Great Indian story of succeeding in tough times – four Indian startups, Postman, Nykaa, Unacademy and Razorpay, have become unicorns amid covid-19.
In the venture capital world, a “unicorn” is a startup with a value of $1 billion.
The nation is on track to have 8 unicorns in 2020, almost the same number of additions as in 2019.
According to a study titled ‘Covid-19 and the Antifragility of the Indian Startup Ecosystem,’ India is on its way to having 100 unicorns by 2025.
The study was launched by TiE-Delhi, a global non-profit organisation supporting entrepreneurship in collaboration with Zinnov, a global management and strategy consulting company.
It revealed that total funding fell by 50% compared to pre-covid levels during the lockdown. As a result, around 40% of start-ups have been adversely affected and 15% have been forced to discontinue operations.
The third largest start-up ecosystem in the world was jolted by the multi-dimensional pandemic and the effect was extreme during the lockdown period from March to June 2020. However, the rate of recovery, both in demand and in investor sentiment, was faster than anticipated as the economy opened.
Why is India doing so well in tough times?
During Covid19 there has been a big move to digital consumption – so startups in education, healthcare and trade have boomed.