Indian unicorns: A list of fledgling businesses that will be considered unicorns by 2024

Indian unicorns: A list of fledgling businesses that will be considered unicorns by 2024

Examine the innovators of today: the industries, valuations, and unicorn companies in India.

Every now and then, in the fast-paced world of startups, unicorn companies appear. These remarkable businesses have captivated the business community and captivated our thoughts with their remarkable accomplishments. With its thriving startup culture and quickly expanding startup ecosystem, India is home to a large number of unicorn firms that are transforming markets, upending sectors, and leaving their imprint on the world stage.

By May 2022, the startup ecosystem in India—which is ranked third in the world—had achieved a significant milestone: 100 unicorns, with a combined valuation of $332.7 billion. Indian unicorns are doing quite well in the fast-paced, dynamic economy of today. These companies are not only developing innovative products and technology, but they are also significantly increasing employment.

This piece will introduce you to the world of Indian unicorns, highlighting the creative forces that have garnered impressive valuations and caught the interest of global investors. We will look at the industries they work in, the innovative solutions they provide, and the effects they have on Indian society and the economy.

An organization classified as a unicorn startup is a privately owned startup that has been valued at more than $1 billion. The phrase was first used by venture investor Eileen Lee, who selected the mythological beast to symbolize the statistical rarity of such profitable endeavors.

Innovative and revolutionary businesses operating in a variety of industries, including technology, e-commerce, finance, and healthcare, are often referred to as unicorn startups. They usually develop quickly and draw large sums of money from other investors and venture capitalists. To get a competitive advantage and increase their market share, these businesses often use cutting-edge technology, business models, or marketing techniques.

In the startup ecosystem, the idea of a unicorn company has become well-known as a gauge of potential and success. In India, unicorns are seen as industry game-changers with the power to establish new markets or modify existing ones. Well-known unicorn companies include Dream11, BYJU's, Swiggy, Ola Cabs, OYO Rooms, and Razorpay.

In India, unicorns are a symbol of the country's startup ecosystem's potential and entrepreneurial spirit. These creative businesses are redefining whole sectors, addressing social issues, promoting economic expansion, and generating employment.

Startups are actively supported by the Indian government and business community, despite regulatory obstacles and fierce competition. India's economy and society have greatly benefited from the unicorn effect, and in the future, many more top businesses want to achieve this prestigious position.

Answers to Common Questions (FAQ)

1. What are the key elements that enable a company to achieve unicorn status?

Disruptive innovation, scalability, market demand, excellent leadership, profitable fundraising rounds, and quick growth milestones are typical characteristics of unicorns in India. They often make use of cutting-edge technology, seize a substantial portion of the market, and show promise for long-term profitability and sustainability.

2. How do unicorns affect India's economy and the sectors they work in?

In India, unicorns are a major force behind innovation and economic progress due to their size as well as the excitement and buzz they create. In addition to bringing in investment and disrupting established sectors, they also offer new technology and business models and aid in the general restructuring of markets. Their success often encourages entrepreneurship and an innovative spirit inside the startup community.

3. Do successful unicorn startups exist?

Even while Indian unicorns have attained lofty valuations, not all of them are making money right away. Swift expansion and market leadership are given precedence by several unicorn firms above immediate financial gain. Their income is often reinvested in growing their business, reaching a wider audience, and creating new goods and services. Goals for profitability could vary depending on where a business is in its growth process.

In the next five years, 147 Indian enterprises are expected to become unicorns.

According to the ASK Private Wealth Hurun India Future Unicorn Index 2023, there are 96 cheetahs, 51 gazelles, and 83 unicorns in India. But last year, around 20% of gazelles and leopards were either delisted or downgraded as a result of the economic downturn.

   Companies are searching for funding at this time to expand their operations.Hurun Research reports that 147 Indian businesses have the potential to become unicorns over the next five years, despite the fact that investor appetite has decreased due to increasing interest rates and global concerns.

