In India, the top unicorns—shorthand for startups with valuations of $1 billion or extra—are also the maximum acquisitive. Among different matters, it shows how a lot of these corporations have used mergers and acquisitions (M&As) to scale up hastily in a short period. In comparison, amongst traditional era organizations in India, such offers are few and some distance among. For instance, Quikr, the maximum acquisitive unicorn in India, has made 12 acquisitions in 2016, in line with Tracxn, a generation statistics tracker. In evaluation, India’s biggest tech company, Tata Consultancy Services Ltd, has made only two acquisitions, consistent with Crunchbase records.
Successful acquisitions are also extra common among startups than traditional generation organizations. In 2014, while Flipkart bought Myntra for nearly $330 million, little did the unicorn realize that its acquisition of the united states of America’s most significant online style retailer would bear fruit. Last 12 months, when Walmart bought Flipkart at a valuation of $21 billion, Myntra comprised $five.Five-6.Five billion of the deal price, turning into one of the maximum successful acquisitions via a unicorn in India so far. Over the beyond four years, unicorns have been on an acquisition spree simultaneously as they have been busy elevating capital. About 36 acquisitions had been made via five unicorns.
The difference lies in the size of the deals, where well-known tech companies take the lead. While there are some large purchases by way of the Indian unicorns, a majority of them are inside the variety of $40-50 million or only acquire-hires, wherein a startup is bought in the main for the competencies or knowledge of its personnel and now not the products or offerings it can be offering. Experts say startups along with Quikr, Flipkart, Paytm and OYO Hotels and Homes tend to acquire more significance as their corporations are purchaser-facing and rely upon again-stop technology, including artificial intelligence, gadget getting to know, and information mining that helps in boosting usage revel in. Therefore, the urge for food is to collect startups that are doing regular work in these segments.