55 unicorns posted Rs 48,300 cr loss in FY22
Several top startups in the ecosystem continue to bleed money, with no respite in sight
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14 e-com startups among heavy loss makers
BharatPe reported $726 million loss in FY22
Flipkart incurred $568 million loss
All eyes now on top startups/unicorns ahead of FY23 results
75% drop in funds for startups during Jan-March 2023
New Delhi: The great Indian startup and unicorn party, which saw record funding volumes in 2020, 2021 and the first half of 2022, appears to be over for now as several top names in the ecosystem continue to bleed money, with no respite in sight in FY23.
At least 55 (74 per cent) from 74 unicorns incurred a cumulative operating loss of $5.9 billion (nearly Rs 48,300 crore) in FY22, according to leading startup covering portal Inc42. Of those heavy loss-making unicorns, 14 were from the e-commerce sector, followed by fintech at 13, and consumer services at six unicorns, the report added.
While Swiggy incurred around $398 million loss in FY22, BharatPe reported $726 million operating loss in FY22. Flipkart incurred $568 million loss and Meesho reported $422 million operating loss. VerSe Innovation reported a loss of $343 million in FY22; ShareChat incurred $377 million and Unacademy $352 million, according to Inc42.
Another unicorn udaan incurred $229 million in FY22 operating losses. The curious case of edtech major BYJU’s continues to haunt millions. The company reported an astounding net loss of over Rs4,588 crore in FY21 on consolidated revenues of Rs2,428 crore. However, the company last year said it registered nearly Rs 9,991 crore in revenues in its FY22 financial results.
Meanwhile, Byju’s is yet to file its FY22 results with the Ministry of Corporate Affairs (MCA). Most of the leading Indian edtech startups have been bleeding money for months now. Some of these loss-making unicorns companies are expected to launch their IPOs soon, but with their income nosediving, the public market route to raise money and stay afloat has become all the more difficult. Indian startups raised a total of $2.8 billion in funds in the first quarter of 2023, a massive 75 per cent decrease compared to the same period in the previous year ($11.9 billion), as rising inflation and interest rates continue to impact investments significantly amid a deepening funding winter.
