Indian Entrepreneurs creating record

“ You have to see failure as the beginning and the middle , but never entertain it as the end .” –
Jessica Herrin , founder and CEO of Stella & Dot

Every crisis is an opportunity

Though the world is fighting hard against the catastrophic corona virus , Indian Entrepreneurs have
created record in setting up new ventures . There has been a massive 26% surge in the new company
incorporation in FY 21, with 1,55,377 new companies registering in India during FY2020-21
compared with 1,22,721 in FY2019-20. An analysis of the ministry’s data shows that nearly 15,000
companies were registered almost every month in the 2020-21 financial year as opposed to around
10,000 companies, which were registered each month from March 2017 till March 2020.

In the report, Rubix Data Sciences,it was published that the registration of new companies in the
manufacturing sector rose nearly 45 per cent from 23,014 in 2019-20 to 33,483 in 2020-21.

"In the services sector, new company registrations grew by 16 per cent. Remarkably, the number of
new companies registered in agriculture and allied activities grew by a whopping 112 per cent," it
added.

The number of new Limited Liability Partnerships (LLPs) went up around 17 per cent to 42,185 in the
last fiscal year compared to 36,176 in 2019-20 ..

What could be the reason ?

Experts suggest that this could be linked with joblessness in the country.

“This can be attributed to joblessness and unemployment but the trend started much before the
pandemic which is reflected in the data,” says Mahesh Vyas, Managing Director an.

The rise of Unicorns

A “Unicorn” is a privately owned company whose valuation is over 1 billion dollar.

The pandemic also made the country and the world witness the rise in number of Indian
Unicorns , currently India has 65 Unicorn Companies out of which 31 ( the number has
reached this with addition of CoinSwitch Kuber , Licious and Rebel Foods) have been
created in 2021 alone

Sector Wise

Fintech has garnered the highest number of unicorns among sectors - five this year, thus far.
It is closely followed by e-Commerce, SaaS (Software as a Service), marketplace
(manufacturing services, jobs, used cars and handyman services) segments with four
unicorns each, and edtech, NBFC (Non-Banking Financial Companies), B2B (business to
business) sectors with two unicorns each. The other unicorns in 2021’s list belongs in
segments such as gaming, cryptocurrency, logistics services, social media and conversational
messaging.

This trend can be observed in other countries such as the UK and China as well. For instance,
according to data from CB Insights, eight of the nine unicorns that the UK has produced so
far this year, belong in the fintech space. In China as well, the fintech sector leads along with
hardware space with four unicorns each, followed by artificial intelligence, edtech, health,
internet software and services, supply chain, logistics and delivery sectors with three
unicorns each.

On the other hand, data from CB Insights shows that, in the US, the internet software and
services space has garnered the highest number of unicorns (50). Fintech comes a close
second with 49 unicorns, followed by the health segment with 21 unicorns and the artificial
intelligence sector with 15 unicorns.