Indian unicorns double in 2021, but some startups leave too

India added three 'unicorns' per month in 2021 to nearly double the overall number of startups valued at over USD 1 billion to 51 as of endAugust, a report said.

Even as, cumbersome regulations are forcing startups to leave India and settle in other countries where they enjoy better treatment, as per the Hurun India, which prepared the list.

It can be noted that over the last few years, dedicated efforts have been undertaken to hone the startups ecosystem by the government through flagship initiatives like 'Startup India'.

Hurun said the number of gazelles, which are valued over USD 500 million can turn unicorn in two years, was pegged at 32, while there are 54 cheetahs commanding a tag of over USD 200 million, who can achieve the coveted status in four years, as per the Hurun India Future Unicorn list.

The future unicorns are valued at USD 36 billion, it said, adding that the leap to being a unicorn can also happen swiftly, as seen in five 'cheetahs' which directly jumped into the unicorn club during the last eight months.

Anas Rahman Junaid, managing director and chief researcher at Hurun India, said preparing the list of such companies which get private placements was a difficult task and added that inputs have been taken from venture capital funds.

"India is home to more than 600 million internet users and is expected to have 900 million users by 2025. The adoption of the internet in rural areas will further compliment the rise of technology start-ups. Fintech companies operating in mobile payments, insurance, blockchain, stock trading and digital lending will grow further to capitalize the internet penetration," he said.

At present, India is the third in the list of countries having the most unicorns, trailing the US (396) and China (277), but ahead of UK (32) and Germany (18), it said.