Q.3 India is witnessing new unicorns emerging every month, which are products of inflated valuations to tap more funds to burn more cash. In context of this, examine the factors driving the emergence if these unicorns and issues with their valuation. (10 Marks)

Mentor’s comment-
  • https://www.thehindu.com/opinion/lead/over-valued-unicorns-in-a-distressed-economy/article37653501.ece
  • In the intro mention the PayTM ipo and fall in the valuation on first day. 
  • In the body mention factors such as rising number of smartphone users and increasing trend towards adoption of technology, role of investors in providing capital etc.
  • In the concerns mention limited population with high income and spending power raising the questions on future earnings. 
  • Conclude by mentioning the need for caution as negative sentiments could harm the economy in long term. 
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project _osiris
project _osiris
1 hour ago

Id0000486418

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