Homestartup News

Resilience and value-creation could be the watchwords for startups in 2022

This article is more than 6 month old.

Resilience and value-creation could be the watchwords for startups in 2022

Mini

Nearly nine companies in the fin-tech space turned unicorns this year. This tally was closely followed by start-ups in the ed-tech and cryptocurrency sectors.

Resilience and value-creation could be the watchwords for startups in 2022
In late November, the number of start-ups in India that joined the Unicorn club (companies valued at above $ 1 billion) this year alone touched 41. The number is significant for many reasons. For a start, it is a whopping 124 percent more than the total number of unicorns (33) that the country saw in the entire decade gone by.
However, more significantly, the sky-high valuations of India's unicorns signal a coming-of-age for start-ups that have always promised to deliver. Experts now say the coming years could only see the number of unicorns and valuations of start-ups in general skyrocket in a whole new orbit.
Several start-up founders believe that fin-tech and ed-tech could be the sectors to watch out for, in 2022. "Fin-tech, ed-tech and food tech will see strong growth in the next few years," says Upasana Taku, Co-founder and COO of digital payments firm, Mobikwik. "I expect to see more unicorns and better valuations in due course," he adds.
Nearly nine companies in the fin-tech space turned unicorns this year. This tally was closely followed by start-ups in the ed-tech and cryptocurrency sectors. However, the sheer number of companies joining the unicorn club has amazed observers.
"India is finally coming together, and the way the country has bounced back from the COVID second wave is commendable — more so the start-up ecosystem," says Zia Shiekh, Vice President of the Seed Transformation Network (STN), South Asia, "It's been an amazing turnaround from six months ago when things were looking bleak."
Mobikwik is itself in the middle of carving a path to going public. In a recent interview with CNBC-TV18, Upasana told CNBC-TV18 that Mobikwik was looking at an IPO "as soon as possible" in the New Year. Upasana also spoke at the Seed Transformation Network's South Asia Conclave in Chennai, where she revisited some of her highpoints and the many challenges that came with running a successful Indian start-up.
The promise that lies with fin-tech and food tech notwithstanding, some experts believe that growth for Indian start-ups could be sector agnostic. "We see potential and promise in all sectors — our portfolio ranges from manufacturing, tech, hospitality, services, education and energy," says Davis Albohm, Director at the Stanford Institute for Innovation In Developing Economies (SEED), "I can say that we are indeed seeing growth potential in all sectors."
With valuations hitting the roof, fears of a bubble have often arisen. These apprehensions are not misplaced. In fact, some experts agree that several start-ups may be overvalued, but TVS Capital's Gopal Srinivasan says staying grounded could hold the key to running a good business.
"Start-ups must have rationale and restraint as euphoria is the worst enemy in good times," says Srinivasan, who is Chairman and Managing Director, TVS Capital Fund. "I believe value-creation will be the catchphrase of the future as opposed to valuation," he adds, "Nearly 20 to 30 percent of unicorns could fail and investors expect this failure — they put together a portfolio of companies assuming some to be failures."
What is no doubt encouraging though, is that Indian venture-capital funding is still only scratching at the surface. "Indian venture capital is merely two percent of the country's GDP; so it isn't enough — India needs more," Srinivasan says, "Yeh Dil Maange More is all that comes to mind when I think of the future."
next story

Market Movers

Currency

CompanyPriceChng%Chng