Bengaluru-based neobanking startup Open becomes the country’s 100th unicorn after raising $50 Mn from IIFL
NEW DELHI, May 6 (The CONNECT) - The wave of Unicorns in India has soared to new heights as the country witnessed the birth of its 100th Unicorn on 2nd May 2022.
Today, 1 out of every 10 unicorns globally have been born in India.
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Piyush Goyal highlighted the achievement in a tweet: India Hits A Century In Style! 💯Bengaluru-based startup become country's 100th Unicorn.🦄India = Ideas + Innovation + Investments
The term ‘Unicorn’ refers to the rarest of the rare startups who become Unicorns attaining a valuation of more than USD 1 billion. The Indian Startup Ecosystem, the third-largest in the world in number of Unicorns, as of 5th May 2022, is home to 100 unicorns with a total valuation of USD 332.7 billion.
2021 experienced a huge surge in the number of unicorns, registering a total of 44 startups entering the Unicorn club through the year with a total valuation of USD 93 billion.
Goyal attached this story to his tweet:
Bengaluru-based neobanking startup Open becomes the country’s 100th unicorn after raising $50 Mn from IIFL. The round also saw participation from its existing investors including Singapore’s sovereign wealth fund Temasek, US hedge fund Tiger Global, and 3one4 Capital.
The latest funding helped Open’s valuation soar past the $1 Bn mark.
The fresh strategic infusion from Ola’s backer IIFL will help Open to accelerate its product offerings on SME lending. The startup at present is gearing for the launch of three new products in the SME lending space. The three new products would be :
Open Flo – a revenue-based financing product for ecommerce businesses
Open Settl – an early settlement credit offering
Open Capital – working capital lending offering for SMEs.
The startup claims to disburse $1 Bn in lending through these new lines of products in the next 12 months.
Meanwhile, an official statement from the Commerce Ministry said, in the first four months of 2022, India has given birth to 14 unicorns with a total valuation of USD 18.9 billion.
The entrepreneurial spirit exists throughout the length and breadth of the country and is evident by the spread of the Department for Promotion of Industry and Internal Trade (DPIIT) recognized startups across 647 Indian districts encompassing all 36 States and Union Territories.
Since the launch of the Startup India initiative on 16th January 2016, more than 69,000 startups have been recognized in the country till 2nd May 2022. Innovation in India is not just limited to certain sectors; we have recognized startups solving problems in 56 diverse sectors with 13% from IT services, 9% healthcare and life sciences, 7% education, 5% professional and commercial services, 5% agriculture, and 5% food & beverages.
While every startup has its unique journey to becoming a unicorn, the minimum and maximum time taken by a startup to become a unicorn in India are 6 months and 26 years, respectively. Till FY 2016-17, approximately one unicorn was being added every year. Over the past four years (since FY 2017-18), this number has been increasing exponentially, with a whopping 66% Year-on-Year growth in the number of additional unicorns being added every year.
As we hit the milestone of a century in Indian unicorns, the homegrown startup ecosystem continues to work effectively towards the mission of self-reliance and self-sustainability as they have been in the past. The vision of Atmanirbhar Bharat is rooted deeply in the Startup Ecosystem and shall continue to prevail in the coming years.