The Hurun Research Institute has recently published the highly anticipated “Global Unicorn Index 2024,” a comprehensive ranking of the world’s startups founded in the 2000s. This index provides valuable insights into the landscape of high-growth, venture-capital-backed companies, commonly known as unicorns, which have achieved a remarkable valuation of $1 billion or more.
Key findings from the index reveal that India boasted 67 unicorn startups in 2023, maintaining its position as the third-largest unicorn hub globally, despite a slight decrease from 68 unicorns in 2022. Leading the pack were the United States, with 703 unicorns, followed closely by China with 340. However, it is noted that India currently lacks unicorns in the Aerospace or SpaceTech sectors, highlighting potential areas for growth and investment.
Unicorns, a term coined by venture capitalist Aileen Lee in 2013, represent privately held startups that have garnered significant attention and investment, exemplified by success stories like Swiggy and Dream11. However, the decline in unicorn numbers in India is attributed to the slowdown of the startup ecosystem, primarily due to a lack of investment. Interestingly, Indian founders have been instrumental in producing offshore unicorns, co-founding 109 unicorns outside of India.
Concerns have been raised about the sustainability of unicorn businesses in India, with rapid growth often leading to the depletion of cash reserves. To address these challenges, India has implemented various initiatives to promote startups, including the Fund of Funds for Startups Scheme and income tax exemptions for startups incorporated after April 1, 2016. Additionally, the National Startup Award aims to recognize and support a diverse set of startups.
Despite these challenges, India boasts the third-largest startup ecosystem globally, with 44 Indian startups achieving unicorn status in 2021 alone. The period from 2015 to 2022 witnessed a significant increase in both total funding and the number of investors in Indian startups, signaling robust growth and potential for further expansion in the coming years.
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