Indian Startups News: Indian startups continue to create value and wealth despite pandemic: PM Modi
“It’s a matter of pride for every Indian…even during the global pandemic, our startups have created wealth and value,” Modi said during his 89th Mann Ki Baat radio address to the nation on Sunday.
He also said startups are expected to show higher growth in the coming years.
“An important thing to note here is that this startup ecosystem reflects the spirit of the new India,” the Prime Minister added.
Last year was a record high for startups, with 44 new entrants into the unicorn club, or those private companies with a valuation of $1 billion or more.
“Of the total number of unicorns in India, about 40 were created last year and about 14 were made in the last three or four months,” Modi said.
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In May, India became home to 100 unicorns worth a total of $332.7 billion.
Neo-banking platform Open recently became the country’s 100th unicorn.
The Department of Trade and Industry said at the time that one in 10 unicorns in the world was born in India.
During the January-March period, approximately 75 startups were also added to the soonicorn list, or companies likely to reach a $1 billion valuation in the near future.
The top 5 soon-to-be unicorns, as identified by data and research firm Tracxn, were Blinkit, Plum, Airmeet, Atlan, and Lambda Test.
Modi said unicorns in India are diversifying and spreading across sectors and the country itself.
“Indian startups work in e-commerce, fintech, edtech, biotech and many different sectors…entrepreneurs also come from small towns, which shows that in India anyone can innovate and create wealth,” he added.
Modi also said the startup ecosystem needs the right mentorship at the right stages.
He praised the founder of tech startup Zoho Corp, Sridhar Vembu, and the founder of social enterprise 1Bridge, Madan Padaki, for not only building great startups, but also nurturing entrepreneurs in rural India.
The Prime Minister’s praise comes at a time when India’s startup ecosystem is under pressure, with a
slowdown in late-stage and growth-stage funding following a global technological meltdown. In March and April, only four unicorns were minted in India, compared to 10 in the same period last year.
Last week, Silicon Valley-based startup accelerator Y Combinator issued a warning to all founders in its portfolio, telling them to plan for the worst amid a noticeable slowdown in the fundraising market. funds.
Sequoia Capital also issued a notice to its portfolio companies calling the current market downturn a “crucible moment.”
In its 51-page memo, the blue-chip venture capital firm told the founders not to expect a quick recovery from current market conditions.