From Paytm and Ola to Zomato and BYJU'S, India has seen a steady rise in the number of startups. Many of these companies witnessed rapid growth soon after being founded, with some even turning into unicorns.
Besides their significant contribution to the economy, the success achieved by some startup entrepreneurs has worked as a driving force for the youth of the country to become self-reliant and opt for entrepreneurship.
In the last year alone, 44 Indian companies joined the unicorn club with a total valuation of $93 billion. In contrast, this year saw the emergence of 21 unicorns, having a total valuation of $26.99 billion.
Highlighting this growth, the CEO of Zerodha, Nithin Kamath, has pointed out the silver lining of the "startup world's excesses" in his recent LinkedIn post.
Nithin Kamath wrote, "for the first time in India, there are so many aspiring to be entrepreneurs". He added that the growing inclination towards entrepreneurship is akin to the youth striving to get into some prestigious Indian institutes such as the Indian Institutes of Technology (IITs), Indian Institutes of Management (IIM) or the civil services. "More people building for India, in India is the only way we can get to $5 trillion+," he further wrote.
According to Invest India, the total funding in Indian startups has increased by 15 times from 2015 to 222, while the number of investors has increased by nine. India currently has more than 105 unicorns with a total valuation of $340.79.
Roughly one unicorn entered the Indian startup ecosystem every year till FY 2016-2017, while the past four years have seen a 66% year-on-year growth in the number of startups turning into unicorns yearly.
Some Indian companies have also managed to achieve the decacorn status.
While a unicorn is described as a private startup valued at over $1 billion, a company enters the decacorn club after growing to more than $10 billion.
Flipkart, Nykaa, Swiggy, and BYJU'S are the four Indian startups to have bagged the status as of July 2022.