Could India host 200+ unicorns in next five years? Hurun index identifies 46 gazella and 106 cheetah startups

The dream of almost every startup founder is to turn their venture into a unicorn — a company that boasts a valuation of US$1bn. Yet, only a tiny fraction of startups turn into unicorns, making this lofty goal even more desirable. As of 2024, only 67 unicorns rule the start-up world in India, while the US hosts 703 and China 340.

As per the latest report ‘ASK Private Wealth Hurun India Future Unicorn Index 2024’, 152 more startups are on track to turn unicorns over the next five years. These startups — valued at over $200 million — are on the fast track to achieving unicorn status within the next few years.

However, these projections only depend on the current position of these companies and the macroeconomic trends that may change drastically over the next few years, affecting the ability of these companies to turn unicorns. Therefore, over the next five years, many of these startups might lose their valuations, while several others could gain, affecting the overall number of unicorns drastically.

For example, the post-pandemic boom in investments led to 45 start-ups turning unicorns in 2021, leading to over 100 unicorns in the country by 2022. However, the funding winter that followed since mid-2022 led to many startups losing this coveted valuation, taking down the number of unicorns to 68 in 2023 and 67 in 2024.
Future looks bright
Despite challenges, India's startup ecosystem today is buzzing with potential, and the ASK-Hurun report highlights that 38 new startups have been added to the Index this year, signalling a vibrant and evolving ecosystem ready to overcome the obstacles of a funding winter.

The Hurun Research Institute classifies only the startups founded after the year 2000 with a valuation of US$1bn as unicorns. Further, it classifies startups that are most likely to go unicorn in the next three years as Gazelles, and those with the potential to turn unicorn in the next five years as Cheetahs.

India now hosts 46 gazelles and 106 cheetahs, compared to 51 gazelles and 96 cheetahs in the 2023 index. This year saw a record 25 future unicorns drop out, including 5 gazelles and 20 cheetahs. On the brighter side, 7 gazelles and 31 cheetahs entered this year’s list, making it a total of 38 in and 25 out.

"A transformative shift is in progress in the dynamic landscape of India's startups. It is the visionary entrepreneurs and forward-thinking investors who are driving this change, paving the way for a new generation of companies. These emerging companies, fuelled 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,” says Rajesh Saluja, CEO & MD, ASK Private Wealth.

The year 2024 has so far seen the promotion of startups like Zepto, Porter, and Incred Finance to unicorn status, showcasing the resilience and upward mobility within the sector.
Bengaluru: The unicorn hub
India remains the third-largest startup ecosystem globally, after the US and China. As a key tech hub, Bengaluru continues to reign as the capital of future unicorns in India, with 46 startups from the city making it the Hurun index. Bengaluru’s startups are valued at $18.3 billion, which include 13 Gazelles and 33 Cheetahs that reinforce Bengaluru's status as the Unicorn capital of India.

India’s Silicon Valley is followed by Delhi NCR with 29 and Mumbai with 19. These three cities are transforming into breeding grounds for innovation, hosting the majority of India's most promising startups. Together, these three cities account for 61% of the future unicorns in the ASK Private Wealth Hurun India Future Unicorn Index 2024, highlighting their pivotal roles in the country's vibrant startup landscape.
Trends among future unicorns
Fintech, SaaS, and e-commerce are leading the charge, making up 43% of the future unicorns. These sectors are revolutionizing financial services, business management solutions, education, and healthcare. Startups like Servify, operating in 42 countries, and LocoNav, in 25, highlight the global reach and ambition of these companies.

Among the breeding institutions, IIT Delhi emerges as the birthplace for most founders. The report highlights that most of the Cheetahs and Gazelles Founders graduated from IIT Delhi, post-graduation in IIM Ahmedabad and Wharton/ HBS for international masters.

In a significant trend demonstrating the investors' preference towards profitability, 7 Gazelles and 15 Cheetahs from the list made profits in FY 2023. Collectively, the 152 startups that are part of the index employ over 150,000 people, underscoring their impact on the economy.

Among investors, Peak XV Partners (formerly Sequoia Capital India & SEA) leads as the top investor with 47 probable unicorns in its portfolio, including Turtlemint and CleverTap. Accel and Tiger Global follow closely, each backing a diverse range of high-potential startups.

The ASK Private Wealth Hurun India Future Unicorn Index 2024 offers a fascinating glimpse into the future of India's startup landscape. As they continue to grow and evolve, these startups are a reflection of India’s economic growth story and technological advancement, reinforcing our position as a global startup powerhouse.

However, in a race to turn unicorns, India's startups must not forget that the aim is not to increase valuation, but to create sustainable, impactful, and profitable businesses that can thrive in the global market.