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Indian Startups Soar with 21 Unicorns in 2022

In 2022, India Produced 3x More Unicorns than China

6 January 2023

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Subham Panda

India produced 3X more unicorns than China in 2022.png
  • 21 Indian startups turned unicorns during the year compared to only seven unicorns produced by China in 2022.

  • A 54% decline was seen in India in contrast to a record 44 in 2021.

  • China’s ‘Zero COVID’ policy and the consequent business disruptions contributed to the slowdown in their growth.

In 2022, India has seen a surge in the number of unicorns, with 21 startups achieving unicorn status, despite the startup winters in the country. The total number of unicorns in India has now reached 108.


In comparison, China, the world's second largest startup ecosystem, saw only 7 of its startups achieve $1 billion in valuation over the same period.


According to INC42 reports, India produced 44 unicorns in 2021, surpassing China with a 209% increase in unicorns. China only produced 21 unicorns in the same year.

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China's government policies against COVID, specifically the implementation of a "Zero COVID policy" in 2021, have played a significant role in the country's economic downturn. This approach has caused investors to lose confidence in China's future and has led to decreased investment in the country.


The Indian government's policies on ease of doing business, foreign investment regulations, and incentives such as Startup India tax holidays and production-linked schemes for sectors like electronics and manufacturing have not only helped the startup ecosystem in India survive the winters, but also kept it ahead of its competitors.



When considering the overall picture, it's clear that Chinese startups have secured a significant amount of funding, with $837 Bn raised between 2014 and 2022. In comparison, US startups have raised an even larger amount at $2.1 Tn during the same time period. In contrast, Indian startups have secured significantly less funding, at $136 Bn over the last 8 years.


Despite the global economic slowdown, the growth in India's startup ecosystem paints an optimistic picture for the future. Although there is still much progress to be made in comparison to its competitors, the current trajectory suggests a promising future for India's startup ecosystem.

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