- 100 unicorns for giving jobs to millions
- The launch of the Unified Payments Interface (UPI), starts this initiative
- Job creation has had its own positive multiplier effect on poor households.
100 unicorns from India have created millions of jobs the main role has been done by infrastructure developments especially low-cost data and the United payment interface (UPI) for this process completes.
In the recent six years, Prime Minister Narendra Modi has set up the Startup India Initiative, which is a combination that has helped us in fl some of the brightest minds in the country to successfully start out on their journeys toward entrepreneurship.
Continuous efforts from the government to help the startup ecosystem have seen a huge increase in the number of identified startups from 726 in FY 2017 to 66,359 in FY 2022, as suggested by March 21, 2022 reports.
Recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, these startups were responsible for job creation in excess of 7.07 lakh. This is a huge increase from the 48,000 recognized startups that employed close to 5.50 lakh people until June 2021.
The 100 unicorns of India have created an average of 3,489 full-time jobs, to date they have done their part. While 34 unicorns have created under 1,000 jobs ranging from 100 to 854 and the remaining 66 have created 2.83 million out of the 2.84 million jobs.
The founders behind the face of The Unicorns
Among the 66 unicorns, the top 10 have a major share of the 2.58 million jobs, responsible for 90.5 percent of the total.
- 1.5 million drivers in its ecosystem
- 12,000 employees account for 53 percent of the total jobs created.
- 3.5 lakh delivery partners
- 4,259 employees,
- Represent 12.4 percent of the total job creation.
- Flipkart (7.85 percent)
- Swiggy (7.19 percent)
- and Delhivery (3.10 percent)
complete the top 5 unicorns on the job creation list.
The launch of the Unified Payments Interface (UPI), the initiative of the PM Modi-led National Democratic Alliance government starting in 2016 actually started the whole process of job creation.
In a February 2021 report by UBS Securities Asia, analysts said that the Indian government had launched the UPI-based payment system with no merchant discount rate, or MDR. And UPI in India processed 11 billion transactions with a total gross merchandise value (GMV) of $373 billion in 2020, compared with $287 billion in 2019.
An increase was shown as on March 29 this year, the National Payments Corporation of India (NPCI) recorded UPI transactions worth $1.09 trillion (or Rs 83.45 lakh crore) in FY 2022, exceeding the Rs 41 lakh crore reported during FY 2021.
UPI has been a strong increase factor for tech startups providing internet-based products and services to consumers beyond the metropolitan cities. Growing internet in every corner of the world has also helped Indian startups grow beyond metros and Tier-I cities. TRAI (Telecom Regulatory Authority of India) data reveals that India has more than 1.14 billion wireless telecom subscribers as of March 2022. Among these 624.23 million are Urban subscribers, and 517.86 million subscribers were from rural India.
According to an August 2019 analytical report on wireless data service in India by TRAI, Internet spread has also been supported by sustained government efforts to bring down the average cost of data which was at Rs 11.78 per GB during the year 2018, compared with Rs 226 per GB in 2015, In 2020, the data cost reduced further to Rs 10.9 per GB.
Lower data costs and cheaper smartphones have enabled drivers and delivery partners to join the startup workforce in big numbers.
Job creation has its own positive multiplier effect on poor households too. A survey-based research report from Tata Institute of Social Sciences (TISS), Hyderabad, titled Understanding food delivery platform: Delivery persons’ perspective highlighted that “there is not much difference in the average net income of delivery partners whether working full-time or part-time.”
While full-time delivery partners managed to create a monthly income of Rs 15,500-35,500 per month, part-time workers managed to draw between Rs 14,647-34,000 per month.
TISS Hyderabad researchers asked the delivery partners about the way their family sees their work. And, 56 percent of the respondents gave a positive response. Clearly, job creation for such households has a strong potential to free them from poverty and also improve their living standards. As far as the question of dignity at work for delivery persons is concerned.
The 100 unicorns of India are clearly on a fast track with a combined valuation of $331 billion and a total fundraise of $62.9 billion since 2011. While 2021 saw a record 44 startups join the elite billion-dollar-valuation club, in 2022 we already have 15 new entries to the grand unicorn club to date.
Their numbers are going to increase as venture capital firm Iron Pillar has said that India is on track to have over 250 unicorns by 2025. The burgeoning startup ecosystem and the rising number of unicorns will be very big supports for PM Modi’s Aatmanirbhar Bharat ambitions.