The world’s biggest investors, including SoftBank, Tiger Global, Temasek Holdings and Falcon Edge, are pouring money into Indian startups, churning out unicorns at a record speed and at eye-watering valuations.
Still, some are sceptical of the steep valuations since most of these unicorns continue burning cash and are yet to turn profitable.
Rishi Aswani, managing director in the alternative asset advisory group at Duff and Phelps, believes investors are willing to offer high valuations “Where they have conviction around the founders and management teams’ ability to create a moat that is defensible for a good period of time”.
[Via]
