This year was ideal for 42 Indian startups to achieve Unicorn status. This club has been a good host for all startups after 2021. For this state, each of the startup’s fundraising should be $ 1 billion. According to the definition of “Unicorn”, which is used in the venture capital industry, it refers to a startup that achieves a $1 billion valuation.
For some of the companies Unicorn floods has been achieved in the worldwide scale. The term was originally coined in 2013 by US venture capitalist, Aileen Lee. There are only 39 startups around the world that fit this definition and haven't changed since then. Reaching milestones was once considered elusive. However, the Indian example shows that the term unicorn no longer has the same weight as before. 42 unicorns were created in India. This is a triple jump from 11 new unicorns in 2020 and 9 unicorns for last year.
CredAvenue, 18 months India's FinTech became a unicorn with a huge $ 137 million funding
Debt market CredAvenue is the latest Indian unicorn to raise $137 million in a funding round, Bloomberg reported Sunday (March 6). Based in Chennai, FinTech connects businesses with lenders and investors. Its value increased from $410 million in September last year to $1.3 billion. This means it is the fastest fintech unicorn in India. Eighteen months have passed between the creation and the new evaluation.
Company provides digital technology solutions for the debt cycle from repayment to collection. The latest round was led by Insight Partners, B Capital Group and Dragoneer. CredAvenue said, it plans to use the new funds to expand into India and other major global markets. We recently acquired Spocto, a specialist in collection support technology.
Founder and CEO Gaurav Kumar said in an online interview with Chennai that “If digital debt infrastructure supports growth, India's debt market will enter a hyper-growth mode.” “It's comparable to the boom in the Indian stock market in the 1990s.” Bloomberg report reports a surge in funding for Indian e-commerce and tech companies, leading to mass production of unicorns in 2021. Bloomberg reports that it could continue this year as investment from venture capital firms rises.
PYMNTS reported “social commerce startup DealShare is another recent Indian unicorn that Dragoneer has also invested in. DealShare was the fifth unicorn from India in January. DealShare planned to use this money to spend on technology and data science, expand its logistics infrastructure, and build a franchise network of offline store this purpose is the same as Technology Transfer and Exchange Network (D8tten) whose goal is to broaden and expand the technology capacity. In 2018, the company sells daily necessities to middle-income earners using a community-buying model.
The neoteric funding boom is expected to spread to next year, helped by the rapid adoption of Indian technology and innovative products from start-ups. There are nine more days this year, and we may see some more surprise announcements.