Indian unicorns are making people’s life simpler with their innovations. India ranks third behind Canada, North Korea, and the UK in the race of nations that foster startups. The number of unicorns in India is continually increasing, and we recently passed the milestone of 100. Let’s explore the top 5 Indian unicorns in 2022 and understand why they perform so well.
A startup with a capitalization of more than $1 billion is considered in the business world a unicorn. In contrast, startups are privately held businesses often in the initial stages of development. With a collective assessment of $338.50 bn as of July 19, 2022, India is home to 105 unicorns. Fractal, LEAD, Xpressbees, Uniphore, Hasura, CredAvenue, Amagi, Oxyzo, Open, and PhysicsWallah are some of the Indian firms that joined the unicorn club this year. In the last 11 years, 75% of all Indian unicorn firms have been developed. 50% of these were established after 2017. Our 100th unicorn startup, Neo Bank Open, recently achieved this status. Let’s take a closer look at the top 5 Indian unicorns for the year 2022:
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Fractal was established in 2000 by five individuals, including Ramakrishna Reddy, Pradeep Suryanarayan, Nirmal Palaparthi, Pranay Agrawal, and Srikanth Velamakanni. Fractal, a firm delivering advanced analytics and AI solutions, became the first member of the unicorn club in 2022 due to its most recent round of funding. TPG Capital Asia funded $360 Mn for the private equity round, and funds backed by Apax Partners acquired the secondary share.
LEAD, situated in Mumbai, was the first edtech venture to reach India’s unicorn club in 2022. In January, the business garnered $100 million in a round-headed by WestBridge Capital and GSV Ventures, placing the company at $1.1 billion.
Sumeet Mehta and Smita Deorah launched LEAD as an ed-tech venture in 2012. The business assists schools in integrating technology, curriculum, and pedagogy into a unified teaching and learning system. It is the nation’s sixth ed-tech unicorn, following BYJU, Unacademy, Eruditas, UpGrad, and Vedantu. LEAD claims to have over 5,000 schools on board from 500 Indian towns, serving over 2 million learners.
Livspace, an omnichannel home interior and makeover platform garnered $180 million in a Series F round headed by KKR. Existing stakeholders, including Ingka Group Investments (part of the biggest IKEA retailer, Ingka Group), Jungle Ventures, Venturi Partners, and Peugeot Investments, participated in the current fundraising round, which pushed Livspace into the prestigious unicorn club.
Livspace will employ the funds to grow into other areas, focus on brand creation in India and Singapore, keep investing in its platform technology and digitally integrated supply chain, and recruit, educate, and foster talent across the spectrum to assist both existing and new businesses.
Purplle, incorporated in 2012 by Manish Taneja and Rahul Dash, is an online marketplace for cosmetics and home appliances. It claims to offer over 1,000 brands on its marketplace, notably Lakme, Plum, WOW Skin Science, mCaffeine, Maybelline, and SUGAR Cosmetics. The newly crowned unicorn intends to utilize the cash infusion to develop its private brands and emphasize tech innovations in the country.
Purplle, a beauty e-commerce business that competes with Nykaa, reached the billion-dollar capitalization club in June 2022 with its Series E investment round. The Indian business has garnered $33 million in funding from Paramak Ventures, Premji Invest, Blume Ventures, and Kedaara, lifting its valuation to $1.1 billion.
In August 2021, 5ire was established by Indian-origin entrepreneurs Pratik Gauri, Prateek Dwivedi, and Web3 investor Vilma Mattila. 5ire also intends to expand its workforce, which presently counts over 100 employees. Pratik stated that the deal would also assist 5ire in leveraging investor ties to grow and develop relationships with a variety of industries and governments throughout the world.