Exploring India's Rise as a Global Leader in the Start-up Ecosystem, Its Unicorn Success Stories, and the Role of Sage University in Fostering Entrepreneurship.
A unicorn start-up is a privately held business with a $1 billion market valuation. India will be the home of unicorns in the coming days. India is currently ranked third in the Start-up Ecosystem. China and the United States are the two nations that are ahead. The Indian start-up activities are well diversified. Our startups include sectors like Fitness, Medical, Technology, Logistics, Agriculture technology, Education technology, and Fashion. Fintech Travel. Food and Social networking, examine the diversification, Cult-Fit is a Fitness Coaching App, in medical we have 1 mg and pharm easy. We know that logistics and supply chains are the backbone of the Retail Industry. Delhivery was the startup that launched its successful Initial Public Offer. In the accessories market, LensKart is doing wonders. Red Bus the travel app has also written its success story. These are a few instances from 2021 that demonstrate India's role as a unicorn hub. Several start-ups have entered the Unicorn Club. India has 43 Unicorns in the entire start-up system. Mensa Brand, which the former McKinsey top-notch executive heads, has joined the Unicorn Club. India flaunts unicorns in every industry. The Startup ecosystem has bright prospects. In the upcoming years, the same pace needs to be kept up. The world is in a situational crisis due to various factors: the ongoing Russia-Ukraine war, the tension in Gaza, inflation, and supply chain disruptions may slow down the funding process. The Indian Startup ecosystem has stood the test of time. It takes an Indian start-up eleven odd years to reach from one unicorn to 100 Unicorn. The combined valuation of the Indian startup amounts to USD 333 billion with Flipkart and Byjus topping the list.
The Journey was initiated by Flipkart in 2012, and India has now surpassed the United Kingdom and is now home to the third-highest number of unicorns after the United States and China. With the addition of Zomato and Pay TM, the total climbed to three. India is moving forward with companies like Swiggy and Razor Pay.
In terms of union development, In the entire startup ecosystem, the two cities have made the biggest contributions. Bengaluru provides 33% while Mumbai makes up 30% of the total. Jaipur has also joined the league with cardekho.com. The government has recognised 14000 start-ups in 2021. 555 districts in India have at least one start-up when we look up sector-wise distribution Fintech industry leads by 21% in the entire Startup ecosystem.
Countries like the US have 587 Unicorns followed by China with 301 Unicorns. India has more than 100 unicorns, ranking third. Because of India's significant influence in the information technology sector, where growth is currently being driven by internet and software services, this Information technology start-up contributes 19% of the total business followed by E-Commerce, and direct-to-consumer is 10%. India startups face tough competition from China. The China-based Byte Dance is a start-up that has reached more than 140 billion dollars. The young unlisted Byjus is valued at 21 billion US dollars followed by PayTM and Zomato.
The future of startups looks quite promising. The performance of Startups depends upon the start-up ecosystem, The banks of India have infused huge amounts of money to promote start-ups. The start-ups have faced a tough time during the pandemic the valuations have drastically dropped, Start-ups of E-Commerce travel, and tourism are worst hit by 70% beauty fashion Aggrotech and even gaming have suffered a loss during the COVID Period.
Thanks to the strong funding by the Government of India many new Start-ups were established during the period the world witnessed Feel City. Grad was successful during the tough time. The government of India's Ease of doing business policy focuses on public safety Startups and the whole ecosystem got revival Arone the drone delivery system Epi guard medical equipment for safe transportation of patients, health code providing physicians support to the patients P I metrics is Indian analytics-based patient care system was developed and generate good profits. India has seen a V-shaped recovery all startups travel tourism E-commerce have had a wonderful recovery. OTT platforms have added more than 30% of the new subscribers to the customer base. Financing and policy decisions have boosted the Ecosystem due to which we have tremendous growth in 2020 but sustaining the same growth always remains challenging there is bliss in 2023-2024. This drop in the growth rate is due to reality checks on loss-making start-ups and Macro Economic Risks.
The losses in economic activities are due to the recent spike in the Russia-Ukrainian conflict, Tension between Gaza and Israel, and US Interest rates. Increasing Acquisition cost and lack of profit. Indian Startups are supported by Mega Investors like Soft banks and Vision Fund. Soft Bank has supported many Indian Start which are in Red specially ByJus and Pay TM.
The years 2022-23 remain the years of Mergers and Acquisitions more than 100 M&A have been completed in the Indian start-up ecosystem. Thyrocare was acquired by PharmEasy for US dollars 600 million. This deal brings together India's leading digital health platform and one of the most cost-effective diagnostic solution providers to create an Integrated digital health platform.
One of the high-profile acquisitions in India is Ola acquired Taxi for Sure for 200 million USD. Walmart purchased 77% of the stake for USD 16 billion which is the largest acquisition. Zomato purchased US competitor Urban Spoon for 50 million dollars. This takeover signaled the entry of Indian firms into the US market.
The highest-value Startups are Byte Dance, Space X, Shein, Stripe Klarna, Checkout.com, Canva, etc.
SAGE University (SUB), School of Management is dedicated to promoting innovation and entrepreneurship through its Atal Labs, which are designed to help students develop their entrepreneurial skills. These labs provide a supportive environment where students can explore their ideas and get the guidance they need to turn them into real businesses. At SAGE, learning goes beyond the classroom; students participate in hands-on projects, workshops, and seminars that encourage creativity and practical skills. This approach not only helps students understand business concepts but also equips them with the tools they need to succeed in the competitive world of entrepreneurship. By fostering a culture of innovation, SAGE University (SUB) is preparing its students to become the next generation of leaders and creators in various fields.
Dr. Apoorva Bhatnagar
Associate Professor
Marketing & Finance
School of Management
SAGE University, Bhopal
