Unicorn Startup: A Journey Towards Success
The term "unicorn startup" has become quite common in the startup world. It is the most used term among entrepreneurs, and every entrepreneur's wish is to see their startup make it to the unicorn list.
But first, let's understand what a unicorn startup is.
The term "unicorn" was first used by Aileen Lee, the brain behind Cowboy Ventures, in 2013. It was used to define numerous ventures that were scaling unbelievably at that point.
Introduction to Unicorn Startup
Before we dive deeper, let's understand the meaning of a unicorn startup and its criteria.
"A unicorn is a privately owned startup company valued at over $1 billion, which is approximately 7,500 crores in Indian currency."
It's no secret that India's latest growth story is driven by innovation and entrepreneurship. The booming Unicorn Club in India is the result of the numerous startups emerging in the country.
Impressively, there are 107 unicorns in India with a total valuation of a whopping $340.79 billion.
History of Unicorns
Have you ever wondered what it takes to become a unicorn startup or make it to the unicorn list?
Do you know why a startup is called a "unicorn"?
Unicorns, as we know, are the most unique and legendary creatures in human civilization. They symbolize magical powers that heal sickness and portray strength.
Your startup venture reflects your ideas and personality, showcasing how you perceive the world and the changes you want to bring to your industry.
The recent surge of famous and successful unicorn startups in India has surprised many. These startups have become a source of pride for the Indian startup ecosystem and a guiding light for other startups. They have not only scaled domestically but also internationally.
It's surprising to see how these companies were once in their learning stage and are now making a global impact.
Let's explore what makes these Indian unicorn startups unique.
Unicorn Startup Meaning
First and foremost, let's understand what a unicorn startup is and why it is so talked about.
To be considered a unicorn, a startup needs to have a valuation of $1 billion, regardless of the sector or location in the world.
According to a recent industry report, if a startup crosses the $10 billion valuation mark, it falls into the "decacorn" group, also known as super unicorns. WeWork and Dropbox are examples of such companies.
Unicorn companies are known for their innovative disruption, tech-savviness, leading position in their respective sectors, being privately owned, and significantly contributing to the economy's growth.
It's interesting to note that unicorn startups are mostly privately owned and backed by venture capital funds.
Numbers of Unicorns
In today's world, the concept of unicorn companies has become common and widely discussed. However, creating a unicorn company is not an easy task.
It requires a lot of hard work, patience, and commitment throughout the journey. Until a startup achieves the unicorn title, it often operates on a limited budget.
India currently has 107 unicorn startups, and this growth has been witnessed in just a few years.
The Indian government hopes to see a new wave of startups in tier-2 and tier-3 cities, which will revolutionize the Indian business game. It is predicted that the next 2-3 years will bring 10x growth to the startup ecosystem.
India's First Unicorn Startup
Have you ever imagined your startup growing so big that it becomes a unicorn?
Initially, there is a lot of struggle, and you have to work with limited resources and a never-give-up mindset. The fact is that India has become a home for startups, thanks to venture capital firms and angel investors. Since 2015, Indian startups have experienced significant growth.
In 2021, India achieved a
century in the total count of unicorn companies born and grown in the country.
You might be surprised to know that InMobi was India's first unicorn startup in 2011. Since then, India has never looked back. Many industry experts believe that India can potentially have 250 unicorn ventures by the end of 2025.
InMobi, an advertising and digital media company based in Bengaluru, stands as the torchbearer. It offers mobile advertising platforms that optimize advertisements on mobile phones. It was founded by Abhay Singhal, Amit Gupta, Mohit Saxena, Naveen Tiwari, and Piyush Shah.
As of April 2021, InMobi has a valuation of $12 billion.
India's unicorn startup story has spread worldwide. With the ease of doing business and launching new companies, India has witnessed numerous startups that are doing exceptionally well.
The Department of Promotion of Industry and Internal Trade, along with the Ministry of Commerce and Industry, launched several recognized government schemes that benefit startups. These schemes assist in patent applications, intellectual property rights (IPR) protection, and income tax exemptions.
Many startups have already made their mark on the unicorn list. In 2022, India witnessed a flurry of funding and investments in startups. Fintech startups led the way with close to $3.82 billion in funding, followed by e-commerce with $3.47 billion.
In 2022, the Indian unicorn startup ecosystem had a phenomenal year, with 20 new startups making it to the unicorn list. These unicorn ventures raised a total of $94 billion, with an estimated value of $343 billion.
Out of the 107 unicorns in India, more than 50 founders are based in Bengaluru, followed by 30 in Delhi, 18 in Mumbai, and 10 in Kanpur.
In terms of gender diversity, India still has a long way to go. There are only 19 female founders spread across 18 startups.
Can only startups become unicorns?
The answer is "yes."
Only startups with an estimated value above $1 billion are referred to as unicorns.
In our next blog post, we will discuss game-changing and amazing startups, as well as some interesting stories from Shark Tank.
Stay tuned!