Since April of this year, the values of Indian startups have fallen. Nonetheless, India created more unicorns in the first five months of 2022 than the previous year.
According to recent research by market intelligence firm Tracxn, 14 Indian companies were valued at more than a billion dollars between January and June 1, 2022. During the same period last year, the figure was 13.
Notably, the year 2021 was the best for Indian companies, particularly in terms of unicorn formation. In 2021, forty-four firms reached this milestone, a fourfold increase over the 11 unicorns formed in 2020.
Currently, India ranks in third place in terms of overall unicorns created, with the US holding the first place. However, China is ranking second and India has overtaken the United Kingdom, in terms of unicorn creation.
Earlier this year, Commerce and Industry Minister Piyush Goyal stated that the Indian startup ecosystem should attempt to raise 75 unicorns in 75 weeks to commemorate India's 75th anniversary of independence. While the aim appeared to be achievable when the country saw the arrival of 10 unicorns in the first 53 days, things have slowed since then.
The ongoing Russia-Ukraine war, worries of an oncoming recession, and Fed rate rise slowed investment in the Indian startup scene. Investors are wary about spending their money, causing stock values to fall. With this, the Indian startup ecosystem has increased its runway in preparation for a financial winter.
Several organizations have cut off a portion of their workers, including Ola, Unacademy, Cars24, Vedantu, MFine, and others. Gaurav Munjal, co-founder, and CEO of ed-tech startup Unacademy predicts the investment slowdown will endure 12-24 months.
