The “soonicorn club”, which is a term for start-up businesses that are about to surpass the $1 billion valuation-mark, saw more than 26 start-ups join in the first quarter of CY2023 according to data provided by Tracxn Technologies.
One of the top platforms for private market data tracking businesses throughout the world is called Tracxn. We analyse data to assist our clients in conducting market research on the startup ecosystem, locating transactions that fit their needs, conducting business due diligence, in-depth monitoring of financing rounds, monitoring company news, and monitoring the emergence of trends in various sectors & industries. The clients of Tracxn include venture capitalists (VC), private equity funds (PE), mergers and acquisitions (M&A), and innovation teams from Fortune 500 firms and investment banks. The Tracxn platform is also utilised by a number of governments, accelerators and incubators, and universities to follow innovative businesses and industries. A Software as a Service (“Saas”) platform with a presence in more than 58 countries, Tracxn offers coverage for 1.8+ million businesses through more than 2000 feeds that are segmented by industries, sectors, and sub-sectors. As one of the “Top 100 Analytics Startups of 2015,” Forbes has named Tracxn.
In contrast to the same quarter the year before, when 14 startups exceeded the $1 billion valuation threshold, the first quarter of the calendar year 2023 saw no new unicorns. The first quarter saw more than 26 start-ups enter the soonicorn club, which is a term for start-up businesses that are on the verge of reaching the $1 billion valuation-mark, according to data supplied by Tracxn Technologies with Business Today. While there has been something of a dry spell, this data shows that it hasn’t been completely dry.
A few of the start-ups in the soonicorn club are Absolute, Log9 Materials, Simple Energy, Digio, Charge Zone, and Ecozen Solutions. They are currently valued, respectively, at $500 million, $213 million, $166 million, $129 million, $50 million, and $48 million, according to Tracxn.
The list also included more businesses from various industries, such as The Ayurveda Co., ElectricPe, Bounce, and Beaconstac, to mention a few.
There has been a drop in funding for the start-up ecosystem for some time. The amount raised by Indian startups in the first quarter of 2023 was $2.8 billion, a 75% decrease from the same period in 2022.
The list of start-ups becoming unicorns in India in 2022:
- LEAD School
- Games 24×7
While start-ups like PhonePe, Lenskart, Mintify, Insurance Dekho, FreshtoHome foods, TI Clean Mobility, and KreditBee were able to raise more than $100 million each during this quarter, late-stage funding rose to an all-time high of 79 percent, according to the Tracxn report.
List of some of unicorn start-ups in India 2023:
- Mu Sigma
- ReNew Power
- OYO Rooms
- Ola Cabs
Neha Singh, co-founder of Tracxn Technologies, commented on the highs and lows that this ecosystem has been experiencing, saying to BT, “India’s startup ecosystem has great potential to develop in the future. In terms of funding, it came in third place in 2022 and advanced to second place in the first quarter of 2023. solid fundamentals, solid unit economics, and a clear path to profitability are all characteristics that investors will look for in promising firms. This idea is supported by recent fundraising activities in late-stage startups like Lenskart and PhonePe, and such businesses will continue to attract a lot of investor attention.
After receiving $650 million in consecutive Series D rounds of funding, PhonePe became a member of the decacorn club (startups valued at $10 billion or more). The current market value of the fintech company is $12 billion.