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A video of Ravi Shankar Prasad, who was the IT minister in the Modi government, is going viral in which he is saying that more than 100 companies in the country have become unicorns. But perhaps Rahul Gandhi will not even know what the meaning of unicorn is. Then Ravi Shankar Prasad himself explains what is a Unicorn, but sadly he gets it wrong.
Everyone is making fun of Ravi Shankar Prasad after this video goes viral. People are saying that Ravi Shankar Prasad was considering Rahul Gandhi illiterate, but seeing his knowledge, it seems that he is a student of WhatsApp University.
What is a unicorn?
In fact, Ravi Shankar Prasad told the country's wisest anchor Shweta Singh that unicorn means a company whose revenue is $1 billion. But Unicorns are the startup whose valuation is $1 Billion, not revenue.
Here Ravi Shankar Prasad did not understand the difference between valuation and revenue. In fact, revenue is the income from the total sales of the company and valuation is the amount derived by taking all the assets of that company. A company whose valuation reaches $1 billion is given unicorn status.
Term Unicorn is only used for startups. The term was first used by Aileen Lee, founder of Cowboy Ventures, for companies with a valuation of over $1 billion. Most unicorns are privately owned, which gets their valuation bigger when an established company invests in them.
The startups that exceed the valuation of $10 billion are grouped under the term called decacorn (a super unicorn). Dropbox, SpaceX, and WeWork are some of examples of decacorn.
Now some Facts
According to CB Insights, there are 361 private companies around the world valued at over $1 billion. India has created 18 unicorns in the first quarter of 2022. InMobi is Indiaās first unicorn startup.
There is no doubt that India's startups are rapidly becoming unicorns. But the revenue of most unicorns has decreased, this is also a fact. That is, many unicorns are at a loss at this time. According to details put forth by media platform Entrackrās data tracking platform Fintrackr, only 18 out of the 100 unicorns in India have attained profitability in the last financial year, i.e.FY21. And 57 out of the 100 unicorns are reportedly deep in losses.
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