A record 25 potential unicorns have been dropped from the Hurun India Future Unicorn Index 2024 as scarce funding grips India’s startup ecosystem.
While some firms including Zepto, InCred Finance, and Porter were removed as they’ve already achieved unicorn status, 25 other companies, including Dunzo, Koo, Practo, Jar, and Park+, were dropped due to declining valuations.
The Hurun India Future Unicorn Index identifies the most valuable private equity or venture capital-funded companies in India that are likely to become unicorns (startups valued at over $1 billion) in the future.
The 2024 index features 152 future unicorns from 31 cities, predominantly in software and services. Despite economic challenges and valuation dips leading to the removal of 44 companies, the index welcomed 38 new entrants from sectors including AI, space tech, and EV/renewable energy.
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“Aerospace, in particular, stands out as one of the hottest sectors to watch. AI companies in the index have received a combined $1.6 billion in funding, while aerospace startups have garnered $160 million, and EV companies have attracted $1.2 billion. The significant gap in funding for aerospace compared to other sectors highlights its enormous growth potential,” Anas Rahman Junaid, MD and Chief Researcher, Hurun India said in a statement.
Notably, companies like Atlan, Fibe, Pocket FM, K12 Techno Services, and InsuranceDekho, along with five others, were promoted from Cheetahs to Gazelles in the current list.
The report defines “Cheetah” as a startup founded after 2000 with the potential to become a unicorn in the next five years, while “Gazelle” is a startup founded after 2000 with the potential to become a unicorn in three years.
“There is an increasing focus on profitability and sustainable operating models, with 22 of the list
entrants making profits in FY23. More than 1.5 lakh people are employed by future unicorns. These
are green shoots of tangible impact metrics,” said Rajesh Saluja, CEO and MD of ASK Private Wealth.
The combined revenue of companies in the index surged by 71% to Rs 51,422 crore, the report said. Mumbai-based startup KukuFM witnessed a 10X increase in revenue while Battery Smart experienced an 8X increase in FY23.
Additionally, 30% of the index’s companies doubled their revenue compared with the previous year. Furthermore, seven Gazelles and 15 Cheetahs featured in the index achieved profitability in FY23.
Edited by Kanishk Singh
