In 2022, the number of startups turning to unicorns may have fallen, leading to a sharp decline in funding by Indian startups. His 7 startups founded by 8 female founders in 2021 became unicorns in his 2022, while in 2021 he has 6 startups become unicorns. Join the Unicorn Club in 2022.
Despite this aggressiveness, the overall scenario in this regard is not noteworthy. The Indian startup ecosystem has raised only $24 billion in 2022 by November, compared to his $42 billion raised in the entirety of 2021. As a result, the number of startups turned unicorns will drop by 50% to 21 in 2022. Another study (this one by Moneycontrol) found that only 23 of his unicorns were newly issued in India this year, compared to 44 in 2021. Globally, only 244 new unicorns will have been created in the world so far in 2022, compared to last year’s total of 542, according to data compiled by Tracxn Technologies, a private market intelligence platform.
The wave of callous investment brought to global financial markets by persistently high inflation that has forced central banks around the world to raise interest rates can hardly be ignored or overlooked. The cold spell has lasted him more than nine months and experts expect him to get worse in 2023. This clearly means that there will be even fewer unicorns next year (2023).
Here it is appropriate to mention that the first three months of 2022 have not been too bad for the Indian startup ecosystem. Just like last year, India has a new unicorn almost every week. By March, India had issued 14 new unicorns. But for the first time in about 19 months, or since August 2020, no new unicorns have been minted in India. Since then, the country has minted nine new unicorns for him in the nine months to December, compared to his 39 for the same period in 2021.
Ironically, India has yet to produce an agtech unicorn, although the agtech sector has attracted significant investor interest throughout the year. SaaS (Software as a Service) was the hottest sector in 2022. Six new SaaS startups serving various industries became unicorns this year. 4 in 2021 and 1 in 2020. There are currently 16 of his SaaS unicorn companies in India. More specifically, the enterprise tech sector will produce the most unicorns in 2022. His six startups in this sector make up his 29% of all startups entering the Unicorn Club in 2022.
Overall, the flow of capital into the startup ecosystem is slowing. From April to December 2022, VC and PE (private equity) funding to the Indian startup ecosystem fell by almost 50% year-on-year to $29.2 billion. Between April and December 2021, a PE/VC investor invested approximately $58.9 billion in the country’s startup ecosystem, making it his third largest in the world. In terms of late-stage investments, his late-stage investments in the Indian startup ecosystem have fallen to just under $25 billion in 2022, compared to his $43 billion in 2021.
How many new unicorns will mint in India and around the world next year as investors revise parameters to measure company valuations as the fundraising winter is expected to worsen in the coming months The pace of startups entering the Unicorn Club is expected to increase only in the second half of 2023 and not before then.