3 startups turn Unicorn this year, says Hurun Report

Mumbai: India is currently home to 67 unicorns, 46 gazelles and 106 cheetahs according to the ASK Private Wealth Hurun India Future Unicorn Index 2024. Last year there were 68 unicorns, 51 gazelles, and 96 cheetahs.

The year 2024 saw inclusion of 38 new entrants to the index, including 7 Gazelles (companies expected to become unicorns within three years) and 31 Cheetahs (projected to reach unicorn status within 5 years).

However, a record 25 potential unicorns with prominent names such as Rapido, Koo, Dunzo, Paper Boat, Dotpe, Gaana and Park dropped from the list. The year three startups became unicorns namely Zepto, the Indian quick delivery startup, which gained unicorn status in August 2023; InCred Finance, which became a unicorn in December 2023, and logistics platform Porter. Online travel aggregator IXIGO exited the list owing to the IPO which got subscribed 98 times.

According to Hurun Research Institute, unicorns are start-ups founded after the year 2000 and have a valuation of $1 billion, gazelles are start-ups that are most likely to go unicorn in the next three years. Cheetahs are the start-ups that could go unicorn in the next five years. India’s future unicorns are currently worth $58 billion, with an increase of 1.8 per cent as compared to 2023.

Anas Rahman Junaid, MD and Chief Researcher, Hurun India said, “"The ASK Private Wealth Hurun India Future Unicorn Index provides essential insights into the current state and future prospects of India's startup ecosystem. Amidst a funding winter, inflated pre-2021 valuations, and setbacks from companies like Byju's, the once golden startup ecosystem now faces a critical turning point. Despite 44 companies dropping out of the index over the past year, this year's index welcomes 38 new entrants.”

“The economic slowdown has posed challenges for specific companies, with 24 per cent of last year's Gazelles / Cheetahs either falling off the list or being downgraded. Hurun Research suggests that these companies may no longer have the potential to become unicorns within three years. Rising interest rates and geopolitical challenges have created hurdles for startups in raising capital,” added Rahman.