India’s startup ecosystem has witnessed phenomenal growth over the past decade. The country now ranks as one of the top hubs for entrepreneurship globally. A key factor driving this growth is the emergence of unicorn startups—young companies valued at over $1 billion. But what’s particularly interesting is that a majority of unicorn founders in India are first-timers. They succeeded on their very first attempt.
According to a study by PrivateCircle Research, 60% of unicorn startup founders in India tasted success with their initial ventures. Out of the 261 unicorn founders analyzed in the report, 29% took two attempts to build their first unicorn. Another 6% needed three tries before they got it right.
First-Timers Leading the Unicorn Pack
The fact that so many unicorn founders succeeded on their first attempt speaks volumes about the innovation and ambition fueling the Indian startup scene. First-time entrepreneurs are often seen as risk-takers. They are individuals who jump into new ventures with fresh ideas, enthusiasm, and determination.
Take, for example, the success stories of Zepto and CRED.
Zepto, a quick commerce startup, was founded by Aadit Palicha and Kaivalya Vohra. Before launching Zepto, the duo experimented with a grocery delivery service called KiranaKart. Although KiranaKart didn’t take off as expected, it laid the groundwork for what Zepto would eventually become.
Kunal Shah, the founder of the fintech unicorn CRED, built and sold Freecharge to Snapdeal before launching CRED. His first venture allowed him to understand the fintech ecosystem better, giving him a solid foundation for his next venture.
Serial Entrepreneurs: Learning Through Failure
While first-timers have made a mark, serial entrepreneurs have also carved out a significant space in the ecosystem. According to the PrivateCircle report, founders who built their second unicorn achieved success in a much shorter time span—a median of just 1.5 years. This is significantly faster than the time it takes to build a first-time unicorn.
Why is the Second Attempt Quicker?
- Experience: Serial entrepreneurs bring valuable experience from their previous ventures. They understand the challenges and know how to navigate through them.
- Network Access: They have better access to networks and connections, which can open up new avenues for funding and partnerships.
- Learning from Mistakes: The failure of previous ventures often provides critical insights. This helps founders avoid repeating the same mistakes.
The case of Vineet Rao, the founder of Dealshare, is a perfect example. He built two companies—SpectraVR and Shopwest—before founding Dealshare. His earlier experiences helped him fine-tune his business strategy, allowing him to scale Dealshare into a billion-dollar company.
Evolution of the Indian Startup Ecosystem
India’s startup ecosystem has evolved significantly over the past few years. In the early days, failure was frowned upon. Entrepreneurs often found it challenging to bounce back after a failed venture. Today, the scenario is different. Failure is no longer seen as a blemish on an entrepreneur’s record. Instead, it’s considered a stepping stone to success.
Investors Have Changed Their Perspective
Venture capitalists (VCs) and investors now actively seek founders who have tasted failure and come back stronger. They view these entrepreneurs as more resilient and adaptable. This shift in perception has allowed more entrepreneurs to take risks, try new ideas, and pivot when necessary.
Serial entrepreneurs, who have been through the highs and lows of running a business, are often seen as possessing a unique set of skills. They bring grit, adaptability, and a deep understanding of what it takes to build a successful company. This is why many VCs prefer to back serial entrepreneurs over first-time founders.
Unicorn Builders: Understanding Their Success
Building a unicorn is no easy feat. It requires not just a brilliant idea but also flawless execution, timing, and a bit of luck. For serial entrepreneurs, these factors are better understood the second or third time around. They are more adept at spotting opportunities, raising capital, and scaling their business.
What Sets Unicorn Builders Apart?
- Resilience: Many unicorn founders have faced failure at some point in their journey. What sets them apart is their ability to bounce back, learn from their mistakes, and keep pushing forward.
- Focus on Customer Needs: Successful founders have a keen sense of what their customers want. They focus on solving real-world problems that have a significant impact.
- Strategic Thinking: Unicorn founders are not just visionaries; they are strategic thinkers. They understand the importance of a solid business model, effective marketing, and robust financial management.
The Role of PrivateCircle’s Study in Understanding Trends
PrivateCircle’s analysis offers deep insights into the trends shaping India’s unicorn landscape. By excluding second and third unicorns started by the same founder, the study shines a spotlight on first-time successes. This approach provides a clearer picture of how new entrants are performing in the ecosystem.
For instance, the report excluded companies like Ola Electric, Krutrim, Xpressbees, Glance, Globalbees, and Oxyzo. These companies are the second or third unicorn ventures started by the same founder. This exclusion helps emphasize the achievements of new founders who have reached the billion-dollar mark.
Embracing Failure: The New Norm
As the Indian startup ecosystem matures, there is a growing acceptance of failure. Founders who have failed in their earlier ventures are no longer viewed as risky investments. Instead, they are seen as entrepreneurs who have honed their skills and are now ready for bigger challenges.
Why This Shift in Attitude?
- Changing Investor Mindset: Investors are now looking beyond just success. They want to back founders who have faced adversity and come out stronger.
- Greater Focus on Long-Term Vision: The focus has shifted from short-term gains to long-term sustainability and impact. Founders who have failed and learned from their mistakes are often better equipped to build companies with a lasting impact.
- Encouragement to Experiment: With a supportive ecosystem, founders are encouraged to experiment, innovate, and take risks. This has led to a more vibrant and dynamic startup landscape.
The Future of Unicorn Startups in India
As India’s startup ecosystem continues to grow, we can expect to see more first-time founders and serial entrepreneurs building unicorns. The lessons they bring from previous ventures will play a crucial role in elevating India’s position in the global startup landscape.
Key Trends to Watch:
- More Serial Entrepreneurs: As the ecosystem matures, the number of serial entrepreneurs will increase. Many founders who have built successful companies will launch new ventures, contributing to the growth of the ecosystem.
- Focus on Sustainable Growth: The emphasis will shift towards sustainable growth models. Founders will focus on building companies that are not just valued at $1 billion but are also profitable and impactful.
- Greater Investor Support: Investors will continue to support founders who have experienced failure. This trend will encourage more entrepreneurs to take risks and innovate.
Final Thoughts
India’s unicorn startup ecosystem is at a fascinating juncture. The rise of first-time founders and serial entrepreneurs showcases the depth of talent and innovation in the country. While first-timers bring fresh ideas and enthusiasm, serial entrepreneurs bring experience, resilience, and the ability to scale quickly.
The changing perception of failure is a crucial factor in this evolution. As the stigma around failure fades, more entrepreneurs will be willing to try, fail, and try again. This willingness to embrace failure will drive more innovation and lead to the creation of more unicorns in the future.
The Indian startup ecosystem’s journey is a testament to the spirit of entrepreneurship. As more founders learn from their failures and come back stronger, they will continue to build companies that not only reach billion-dollar valuations but also make a lasting impact. The future of India’s unicorn landscape looks promising, with more stories of resilience, innovation, and success waiting to unfold.
In the end, whether it’s a first-time founder or a serial entrepreneur, what matters most is the courage to take that first step. The willingness to learn, adapt, and keep pushing forward, even when the odds are against you, is what sets unicorn builders apart from the rest. This relentless pursuit of excellence is what makes India’s startup ecosystem one of the most exciting and dynamic in the world.