Are Indian Unicorn Startups Reshaping the Economy?

While growing digitalization was already transforming the way the world’s businesses operated, the Covid-19 pandemic further expedited the trend, as most of our basic activities, from grocery shopping to marriage celebrations, shifted online.

The creation of unicorns is beneficial to all stakeholders, including employment and the Indian economy.

According to a popular saying; “Ideas earn their worth when something is done with them.” For a variety of reasons, start-ups have made news in India on a regular basis during the last decade. The desire to achieve Unicorn status is one of the most powerful motivations. Do you know that it takes an average of seven years for an Indian start-up to reach a $1 billion valuation? 

MakeMyTrip, InMobi, Paytm, Ola, BYJU’S, Cars24, Razorpay, Swiggy, Zomato, and others have all joined the inaugural Unicorn club. The proper people, tools, ideas, and, most crucially, data to add value to their ideas are what set them apart from the pack. Another distinguishing feature is their commitment to constantly upgrading, testing, and enhancing their products and services.

The Indian startup environment is nothing short of a revolution, with 44 unicorns generating $106 billion in value and 1.4 million direct and indirect jobs. It’s not unexpected that 86% of Unicorn’s founders are IIT graduates. The institution has made significant progress in building an environment that encourages entrepreneurship. Furthermore, start-ups have aided women entrepreneurs in making significant contributions to the start-up ecosystem. Swati Bhargava of CashKaro and Falguni Nair of Nykaa, for example, are Indian billionaire role models for young women.

While some organisations have taken an average of seven years to become Unicorns, recently the time is decreasing as more creators with prior founding or startup expertise enter the game. According to a recent joint publication by Tie & Zinnov titled ‘Covid-19 and the Antifragility of Indian Startup Ecosystem,’ India’s Unicorns will number 100 by 2025.

What does this mean for Indian entrepreneurs, and where do they go from here?

Customers’ allegiance has shifted substantially to digital channels, and while some businesses find this new norm difficult, many startups and enterprises have turned it into an opportunity to gain market share and set industry standards in customer-centricity. According to McKinsey’s research, the pandemic has accelerated digital transformation by up to seven years, and the trend is anticipated to continue as organizations look for strategies to keep up the pace.

When it comes to digital products, the Asia/Pacific area, one of the first to enter the digital era a few decades ago, is now leading the charge and setting the pace for the rest of the world. Startups from the region are leading global platform and solution development advances that:

  • Automate previously manual, time-consuming procedures and activities, such as financial reconciliation and customer contact center operations, to make automated processes the new standard in today’s digital age.
  • Enhance existing digital solutions with additional intelligence and sophistication to improve data collecting, processing, and analytics, resulting in faster and more informed decision making and more desirable business outcomes. Through martech advancements that use data to aid enhance sales and customer service, the advertising and marketing industries have entirely altered themselves.

The way brands communicate with their customers has changed as a result of the digital transformation. The game has changed substantially, with brands no longer attempting to attract customers to their platforms, but rather taking their platforms to where their customers are. Customer expectations for personalization and digital experiences have been raised by live chat and chatbots, among other things. And data that brands could not previously collect via face-to-face interactions is now readily accessible via online interactions with customers, allowing brands to scale and revamp their digital offerings to meet growing customer needs. Customers that are digitally savvy are never restricted by one means of communication, and combining all of them in one profile can improve how they connect with a company, allowing entrepreneurs to provide a more personalised and immersive experience.

Conclusion:

Several startups originated during the technological revolution, challenging the market. As a result, the status quo shifted dramatically, resulting in the formation of new business practices. Others went public, while others developed into successful companies. A pandemic encouraged digital adoption, which was a windfall to digitally-enabled firms. Many investors and marketers are on the hunt for savvy promoters with digitally-driven business models who are willing to invest for the long term to reap real and significant rewards. While venture capitalists invest in digital businesses, IPOs have provided investors with an exit strategy in today’s fast-paced environment. The recent successful offerings of Zomato and Nykaa are excellent instances of digital companies becoming top choices for investors.

 

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