INDIA’S UNICORN BOOM
Ancient Indian legends talk of a nimble, fleet-footed mythological horse-like creature called the ekashringa, or unicorn, taking its name from the single horn on its forehead. The horn, if you drank from it, was said to have magical healing properties. Meanwhile, in the jungle that is today’s business environment, unicorns—defined as technology-driven, disruptive, privately-owned start-up companies valued at over $1 billion (Rs 7,430 crore)—have shown a rare immunity against the waves of the Covid-19 pandemic that have brought most other businesses down to their knees. In 2021, amidst a debilitating Second Wave, India acquired 11 new unicorns, taking the total to 48, the third largest number in the world, after the US and China.
Leading the pack is Byju’s, a Bengaluru-based edtech firm founded by Byju Raveendran, 40, and Divya Gokulnath, 34, in 2011. A completely offline model till about six years ago, Byju’s is now a fully online education company with over 100 million users in India. In June this year, at the peak of the pandemic, its valuation jumped to $16.5 billion (Rs 1.2 lakh crore) after the world’s top investors poured in big funds, making it India’s most valuable unicorn. It is, in fact, what in industry parlance is called a decacorn (commanding a $10 billion or Rs 74,280 crore valuation or more) and is the world’s 11th most valued start-up.
Raveendran, a former mathematics teacher, and his wife Gokulnath have entered the Forbes India Rich List 2020 at #46, with a combined net worth of $3.05 billion or Rs 22,660 crore, sharing space with some of India’s better-known industrialists and the heads of venerable business houses. India’s 48 unicorns now have a total valuation of around $139.7 billion or Rs 10.4 lakh crore, according to the data and analysis provider Venture Intelligence. These unicorns are a ray of sunshine in the otherwise gloomy pandemic-afflicted economy. What explains their rise?
Power of Big Ideas
Behind every unicorn, there seems to be a breakthrough idea. But there is also more
