Desi startups lap up $63B since 2016, spawn 27 unicorns
The startups ecosystem has raised as much as $63 billion in growth capital between 2016 and 2020, when they spawned 27 unicorns, according to the data collated by the Indian Private Equity and Venture Capital Association and Praxis Global Alliance.
According to them, this makes India the third-largest tech startup ecosystem in the world. Of the total inflows, nearly half came in 2019 alone -- $34 billion and $17 billion in 2020 till May.
The time period also created as many as 27 unicorns in the country. Unicorns are those with $1 billion or more valuation.
Tech-enabled players continue to drive investors' interest and have dominated the early stage funding landscape here.
According to Rajat Tandon, the president of Indian Private Equity and Venture Capital Association, "This is a great report covering data and insights on our booming tech startup ecosystem, carrying a fresh perspectives about developers and service demand."
"The growth stage startup and venture capital ecosystem is poised for the next leap with an increasing number of unicorns, soonicorns, and minicorns, even amidst the pandemic."
Photo: YS Design
Madhur Singhal, managing director of Praxis Global Alliance, said, "The domestic startup ecosystem is primed for a renewed phase of growth. Ecommerce and tech startups have shown resilience during the pandemic, fundamentally altering their unit economics to become more sustainable.
Praxis Global is a next-gen management consulting and business research services firm delivering practical solutions to business problems by combining domain practitioner expertise, AI-led research approaches, and digital technologies.
As per the Hurun Global Unicorn List reported in August, India is the fourth biggest in terms of unicorns, behind the US, China, and the UK, with the 21 unicorns collectively valued at $73.2 billion.
Of the 61 unicorns founded by Indians, a massive two-thirds are based outside of India, predominantly Silicon Valley in the USA, while only 21 are based in India, Hurun Report chairman and chief researcher Rupert Hoogewerf said.
(Disclaimer: Additional background information has been added to this PTI copy for context)