The Growth of Indian Startups in 2022
The graph shows that Indian startups have boomed since 2018, with an investment from $6.6 billion to $36 billion.
The last decade has faced significant changes in the growth of startups in India- from founding a new startup to global investment. The year 2021 has brought a drastic change in the entrepreneurial world. Many entrepreneurs have dived into the business opportunities with their ideas, hoping to get a favorable outcome. While some have a taste of success, others cannot hold on to it.
According to Financial Express and Economic Surveys, India has over 61,000 surveys recognized by the DPIIT, and more than 14000 has identified in the fiscal year of 2022 from only 735 in 2016-17. According to the data, India has become the third largest “startup hub” after the US and China countries, with 44 out of 83 companies getting the title of unicorn company within 2021 only.
Today we’ll discuss the significant point necessary for students while growing up. “ “What is a startup?”, “How a startup can become a huge success, what is the reason for its failure,” and some examples of growing startups of 2022.
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A startup is a firm beginning the growth process with a new product or a business idea as a solution to the problem. The startup founders have invested in their businesses and seek investment from others. This is the significant difference between a startup and a business; businesses do not involve a new/unique product like a startup.
Success has only one mantra, “Choose the right idea, with the right direction and time.” You can’t get win overnight. It needs patience, perseverance, and right mindfulness.
A successful startup is a blend of:
- A unique idea that is creative, exciting, and a market need.
- Mentors who can guide the team through tough times
- Resourceful managers with experience who can bring out the best in the team and employees
- The will to achieve their goals even in the toughest of times.
What makes it a failure:
- Not having enough resources even for the survival
- Quitting too early, without being persistent towards their goals
- Wrong ideology about the market and the competitors
- Fear of taking risks and losses
India has become the 3rd largest ecosystem of “startup hubs,” with over 61000 startups recognized by the DPIIT. Innovation in India is not bounded to specific sectors. If you look at the growth rate and the stats correctly, you’ll find out the growth and innovation rate is comparatively higher than in most countries.
- FYI 2016-17, almost one unicorn company has been added to the list every year, but now, in only 4 years, the stats has gone up with a growth rate of 65%.
- They’re also helping in large-scale employment, thriving at a fast pace, and assisting in the country's economic growth.
- India has generated over 100 unicorn companies, from which 44 were born in 2021 and more than 19 companies in 2022.
- The covid 19 and the government have risen many opportunities for the people to generate room for innovation.
- Physics Wallah
An Indian edtech startup, Physics wallah, also known as PW, is India’s 101st startup with a valuation of over $ 1 billion. The Noida-based edtech startup got a series A funding of $100 million from Westbridge Capital, and GSV revenue made it India's 7th largest edtech startup.
It is an AI and advanced solution startup, becoming the first unicorn startup company of 2022. The Private Equity round saw the funding of $360 million from TGP Capital Asia and the secondary funds raised from the share purchased from the funds provided by Apax Partners.
- One Card
Founded in 2018 by Anurag Sinha, Rupesh Kumar, and Vibhav Hathi, it is a fintech startup that provides free credit scores to its users. This Pune-based startup has become the 104th unicorn company after it raised $100 million from the funding Series D round.
It is an edtech startup founded by Sumeet Mehta and Smita Deorah in 2012. With a valuation of over $ 1 billion. The Mumbai-based edtech startup got funding of $100 million from Westbridge Capital and GSV and around $166 million from the funding of 5 rounds. This edtech startup helps the schools to combine technology and pedagogy into a unique learning experience for the students.
The biggest rival of Nykaa, Purplle, entered the market by hosting 1000+ brands on its platform. With the funding of $33 million from Paramak Ventures, Premji Invest, Blume Ventures, and Kedaara, the company's valuation has gone up to $1.1 billion from the overall Series E funding, adding it to a list of unicorn companies.
It has become the 9th startup to get into the unicorn club of 2022. Founded by Tanmai Gopal and Rajoshi Ghosh in 2018, the company raised over $100 million in February 2022 from the Series C round of funding. It has raised around $136.6 million to date.
- Cred Avenue
The Chennai-based startup has become the 10th startup to get into the unicorn club of 2022. Founded by Gaurav Kumar in 2017, it's a fintech startup that connects the enterprise with lenders and investors. With a valuation of over $1.1 billion, it has raised $136 million from New York-based Insight Partners from the Series B round of funding.
It is a Bangalore-based neo-banking startup getting on the 100th unicorn in the list of startups after raising $50 million from IIFL. Founded by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko, and Deena Jacob in 2017, it offers business banking, payment, and other banking services to consumers.
The founder of Physics wallah, Mr. Alakh Pandey, started his journey of teaching in 2014. Still, he posted his first video in 2016 with a vision to provide education at the lowest price so that every student can study and achieve their dreams. In this journey, the co-founder of Physicswallah, Mr. Prateek Maheshwari, has supported him through thick and thin.
With his unique teaching style and techniques, he became famous in no time with his hard work and dedication, and his youtube channel became a big hit. He used to teach all the students in class from 6th to 12th and prepare the students for the Entrance Level Examination like JEE and NEET when he left the institute to focus on his youtube channel.
In 2020, they developed their app with the name Physicswallah, the same pen name they’re using with the youtube channel. In the app, they provided live+recorded lectures, doubt sessions, and offline classes as well. After achieving his dream, his next goal is to offer lessons in 8 other languages so that students in every corner of the country can study without facing much trouble.
Until 2022, he used the company's revenue from Youtube channels. On June 6, 2022, he got the A series funding of $100 million from Westbridge Capital and GSV revenue making him a self-made millionaire and making Physics wallah a Unicorn Company.
With this story, we want to tell you that your study background does not matter. If you’re persistent toward your goal, no matter how many hurdles you face, you’ll achieve your goal in no time.
The list goes on and on if we go with every unicorn company in India. We told you that mainly to make you understand the term “startup.” It defines how there’s no age limit for starting a business. You can create your own business anytime soon as possible to old age. All you need is a good idea, timing, and direction to move forward.
The next goal is to move from the aim of unicorn companies to the decacorn companies from the view of the global startup ecosystem. Decacorn is a startup firm with a more than $10 billion valuation. We hope you understand the concept of startup very clearly.
Q1. How many startups are there in India?
Ans. There're more than 70000 thousand startups in India.
Q2. Are startups increasing in India?
Ans. Yes, the startups are rapidly growing in India, from 735 in 2016 to more than 70000 in 2022.
Q3. Which sector has the most startups in India?
Ans. The e-commerce sector has the most startups in India with rapid growth.
Q4. Do startups earn profit?
Ans. It’ll take 2-3 years for a business to be built and get profitable. But after surpassing the initial stage the startup will eventually give you the profits.