Despite the challenges posed by the second wave of COVID-19, the Indian startup ecosystem witnessed significant growth in the April-June quarter of 2021. According to the latest report by NASSCOM-PGA Labs, Indian startups secured a total funding of $6.5 billion across 160 deals during this period.
Surge in Unicorn Companies
The second quarter saw the emergence of eleven new unicorn companies, bringing the total count to 53. This surge in unicorn formations has prompted a revision of earlier projections, with forecasts now anticipating India to have 150 unicorns by 2025, owing to the substantial increase in funding and unicorn rounds.
Notably, eleven startups achieved unicorn status in 2020, indicating a sustained momentum in the Indian startup landscape.
Resilience Amid Challenges
Despite facing headwinds from the pandemic’s second wave, the Indian startup ecosystem demonstrated remarkable resilience in the second quarter. The report lauded the ecosystem’s ability to thrive amidst adversity, citing it as the most funded quarter and witnessing the highest number of unicorn additions.
Key Highlights
The top 10 deals in the April-June quarter accounted for nearly 50% of the total $6.5 billion fundraise.
Several companies achieved unicorn status during this period, including Urban Company, Cred, Meesho, Groww, PharmEasy, ShareChat, GupShup, Chargebee, Moglix, Zeta, and BrowserStack.
The momentum has continued into the third quarter, with an additional 10 startups joining the unicorn club. These include BlackBuck, Droom, OfBusiness, BharatPe, MindTickle, UpGrad, CoinDCX, Eruditus, Grofers, and Zetwerk.
Overall, 25 startups have attained unicorn status in 2021 thus far, reflecting the robust growth trajectory of the Indian startup ecosystem.
The surge in funding and unicorn formations underscores the confidence of investors in the potential of Indian startups, highlighting the country’s position as a thriving hub for innovation and entrepreneurship.
Clara Cardoso
Mariana Oliveira
