{"id":11453,"date":"2022-06-30T12:28:07","date_gmt":"2022-06-30T06:58:07","guid":{"rendered":"https:\/\/payu.in\/blog\/?p=11453"},"modified":"2025-11-27T15:45:50","modified_gmt":"2025-11-27T10:15:50","slug":"what-is-a-unicorn-startup-meaning-valuation-stages","status":"publish","type":"post","link":"https:\/\/payu.in\/blog\/what-is-a-unicorn-startup-meaning-valuation-stages\/","title":{"rendered":"What Is A Unicorn Startup? \u2013 Meaning, Valuation & Stages"},"content":{"rendered":"\n

This is the decade of startups!! As per a report by the Business Standard<\/a>, startups in India grew from a conservative 726 in FY 2016-17 to a staggering 65,861 in FY 2021-22. This has been a tremendous boost and a display of India\u2019s capabilities to innovate and lead. But what\u2019s more interesting is the fact that India is the third-largest in the world with 100+ unicorns. As per the Ministry of Commerce and Industry, 1 out of every 10 unicorns in the world is born in India. People often ask what unicorn means<\/strong> and how a company can become a unicorn startup in India<\/strong>. Find out here!<\/p>\n\n\n\n

Unicorn Meaning<\/strong><\/h2>\n\n\n\n

Unicorn means a privately held startup company that has achieved a valuation of $ 1 billion. In Indian currency terms, that\u2019s roughly around Rs. 7500 crores. That\u2019s a huge valuation for any privately held company.<\/p>\n\n\n\n

Becoming a unicorn is a dream for all the startups and a great milestone to achieve. InMobi, a mobile advertising startup, <\/strong>became the first unicorn startup in India<\/strong> back in 2011. After 11 years, India gets its 100th<\/sup> unicorn with the neo banking fintech portal \u2018Open\u2019 entering the elite club.<\/p>\n\n\n\n

How Are Unicorns Valued?<\/strong><\/h2>\n\n\n\n

Now that we have understood the unicorn meaning in entrepreneurship<\/strong>, how is unicorn status achieved? How are such high valuations achieved by unicorns?<\/p>\n\n\n\n

The valuation of unicorns is usually determined by the investors and venture capitalists that have participated in the financing rounds of the company. Several factors interplay while determining the valuation of the unicorn. One might wonder how is it possible for even the presently loss-making startups to attain such a high valuation?<\/p>\n\n\n\n

The valuation of a unicorn is not solely based on its current performance and profitability.  It involves long-term forecasts and analysis of its financial model. Here are some of the reasons for unicorns achieving such high valuation:<\/p>\n\n\n\n