India’s First AI Unicorn

Context

?   Ola group’s AI firm Krutrim is India’s first artificial intelligence unicorn.

?    Krutrim has raised $50 million at a valuation of $1 billion in a funding round

What is a Unicorn?

?   Unicorn is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion.

?   The term was coined to represent the rarity and uniqueness of such companies, much like the mythical creature.

?   Unicorns are often characterized by their rapid growth, disruptive business models, and the ability to attract substantial investment.

Unicorns Of India

?   As of 2023, India is home to 111 unicorns with a total valuation of $349.67 Bn.

?   The year 2021, 2020, and 2019 saw the birth of the maximum number of Indian unicorns.

?   Bengaluru is India’s unicorn capital with the largest number of unicorn headquarters followed by Delhi (NCR) and Mumbai.

?   Traditional  sectors  such  as E-commerce, Fin-tech, E-commerce, Supply Chain & Logistics, Internet Software & Services do dominate the arena but a strong wave of unconventional sectors such as Content, Gaming, Hospitality, Data management & analytics, etc are making their place on the list.

?   Mensa Brands took only 6 months to become a unicorn in 2021, making it one of fastest unicorns in Asia.

Significance of Rise of Unicorns for Indian Economy

?   Job Creation: Unicorns often experience rapid growth, leading to an increase in job opportunities.

?   Innovation and Technology: Their success signifies a thriving ecosystem that fosters innovation, research, and the development of cutting-edge technologies.

?   Foreign Investments: Foreign investments not only provide capital for these companies but also contribute to the overall inflow of foreign capital into the Indian economy, supporting economic growth.

?   Entrepreneurship Ecosystem: The success stories of these companies motivate aspiring entrepreneurs, creating a positive impact on the overall entrepreneurship ecosystem.

?   Global Recognition: Indian unicorns, especially those expanding globally, enhance the global recognition of India as a hub for technology and business innovation.

?   Economic Growth: The success of unicorns contributes to economic growth by adding value to various sectors of the economy.

Measures Taken by Government of India to support Unicorn/Startups

?   Atal Innovation Mission (AIM): The scheme was launched by the government in 2016, and aims to foster innovation as the government creates new programs and policies to assist start-up development in several economic areas.

?   It grants approximately Rs 10 crores to finance firms over five years.

?   Multiplier Grant Scheme (MGS): The Department of Electronics and Information Technology initiated the Multiplier Grant Scheme (MGS) to empower collaborative research and development among industries for the growth of goods and services.

?   The government gives a maximum amount of Rs 2 crore per project for a duration of less than two years.

?   Dairy   Entrepreneurship Development Scheme (DEDS): The Department of Animal Husbandry, Fisheries, and Dairying has launched the DEDS scheme, which aims to create self-employment in the dairy sector.

?   The activities include milk production, procurement, preservation, marketing, etc.

?   Startup India Initiative: This is one of the most popular government schemes for startups in India. The Startup India Initiative aims to provide tax benefits to entrepreneurs for over five years.

?   Startup India Seed Fund Scheme: The government of India introduced this scheme in 2021 to assist early-stage startups.