A unicorn is a startup (privately owned) with a valuation of $1 billion plus. Aileen Lee in 2013 introduced this term to describe tech startups which were valued at $1 billion plus.

Venture capitalists finance such startups. The valuation is not connected to their financial performance. Some of these may not generate any revenue at all (Pre-Revenue Stage). Even business models of such startups complicate the matters. Some are the pioneers, and hence there is no benchmark for valuation.

They are valued high on account of envisaged faster growth. They preempt the market rivals. There is a possibility of these being acquired by the Big Tech. In fact, they are buying technologies for market synergy. Besides, innovations boost up growth.

The Economic Survey, 2021-22 puts the number of new recognised startups to over 14000. India has now 83 unicorns, most of which are in the services sector. In 2021, 44 startups have achieved unicorn status.

India has become the third larger startup eco-system in the world after the US and China.

Delhi replaced Bangalore as the startup capital of India. Between April 2019 and December 2021, 5000 startups were added to Delhi. In this period, Bangalore had added 4514 startups.

India has more than 61,400 startups recognised by the government as an Jan 10, 2022. Over 14000 new startups have been recognised by the government in 2021. Maharashtra has the highest number of recognised startups at 11,308.