Unicorns Deep In Losses, Valuations Set To Wilt

51 India-domiciled businesses racked up a cumulative loss of $6.5 billion in FY22, raising questions on rich valuations.

- V. KESHAVDEV

India’s biggest unicorns have got all the attention for their valuations, but a reality check shows trouble is brewing in paradise. A record 51 India-based Unicorns (including four listed players) have run up a cumulative loss of ₹48,582 crore ($6.5 billion) on a revenue of ₹1,82,746 lakh crore ($24.53 billion) in FY22. The 47 unlisted unicorns have cumulatively raised $33.65 billion and are collectively valued at $168 billion, which translates into a revenue multiple of 6.41 times for the entire universe, shows an analysis of the numbers from start-up tracker, Tracxn.

The four listed start-ups, Nykaa, Paytm, Zomato and Delhivery, were collectively valued at $29.26 as of March 2022 (May 2022 in case of Delhivery) even as they ended with a cumulative loss of ₹4,588 crore ($615 million) over a revenue of ₹20,790 crore ($2.80 billion).

A further slicing of the numbers by sectors and companies, though, throws up a completely different picture.