India created 14 unicorns in the first half of 2022 — before funding slowdown hit them

• Fourteen Indian companies turned unicorn between January and June 1, 2022.
• Forty four companies hit this milestone throughout 2021.
• India currently ranks third in overall unicorns created, with the USA taking a lead.

The Indian startup valuations have taken a hit since April this year. Yet India has still managed to create more unicorns in the first five months of 2022 compared to the year before.

According to a recent report by market intelligence provider Tracxn, 14 Indian companies turned unicorns — companies valued over a billion dollars — between January and June 1, 2022. Last year, the number stood at 13 during the same time frame.

Notably, 2021 was the best year for Indian startups especially in terms of unicorn creation. Forty four companies hit this milestone in 2021, representing a four-fold increase from the 11 unicorns created in 2020.

India currently ranks third in overall unicorns created, with the US taking the lead. China ranks second and India has overtaken the United Kingdom, in terms of unicorn creation.

Companies	Sector	Month of unicorn round
Fractal	SaaS (software-as-a-service)	January 2022
Lead School	Edtech	January 2022
DarwinBox	SaaS	January 2022
DealShare	Ecommerce	January 2022
ElasticRun	Logistics Service	February 2022
LivSpace	Interior Design	February 2022
XpressBees	Logistics	February 2022
Uniphore	SaaS	February 2022
Hasura	SaaS	February 2022
CredAvenue	Fintech	March 2022
Amagi Media Labs	SaaS	March 2022
Oxyzo Financial Services	Fintech	March 2022
Games 24x7	Gaming	March 2022
Open Financial Technology	Fintech	May 2022

Source: Venture Intelligence

75 unicorns in 75 weeks

Earlier this year, the minister of commerce and industry Piyush Goyal had said that the Indian startup ecosystem should aim to raise 75 unicorns in 75 weeks to the 75th anniversary of Independence. While the target did seem possible as the country witnessed the entry of 10 unicorns in the first 53 days, things have slowed down since then.

The ongoing Russia-Ukraine war, impending recession fears, and Fed rate interest hikes caused a funding slowdown in the Indian startup ecosystem. The investors are cautious about spending their money, leading to correction in stock prices. With this, the Indian startup ecosystem has been preparing for a funding winter by increasing their runway.

Several companies — including Ola, Unacademy, Cars24, Vedantu, MFine and others — have laid off a chunk of their workforce. Gaurav Munjal, the co-founder and CEO of edtech unicorn Unacademy, believes that the slowdown in funding can last anywhere between 12-24 months.

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