INDIA WILL HAVE 122 unicorns in the next two to four years, according to the Hurun India Future Unicorns Index 2022 released by Hurum Research Institute. The projection is in line with the recent trends. In just one year, the number of unicorns has increased 65 per cent probably spurred by the pandemic.
As we celebrate India's emergence as the third largest ecosystem for startups after the US and China, we need to pause and review the emergence of unicorns and their impact on the capital market. The questions that naturally arise pertain to valuations and IPOs. However, leading investors feel that the valuation is between two-parties and has nothing to do with public money.
Valuation vs growth
Higher valuations are no longer a sign of healthy startup growth, especially so for a unicorn. However, since a number of unicorns are also some of the largest employers in the Indian market, a decline in valuation and business slowdown can be catastrophic, not just in terms of venture capital (VC) funds but by way of major job losses.
"We are in the middle of the year, Q3 or the second half of the year has just started. The Covid outbreak has been unfortunate but the last couple of years have been very healthy for venture capital. Just one word of caution is, of course, valuations. Indian ecosystem is creating digital tailwinds. What has happened in the ecosystem actually is not unhealthy, because one never wants over-valuations, but rather always wants companies to be rightly valued. I can see a silver lining in that companies get rightly valued and not richly valued," says Sanjay Nath, Founder, Blume Ventures, sharing his viewpoint on the current scenario.
Esta historia es de la edición 30 July 2022 de Businessworld India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición 30 July 2022 de Businessworld India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.