The number of unicorns in India rose to 83 in 2021, when a record 44 Indian firms were valued at $1 billion or more.
Tracking from the international startup tracking platform Tracxn shows that venture funding into Indian businesses reached a record of $41.6 billion in 2021.
However, things have since changed.
After reaching a record high of $7 billion in 2021, financing for Indian startups fell by 83% in 2023 as a result of a decline in global venture capital due to growing macroeconomic uncertainty, including higher interest rates.
After investors pulled out of Byju in many rounds, the company’s worth fell by 95%. According to media reports, BlackRock reduced its investment in Byju’s previous month, resulting in the most recent cut of $1 billion.
Early in February, Paytm’s market value had dropped by $2.5 billion due to the regulatory crackdown on Paytm Payments Bank. Compared to its almost $20 billion valuation upon listing in November 2021, that is a significant drop. According to Wadhwani of IvyCap Ventures, “there is no doubt that valuations were very stretched in 2021 and early 2022.” “The market experienced significant stress as a result of certain companies’ IPOs at valuations that were simply unsustainable.”