As of June 27, the ASK Private Wealth Hurun India Future Unicorn Index 2023 reports that India is home to 96 cheetahs, 51 gazelles, and 83 unicorns. There were 84 unicorns last year, therefore there has been a minor decrease from this. 51 leopards and 51 gazelles

According to Hurun Research Institute, unicorns are firms valued at $1 billion or more that were created after 2000; gazelles are startups that have the highest chance of becoming unicorns in the next three years; and cheetahs are startups that have the potential to become unicorns in the next five years. The regulatory filings, the opinions of other entrepreneurs, a few venture capital firms with an emphasis on India, and angel investors all contribute to the value.

Hurun Research identified 147 potential unicorns from 25 Indian towns. These were mostly established in 2015, with just 20% providing tangible goods. Of these, 37% sell to companies and 63% deal directly with consumers. Most of them offered software and services. Future unicorns were predicted to upend industries including healthcare, education, financial services, and business management software.

Some businesses have been particularly hard hit by the economic slump; almost 20% of the gazelles and leopards from the previous year were either delisted or downgraded. Hurun Research predicts that in three years these firms won't be able to achieve unicorn status. Hurun India's principal researcher and creator, Anas Rehman Junaid, argues that raising money for startups has become challenging due to a combination of rising interest rates and geopolitical restraints.

Gazelles are high-growth potential firms with a valuation ranging from $500 million to $1 billion on the 2023 list. On the other hand, the total value of these gazillions decreased by 1% annually to $30.8 billion. Together, the 51 firms that make up the index have raised a significant $9.6 billion in capital.

The EV company Ather Energy, the rapid commerce firm Zepto, the edtech startup LeapScholar, and the AI startup Observe are leading the index.Ninjacart is an agritech and AI firm. Eleven gazelles from the financial industry, six from SaaS, and four from e-commerce and agritech are included in the index.

Cheetahs are the next tier of companies, having values between $200 and $500 million.With 96 CHEATs in all, India is home to an astounding amount of funding—$9.3 billion. According to the research, the total value of these cheetahs that are part of the index grew by a noteworthy 47 percent annually to $26.3 billion.

With 17 representation, e-commerce businesses lead the Cheetah Index, followed by SaaS with 14 representation.

With 37 investments in its portfolio, Peak XV Partners—formerly Sequoia Capital India & SEA—is the index's top investor. The second-ranked company in the index is Innoven Capital, which is funded by Temasek and UOB Group and offers debt capital to high-growth businesses that specialize in financing solutions for startups and emerging enterprises. Innoven Capital has made investments in 26 of the index's firms. Among them are notable companies like Porter, Jumbotel, Captain Fresh, and Ather Energy.

With 24 co-founders, IIT Kharagpur leads the future unicorn as the best undergraduate institution, followed by IIT Delhi with 23. With 14 co-founders, IIM Ahmedabad is the top option for postgraduate education. With eight co-founders, the University of Pennsylvania ranks out among international institutions; Stanford University and INSEAD, with three co-founders apiece, follow suit, demonstrating their noteworthy contributions to the startup environment.

Future unicorns driven by women

Six Gazelles and 11 Cheetahs were co-founded by 18 female entrepreneurs from 18 different firms, according to the ASK Private Wealth Hurun India Future Unicorn Index 2023. These women have made substantial contributions to the startup ecosystem.

The only business in the index with two female co-founders is Heads Up for Tails. As the youngest female co-founder of Index, Vrushali Prasade is 29 years old. He is one of the co-founders of Pixis, a marketing-focused codeless AI infrastructure business. The business trajectory of Prasade demonstrates the ingenuity and perseverance of women in India's startup scene.

Manju Dhawan is the oldest female co-founder included in the index at the age of 57. Her co-founding of Ecom Express serves as a testament to the resilience and business acumen of women in the Indian startup scene.