The year 2020 has seen six internet startups hit a multi-billion dollar valuation – a surprise to many considering it the Dabbing Unicorn w Italy (Print On Back) new Shirt year of the pandemic. But over the years, some unicorns have also become infamous for constant losses, have massive valuations crashing, and more. But are we seeing a new kind of unicorn?
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One way or another, the unicorns have defined India’s startup ecosystem. Big deals and bigger valuations are offered when venture capitalists call for new fundraising. The number of unicorns is considered an indicator of the maturity of the ecosystem. If billion-dollar companies are created consistently and quickly, isn’t that underlying market promising?
Moneycontrol analyzed 30 odd Indian unicorns – based on their sectors, the Dabbing Unicorn w Italy (Print On Back) new Shirt number of years they took to valuate, investors, and more – with data from Venture Intelligence, to find out what were changes over the past decade – for good, for bad, and for everything beyond. One measure of the quality of a unicorn startup is how much money it has raised to hit a billion-dollar valuation. Less, better, because raising $ 600 million to be valued at a billion dollars, could be in favor of math finance and less quality. If a startup raised $ 600 million in equity, it could potentially be valued at over a billion, regardless of the quality of the company. On this metric, startups appear to have improved this year.
On average, by 2020, a startup raised $ 262.5 million to be valued at $ 1 billion or more, the lowest in three years, and significantly lower than $ 409.3 million. and $ 401 million in 2019 and 2018. Among this year’s unicorns, Nykaa, software startup Postman and payments firm Razorpay raised $ 104 million, 208 million, and 212 million, respectively. Dollars to become unicorns. In fact, Postman is valued at $ 2 billion.
Compare this to say that online grocery store BigBasket, which raised $ 656 million by 2019 – when it became a unicorn, or eyewear retailer Lenskart, raised 668 million. sign up to be valued at $ 1.5 billion.
Enterprise-to-business startups – monetizing a business, have generally become unicorns by raising less money than internet consumer companies. B2B companies – such as logistics company Delhivery or software companies Druva and Icertis generally have stable revenues from customers, tend to spend less on marketing and in the Dabbing Unicorn w Italy (Print On Back) new Shirt case of Soft can go global at a very early stage – making them bet safer than some consumer internet or B2C startups, able to raise money at high valuations but can also drop quickly.
The maturity of India’s startup ecosystem is also depicted by spheres that are launching unicorns. India’s first unicorns are found mostly exclusively in e-commerce such as Flipkart, Snapdeal, and ShopClues. Followed by Paytm in digital payments, Ola in ride-hailing and Zomato and Swiggy in food delivery, successful models in China and the United States.
To some extent, this wave will continue as vertical e-commerce players get to scale. Nykaa, BigBasket, and FirstCry are all Indian unicorns, but their business model is globally relevant and has produced dozens of unicorns globally.