A record 25 upcoming unicorns dropped out of the Hurun India Future Unicorn Index 2024, reflecting the fallout of the funding winter that led to corrections in valuations in the Indian startup ecosystem.
According to the Hurun India report released on Thursday, only three startups turned unicorns this year (valuation of over $1 billion each), including quick commerce startup Zepto, fintech startup InCred Finance, and logistics startup Porter.
The list categorises startups as unicorns — startups founded after 2000 with a valuation of $1 billion); gazelles — startups that are most likely to turn unicorn in the next three years; and cheetahs — startups that could turn unicorn in the next five years.
SaaS and HR tech startup Darwinbox, which was a unicorn earlier, was demoted as gazelle in 2024.
While edtech startup Leap Scholar, fintech startup MoneyView, and agritech startup Country Delight are the most valuable gazelles this year, fintech startup Juspay is the most valuable cheetah.
Around five gazelles and 20 cheetahs dropped out of the list this year.
Overall, India is currently home to 67 unicorns, 46 gazelles, and 106 cheetahs, as against 68 unicorns, 51 gazelles, and 96 cheetahs in the 2023 index. There are 38 new entrants — seven gazelles and 31 cheetahs — in this year’s list.
Sectors in focus
The Unicorn Index 2024 stated that Peak XV partners, which has invested in 47 probable unicorns, is the most active investor, followed by Accel with stakes in 25 future unicorns.
India’s future unicorns are currently worth $58 billion, with an increase of 1.8 per cent over last year. This year’s index featured significant advancements. Ixigo, a former cheetah, went public with a 48 per cent premium.
The Unicorn Index 2024 noted that there are 152 future Indian unicorns across 31 cities. Most of them were set up in 2015, selling software and services, and 18 per cent sell physical products. Around 44 per cent sell to businesses, while 56 per cent are consumer-facing, it said.
In terms of sectors, these future unicorns are in financial services, business management solutions, education, and healthcare.
It noted that Bengaluru contined to be the future unicorn capital as it is home to 46 probale unicorns, followed by Delhi NCR (29) and Mumbai (19).
Turning point
“There is an increasing focus on profitability and sustainable operating models, with 22 of the list entrants making profits in FY23. More than 1.5 lakh people are employed by future unicorns. These are green shoots of tangible impact metrics,” said Rajesh Saluja, CEO and MD of ASK Private Wealth.
“The ASK Private Wealth Hurun India Future Unicorn Index provides essential insights into the current state and future prospects of India’s startup ecosystem. Amid a funding winter, inflated pre-2021 valuations, and setbacks from companies like Byju’s, the once golden startup ecosystem now faces a critical turning point. Despite 44 companies dropping out of the index over the past year, this year’s index welcomes 38 new entrants,” said Anas Rahman Junaid, MD and chief researcher at Hurun India.
The list noted that 35 of India’s future unicorns have overseas headquarters, including 31 in the US, two in Singapore, and one each in the UK and Vietnam.