#3RD LARGEST ECOSYSTEM GLOBALLY
What is Startup?
The amended provisions by the
Department for Promotion of
Industry and Internal Trade (DPIIT)
say a company will be recognised as
a startup till 10 years from its date of
incorporation, with a revenue
threshold of Rs. 100 Crore.
WHAT IS UNICORN?
Unicorn is a term used in the
venture capital industry to describe
a privately held startup company
with a value of over $1 billion. The
term was coined by a venture
capitalist and a seed investor,
Aileen Lee.

 Growth of Startups
The startup ecosystem of India where around 60,000 new startups have been
established since 2016, across 56 different sectors in the country, has also
managed to create over 6 lakh job opportunities in the country. This has
even got a special mention from President Ram Nath Kovind in his
Presidential address on 31 January 2022, where he emphasized the new
opportunities that the startups of India are ushering in.

As of 09th February 2022, India is home to

88 unicorns with a total valuation of $ 295.99
Bn. Out of the total number of unicorns, 44
unicorns with a total valuation of $ 94.37 Bn
were born in 2021 and 7 unicorns with a
total valuation of $ 9.12 Bn were born in
2022.
What triggered the
Unicorn rush in
2021?
While work from home during the pandemic fueled the growth of digital businesses in India, the
incident also resulted in a long unicorn list. Investor attraction areas-

THRIVING DIGITAL PAYMENTS ECOSYSTEM

LARGE SMARTPHONE USER BASE

DIGITAL-FIRST BUSINESS MODELS

BENGALURU IS INDIA’S UNICORN CAPITAL .
MENSA BRANDS TOOK ONLY 6 MONTHS TO BECOME A
UNICORN IN 2021.
SOME BIG UNICORN NAMES THAT OFFERED AN IPO
INCLUDE ZOMATO, NYKAA, POLICYBAZAAR, PAYTM AND
FRESHWORKS.
NOIDA-BASED HEALTHTECH STARTUP INNOVACCER HAS
BECOME THE FIRST INDIAN UNICORN IN THE
HEALTHCARE SECTOR CURRENTLY VALUED AT $ 1.3 BN.
MEESHO, BACKED BY FACEBOOK, HAS BECOME THE FIRST
INDIAN SOCIAL COMMERCE STARTUP TO ENTER THE
UNICORN CLUB VALUED AT $ 2.1 BN.
INDIA HAS FOUR STARTUPS NAMELY, FLIPKART, BYJU’S,
PAYTM AND SWIGGY, ADDED IN DECACORN COHORT.
 IPO
Initial Public Offering

An initial public offering (IPO) refers to the

process of offering shares of a private
corporation to the public in a new stock
issuance.

If a private company wants to raise money

from the public , then it has to register in
the list of stock market.
 Why IPO?
1. Expansion of company - when a company wants to expand ,then it
requires a lot of money.

2. Pare Debt- if the company has taken any loans in the past or has some
other liabilities and want to finish them up , then it can be paid off bt the
funds raised by IPO.

3.Exit to previous investors- when the

company getslisted onstock exchange,
then the liquidity increases because of many investors.

 IPO PROCESS
1.Hire an investment bank -
2. Due diligence and filings - the process of due diligence and filings include:
a) underwriting ( firm commitment)
b)herring prospectus ( includes business and promoter details , competetive
advantage, capital structure, future business plans , risks and opputunities, past
financial data )
c) complaince and filings ( includes SEBI guidelines
Comapnies Act )

 3. Pricing - the investment bank puts a valuation to the company .

4.Distribution- in distribution the issueis sold to various institutes :

retail investors , non-institutional investors, qualified institutes.
5. Application Process

6. Share Allotment

7. Listing on Stock Exchange