Unicorns and decacorns in India: the startup funding boom

India is also the third-largest “unicorn” hub with 90 unicorns companies, only behind the US which boasts 487 unicorns, and China with 301 unicorns, and ahead of the UK which has 39 unicorn companies. “Unicorn” is a term used in the venture capital world to describe a privately held startup company with a value of over USD 1 billion.

Indian startups raised more than USD 42 billion across 1,583 deals in 2021, which exceeded the total funds they raised in the last three years combined. Unicorn startups in India are solving problems in the local market, and have global ambitions. In 2022, there have been eight new additions to the “unicorn” club already, including companies like Fractal Analytics, LEAD School, Darwinbox, DealShare, Polygon, ElasticRun, Livspace, and Xpressbees. On the other hand, Flipkart is currently the most valuable decacorn (a “decacorn” is a relatively new company worth at least USD 10 billion), worth USD 37.6 billion after raising USD 3.6 billion in July 2021. Other decacorns to emerge out of India are BYJU’s, with recent funding of USD 4.5 billion, and a current valuation of USD 21 billion; OYO Rooms, currently valued at USD10 billion; and food delivery giant Swiggy is the fourth startup in India to become a decacorn after it raised USD 700 million, in a round led by Invesco, to command USD 10.7 billion.

As of February 2022, India is home to 90 unicorns with a total valuation of USD 298.69 billion. Out of these 90 unicorns, 44 unicorn startups were launched in 2021, and 8 unicorns started in 2022. However, this is not the end. The months ahead in 2022 are likely to see another unicorn boom in India. There are at least 15 very promising soonicorns (startups with the growth potential of soon becoming a unicorn) in India that may join the unicorn club in 2022.

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