‘The startup ecosystem has reached a point of self-sufficiency.’
- ByStartupStory | January 22, 2022
In India’s IT startup environment, IPOs and unicorns have produced a flywheel effect. This is the message of a research released on Friday by Nasscom and consultancy firm Zinnov.
According to Pari Natarajan, CEO of Zinnov, tech startup IPOs (of which there were a record 11 last year) and unicorns (of which there were a record 42 last year) have generated enormous funds, which these companies are investing in other tech startups and using to buy products created by these new-age digital ventures. He claims that IPOs and venture capital are also creating wealth in the hands of individuals who are utilising it to start fresh tech enterprises. Darwinbox, he added, is an example of a company that has benefited from this because their HR management software is used by several Indian unicorns.
Unicorns are not only investing in companies, but also mentoring them, according to Nasscom president Debjani Ghosh.
According to the article ‘Indian Tech Start-up Ecosystem: Year of the Titans,’ companies raised $24.1 billion last year, more than doubling their pre-Covid levels. In comparison to 2020, the number of high-value agreements (those worth more than $100 million) increased thrice, reflecting investor confidence.
From 2020 to 2021, the ecosystem’s total value increased by double, to an estimated $320 – $330 billion.
After those in the United States and China, the ecosystem is thought to be the largest. In 2021, investment into it grew at a rate that was maybe the highest in the world. Last year, there were 2,400 angel investors, a significant increase from the previous year.
Last year, 260 corporations participated in startup engagement, up from 170 in 2020. In 2021, 175 corporations invested in startups, with 52 percent of them being multinational corporations.
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