India has always been considered a country with stringent laws when it comes to startups. The country is also one of the places that come down in the rankings of ease of doing business globally. However, the situation is getting better in recent times. It is raining unicorns in the country, with six companies getting this status in April till now. Moreover, in 2021 alone, eleven unicorns have come into existence. Hence, one can say that the country is rising high in terms of business easiness, and the future of startups look bright.
What exactly is a unicorn? In simple words, a unicorn is a startup that reaches a valuation of $1 billion.
Till now, Indian has 100 unicorns, with a significant number coming into existence after 2005. A Credit Suisse report that came into the news earlier this month confirms that 67 of these 100 unicorns came up after 2005. The report suggests that noteworthy changes in the business environment and the changes in investment in infrastructure, funding is the reason behind the surge in the number of unicorns in the country.
The fact that the month has seen so many unicorns into the picture is a piece of historic news for the country's technology industry. The new names in the list of the unicorns are Gupshup and Mohalla Tech. Other than these, the latest entrants in the list are Groww, a platform for investment, API Holdings Pvt., a digital pharmacy company, Meesho, and Cred.
With the growing number of smartphone users in the country and the low cost of internet services, global investors are finding growth opportunities for startups. These investors include more prominent names like SoftBank Group Corps and South Africa's Naspers Ltd.
P.N.Sudarshan, a partner at Deloitte, informed, "Large funds such as Naspers, SoftBank, and Tiger Global have significant amounts of capital to invest, and these startups are now on top of their list."
Most of these unicorns have their locations in the developed cities of the country, including the capital city, Delhi, Mumbai, Bangalore, Hyderabad, Pune, Chennai, and Delhi NCR.
With the rise in the number of unicorns and more than 1500 startups coming into the picture in 2020 alone, the future of startups looks bright in the country in the coming times. The digital medium has also played its part in the constant rise, and it would not be incorrect to say that India is becoming a country that is afraid to take risks. Additionally, according to a report, out of these 1500 startups, more than 55 can become unicorns in the future. The pandemic has given ample opportunities for startups to grow, and experts believe that the suitable business environment is here to stay for a good time now.
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