India on track to have 50-plus strong ‘Unicorn club’ in 2021: Nasscom-Zinnov report

New Delhi: India saw 12 new unicorns being created in 2020, the highest ever addition in a single year. India is on track to have a 50-plus strong ‘Unicorn club’ in 2021, a Nasscom-Zinnov report said Thursday. Unicorns are start-up companies having valuation of more than USD 1 billion.

The report has been titled ‘Indian Tech Start-up Ecosystem – On the March to Trillion Dollar Digital Economy’. It said the Indian tech start-up base is witnessing a steady growth of 8-10 per cent year-on-year. Over 1,600 tech start-ups were added in 2020.

Although cautiously optimistic, the report said 2021 promises a return to normalcy for the Indian tech start-up ecosystem. Deep-tech and new start-up hubs will continue to grow at 40-45 per cent CAGR, it said.

India is on track to have a 50-plus strong ‘Unicorn club’ in 2021 (from 38 in 2020), and M&A deals and IPO pipeline are also expected to accelerate in 2021, the report added.

The report said over 2,100 start-ups are leveraging deep-tech, up from over 1,600 in 2019, and 20 per cent of the deep-tech start-ups are based outside established start-up hubs. Fintech, health-tech, edtech, agritech and enterprise tech segments are witnessing rapid digital adoption.

“COVID-19 has accelerated digital adoption and the shift to online in the country. This has created new opportunities for tech start-ups that are capitalising on this opportunity with rapid digital acceleration and a shift to SaaS-based solutions,” a statement said.

Deep-tech is also getting deep-rooted into start-ups’ DNA with 19 per cent of the tech start-ups leveraging deep-tech solutions to build product competencies for market expansion, it added.

“The Indian tech start-up ecosystem’s performance in 2020 has demonstrated the resilience and can-do spirit of the Indian entrepreneur. The continued innovation, right decision making and strong investor commitment have positioned the Indian start-up ecosystem as a key contributor in accelerating India’s digital economic growth,” Nasscom president Debjani Ghosh said.

She added that with the continued addition of new start-ups, booming unicorns and increased adoption of deep-tech, the ecosystem shows an even more promising future.