2021 winds up as a blockbuster year for start-ups making India one of the largest Unicorn creators in the world. Amid the pandemic, India saw as many as 42 start-up ventures blooming into unicorns. The rising confidence of global investors in India stays staunch with over $38 billion in funding spread across 2,055 rounds, 12 initial public offerings, and the emergence of 40 unicorns.
From becoming the first Chennai-based software firm to list on the Nasdaq to counting yourself among India’s rich people’s list as self-made women, each start-up story had historic moments for India.
But more remarkably, almost half of the country’s start-ups are focusing on business-to-business space, offering enterprise-focused services. This is a significant shift from the initial rush of young entrepreneurs who were merely replicating successful business models from Silicon Valley, primarily aimed at retail consumers.
Indian technology innovation is catching the eye of investors—and has the potential to create a new crop of Indian B2B, cloud-software behemoths that could rival large enterprise companies in the U.S.
There are over 2,000 such companies in India engaged in high-end engineering, which is 70 percent higher than the number of deep tech companies in 2018. In fact, the B2B industry in India is growing so fast that Indian B2B start-ups account for 43% of Indian unicorns.
The other significant development is the rise in the number of start-ups that are becoming scale-ups. These are companies that have grown over the last three financial years at an annual rate above 20% in terms of the number of employees or turnover and reaching this scale is the dream of any budding entrepreneur.
The secret to the exponential growth of a scaleup lies in its scalable business model, its non-conformist mentality, and its long-term sustainability. According to NASSCOM, the start-up ecosystem is expected to add additional 250 scale-ups by 2025 in emerging areas like EdTech, Logistics, Automotive, FinTech, and HealthTech.
However, India is still third in the number of unicorns added in the ecosystem, after the U.S.A that tops the list with 396 unicorns, while China is at the second spot with 277, showed data from Hurun Research Institute.