As many as 55 (74%) out of the 74 unicorns, analysed by Inc42, incurred a cumulative operating loss of $5.9 Bn in FY22.
With a median expenditure-to-revenue ratio of 1.5, the 55 loss-making unicorns burned INR 1.5 to generate INR 1 in revenue in FY22
Of the 55 loss-making unicorns in FY22, 14 were from the ecommerce sector alone, followed by fintech at 13, and consumer services at 6 unicorns.
The race to enter India’s highly coveted unicorn club seems to have finally paused. Amid the funding winter, no new startup has been able to secure the unicorn tag after Tata 1 MG entered the club of 108 unicorns in September 2022.
Further, what is disheartening is that in the first two months of 2023 (January and February), the number of mega deals stood at only five, as compared to 23 such deals in the same period a year ago. Overall, Indian startups raised around $1.6 Bn in January and F
