Establishing The Relationship Between Profitability and Growth of Unicorns in India

This paper attempts to analyze if there is any relationship between profitability and the growth of Indian unicorns. Indian unicorns have attracted worldwide attention by getting huge investments and a growing club of over 100 unicorns. Indian unicorns have raised more than $100 Bn in funding as reported by INC42.com, a unicorn tracker website. The fact is that only one-third of Indian unicorns are profitable. As the Indian unicorns show contrasting characteristics of attracting huge funds with negative profitability, researchers are curious to find the peculiar phenomenon. For this study, the financial data of the ten listed unicorns were taken and analysis was made with the help of the Pearson correlation matrix. The result shows that negative EBIT does not significantly influence the growth of numbers and attracting investments. Our findings show that the impact of the interest and tax burden is minimal on the growth of Unicorns in India.