India will see a substantial increase in unicorns—startups valued at over $1 billion—within the next three to five years. The ASK Private Wealth Hurun India Future Unicorn Index 2024 predicts that 152 new unicorns will emerge from 31 cities, adding to the current count of 67.
However, some startups have also dropped off the future unicorn list this year. A total of 25 startups were removed, 12 were downgraded from “gazelle” to “cheetah” status and 10 were upgraded from “cheetah” to “gazelle.”
Rajesh Saluja, CEO & MD of ASK Private Wealth, emphasized the significant transformation within India’s startup scene. He highlighted these emerging companies’ role in shaping India’s future and their contributions to the country’s economic growth.
“A transformative shift is in progress in the dynamic landscape of India’s startups,” said Saluja. “These emerging companies, fueled by innovation and resilience, are not just promising to shape India’s future but also making a significant contribution to our nation’s economic trajectory, thereby reinforcing their significance.”
Most of these future unicorns were established around 2015. The majority are involved in selling software and services, with only 18 percent focusing on physical products. Additionally, 44 percent of these companies target business clients, while 56 percent are consumer-facing.
This anticipated increase in unicorns showcases India’s startup ecosystem’s vibrancy and growth potential. The surge in unicorns reflects India’s entrepreneurial spirit and supportive innovation and business growth environment. This growth also underscores the global competitiveness of Indian startups, which are making significant domestic and international strides.
Several factors contribute to this expected surge in unicorns. India’s large, young population, rising internet penetration, and growing middle class create fertile ground for startups. Moreover, the government’s initiatives, like the Startup India campaign and various funding schemes, have fostered a highly supportive environment for entrepreneurs, instilling confidence in the future of India’s startup ecosystem.
Moreover, the growing interest from domestic and international investors has significantly fueled the growth of Indian startups. Venture capital firms and private equity investors see India as a promising market, offering high potential for returns. This influx of capital has enabled startups to scale quickly and expand their operations.
The future unicorns span diverse sectors, including technology, healthcare, education, and e-commerce, reflecting the broad and dynamic nature of India’s startup ecosystem. These companies are leveraging advanced technologies like artificial intelligence, machine learning, blockchain, and the Internet of Things (IoT) to develop innovative solutions that address real-world problems.
