-Commerce, in line with the funding trends

This acceleration is largely due to the impressive growth seen in the Marketplace and Fintech sectors.

The BCG-Times Edge-TiE report also highlights that 40,000 out of total 57,738 startups launched in India are active. Among these startups, 106 successfully turned into unicorns, making India 3rd country with most unicorns today.

According a report released by the Credit Suisse Research Institute India is home to as many as 6 of the world’s top 100 unicorns.

What fueled faster-growth of startups as Unicorns?

There has been 4X increase in the new unicorns in 2021 as compared to previous years. 

This acceleration is mainly attributed to increased access to funding that startups now have. In the past, it was often difficult for startups to secure large amounts of capital, especially in industries that were not well-established. However, with the rise of alternative funding sources, such as crowdfunding and venture capital firms, it is now much easier for startups to obtain the funds they need to grow and expand.

Additionally, the rise of technology has played a significant role in the success of these startups. With advancements in artificial intelligence, big data analytics, and other cutting-edge technologies, companies are now able to scale their businesses at a much faster rate than in the past.

What are the reasons for the rise of Enterprise Tech, FinTech and Ecommerce as Unicorns?

• The rise of fintech and e-commerce startups is particularly noteworthy, with the Covid-19 crisis being a catalyst for the adoption of digital infrastructure, mobile banking, payment gateway services, mobile wallets, and paperless lending. This shift has resulted in a surge of enterprise tech startups that provide solutions for remote work, collaboration, and communication. 
• The adoption of technologies such as the Unified Payments Interface (UPI) and Aadhaar has made it easier for people to transact online, leading to the growth of digital payment platforms and mobile wallets. The rise of fintech startups has been fueled by the need for fast, secure, and convenient payment options, and the pandemic has only served to reinforce this trend.
• The pandemic has accelerated the adoption of digital payments and new online behaviors, leading to a surge in e-commerce startups that offer innovative solutions for online shopping. Many of these startups offer unique products and services that cater to the needs of specific customer segments, such as niche marketplaces, subscription services, and personalized shopping experiences.

The startups are undoubtedly reflecting the spirit of new India today with the country being a home to 6 of the world’s top 100 unicorns, with startups achieving unicorn status as fast as in 6 months and India becoming the 3rd country in the world with most unicorns today.