Indian tech startups added a record number of unicorns in 2020: Nasscom

Indian tech startups added a record number of unicorns in 2020, the highest ever in a calendar year, according to a Nasscom report.

The tech ecosystem added 12 unicorns, 67% with a global focus, and another major chunk with a business-to-business focus, possibly signalling a shift away from consumer internet companies that constitute the majority of unicorns.

Nearly 55 potential unicorns with total funding of over $50 million are in the pipeline, the report said. The total funding, however, fell from $6.6 billion in 2019 to $3.5 billion in 2020.


Remote work helped startups reduce burn and accelerated the growth of new tech hubs. Enterprises in fintech, health tech, agri-tech, and edtech flourished during the pandemic. Edtech users grew almost two times and online health consultations increased by 2.2x as lockdowns restricted movement and things shifted online.

Nasscom expects investor sentiment to recover with H2 2020 funding up by 90% over H1 2020.

In 2020, the tech startup ecosystem boom was driven by digital maturity, a shift to SaaS-based solutions, and initiatives like Vocal for Local and Amanirbhar Bharat initiatives, the report said, adding that founders are turning the crisis into an opportunity by targeting overseas markets.