India Has Added Two New Tech Unicorns In Just The Last Month

2019 is turning out to be great for Indian internet ventures. It’s not even mid-way into the year, and the country has already seen two internet firms achieve unicorn valuations, and at least one more is close to the milestone. On May 06, online grocer BigBasket said it has received $150 million(Rs1,040 crore) in funding from South Korea’s Mirae Asset-Naver Asia Growth Fund, UK’s CDC Group, and existing investor Alibaba, at a valuation of over $1 billion.

The rise of BigBasket and Nykaa is also reflective of evolution in Indian internet businesses, said Sanchit Vir Gogia, founder and CEO of Greyhound Research.

“The companies that we are talking about, be it BigBasket, Nykaa, or Dream 11, are not overnight stars. They have been working their way up quietly for some time,” Gogia said. “BigBasket for one has been investing in the supply chain, logistics and technology for long to reach where it is now.”

Their success in cracking difficult segments, like delivery of perishables in the case of BigBasket, will go a long way in boosting global investors’ confidence in the India story. “Within the grocery space, we will see an emergence of more hyper-local platforms. It’s a big market, one player cannot serve all the pockets,” said Gogia. “A few years down the line, the industry will head for consolidation as is the case with most of the industries.”

[Quartz]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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