Amid a challenging funding environment, a record 25 startups have been removed from the Hurun India Future Unicorn Index 2024, reflecting the impact of a valuation correction across the industry.
The latest annual list, released on June 20th, revealed that only three startups – Zepto, InCred Finance, and Porter – achieved unicorn status, reaching valuations exceeding USD 1 billion this year.
Despite the dropouts, 38 new startups joined the index this year. Notably, travel aggregator ixigo went public with a USD 700 million valuation, skipping the gazelle stage after being identified as a potential unicorn in 2022.
Notably, the SaaS and HR tech unicorn Darwinbox was reclassified as a "gazelle," indicating it is now expected to become a unicorn within three years.
The list classifies startups into three categories: unicorns (valued at USD 1 billion+), gazelles (likely unicorns within three years), and cheetahs (potential unicorns within five years). This year, five gazelles and 20 cheetahs were removed from the ranking.
"Amid a funding winter and once inflated valuations, the startup ecosystem faces a critical turning point," stated Anas Rahman Junaid, MD and Chief Researcher at Hurun India, which compiles the list with ASK Private Wealth.
The research identified 152 future unicorns from 31 Indian cities, with most founded in 2015 and concentrated in software/services rather than physical products. Key sectors included financial services, business solutions, education, and healthcare.
Rajesh Saluja, CEO of ASK Private Wealth, highlighted, “There is an increasing focus on profitability and sustainable models, with 22 entrants making profits in FY23 and employing over 150,000 people.”
Aerospace emerged as a promising sector, with AI startups raising USD 1.6 billion, aerospace firms securing USD 160 million, and EV companies attracting USD 1.2 billion in funding. "The aerospace funding gap underscores its immense growth prospects," Junaid observed.
As the focus shifts to realigned valuations and profitability, India's startup ecosystem is undergoing significant changes after years of rapid growth and substantial investments.
