In May this year, India became home to 100 unicorns, positioning itself as the hub of start-ups. The same year in August, 20 start-ups achieved the unicorn status. The collective valuation of these start-ups was at $341 billion.
Moreover, these firms were able to raise more than $94 billion in funding from outside, despite the so-called funding-winter in the domestic market.
However, behind this success story of India churning out unicorns at rapid pace, remains a grim reality plaguing the start-up ecosystem: rampant losses.
More than 10 Indian unicorn start-ups are making huge losses.
BYJUs: ₹4,588 crore
OYO: ₹3,944 crore
Udaan: ₹2,482 crore
Flipkart: ₹2,446 crore
Eruditus: ₹1,934 crore
PhonePe: ₹1,728 crore
Paytm: ₹1,710 crore
Swiggy: ₹1,617 crore
Unacademy: ₹1,537 crore
Freshworks: ₹1,499 crore
The figures are significant considering that many of these unicorn companies are expected to launch Initial Public Offerings (IPOs) soon.
While Indian start-ups struggled to get more funding, a series of layoffs, shutdowns and multiple raids by the government on crypto startups became the headlines in August, too.
Edtech start-up Vedantu reportedly fired laid off 100 employees for the third time in 2022.
Nearly 300 Meesho employees were after the shuttering of the company’s grocery vertical Superstore, according to a report by Inc42.
Agritech startup DeHaat is said to have fired a significant number of employees recently.
Another company LEAD and social media platform Koo also joined the list.
Meanwhile, city-wise, Bengaluru continued to remain the top unicorn maker as 38 out of the 100 unicorns are based out of the city.
Delhi-NCR comes second in the list as 30 startups from the region managed to make it to the list of 100 unicorns.
While Mumbai, Chennai, Pune and Hyderabad collectively produced 32 unicorns.
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