In India, there are approximately 270 unicorns and unicorns, with approximately 40 of them in industries such as fintech, ecommerce, and logistics having exceeded USD 100 million in revenue by the end of the fiscal year 2022. It took these startups between 5 and 12 years to reach this level of success. The time it takes a company to reach USD 100 million in revenue has decreased significantly over the last decade, from 18 years in 2000 to only 5 years in 2017, as per a media report.
Venture capital has been critical in assisting startups to reach the USD 100 million revenue milestone. Aside from capital, investors add enormous value to the companies they invest in.
Furthermore, the reports says that the VCs’ knowledge of governance, financial prudence, and networks are invaluable to startups. Over the last 15 years (CY08 to CY22), VCs have invested approximately USD 143 billion in the startup ecosystem, which is currently valued at USD 804 billion. At current valuations, it equates to a 4.5x return on investment for VCs.
According to the report, there are approximately 12,000 startups in India, with revenue ranging from Emerging (USD 10 Mn) to Growth Stage (USD 10 – 100 Mn) to Large (USD 100 Mn to >USD 1 Bn). 95 per cent of these are in the emerging category, 3-4 per cent are in the growth stage, and less than 0.5 per cent are large.
Most startups face scaling challenges as they expand. Many are in niche industries, which limits their total addressable market, while others require assistance with product-market fit and unsustainable growth.
Redseer’s toolkit addresses various challenges that startups face on their way to USD 100 million in revenue. According to Rohan Agarwal, Partner, Redseer Strategy Consultants, Redseer’s industry experts help startups scale to desired heights and solve their challenges through customised solutions ranging from TAM expansion to product market fit, to improve profitability and operational efficiency.
Startups in the red ocean market – industries with well-defined market space and industry boundaries – compete fiercely. To stay afloat, they require a distinct competitive advantage.
