India set to take China’s crown as next Unicorn hub
The search for the next Unicorn company – a private firm with a valuation of over $1bn – is a never ending quest for investors the world over, promising eye-watering returns for those who find them, something that JPIN VCATS – a startup investment bank – specialise in. For many years the place to look was the US – currently housing 154 Unicorns – or China which is home to over 137. There is, however, a growing concern that legislative changes in China could impact the industry, which has given investors pause for thought.
This may have opened the door for another powerhouse emerging market to step up in the global investment market. India is currently home to 57 Unicorns, and in 2020 received a record amount of private equity and venture capital investment – $47.6bn worth. Another factor that may benefit the Indian startup ecosystem is the large number of customers currently unbanked or yet to be connected to the internet, with estimates putting this number at over 500 million.
This has left many feeling that India is in a prime position to benefit from foreign investment especially with growing sentiment around emerging markets investment. In fact, national research from JPIN VCATS shows that 13.8 million investors in the UK alone are looking to invest in emerging markets such as India in 2021.
Gaurav Singh, founder of JPIN VCATS comments: “India is ready to challenge China as the home of Unicorn companies outside of the US in the next ten years. The incredible potential that exists in a country of over a billion people which is growing at such a pace is tremendously exciting to investors the world over. Already there are nearly three times as many Unicorns in India as in the UK and as startups continue to capitalise on the huge addressable market that exists this could increase.
“Some of the startups we have invested in have the potential to reach unicorn status over the next few years and our goal is not only to help these firms reach their potential through sourcing growth finance but also to offer investors access to the returns available from this sector. We are hugely excited to see the progress made in the next few years and beyond.”