Earlier this month, Razorpay was touted to become India’s fourth payments unicorn. The company is reportedly reportedly Entrackr Razorpay set to be unicorn with up to $150 Mn round led by GIC Read more in talks with existing investors and Singaporean sovereign wealth fund GIC to raise US$150 million at a valuation over US$1 billion. The fresh funding wouldn’t just make it the latest addition to India’s three-dozen-odd unicorn club, but it would also make it Y Combinator’s first Indian unicorn.
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Has Y Combinator failed in India?
Despite investing in over 50 startups in India, Y Combinator doesn’t have a single Indian unicorn in its lineup. Locally-tailored beginnings and an unattractive early investment model may have limited its impact on Indian founders
Y Combinator’s original model offered US$20,000 in return for 7% equity; Sequoia Surge’s US$2 million for 15-20% dilution was more attractive
Startup founders were also required to travel to the US for three months, limiting the pool of applicants to the programme
But the programme also broadened the investment horizon in India; it changed perceptions about ‘fundable startup founders’
The number of Indian startups joining Y Combinator in the last two years has surged to 40 over the last two cohorts