25 Indian startups drop out of Hurun India Future Unicorn Index 2024

Funding winter shows, cheetahs too lose steam

The funding chill on India’s startup ecosystem was reflected in the Hurun list of future unicorns released on Thursday. While three Indian startups, which had shown the potential of becoming unicorns when the index was last released, attained that status, as many as 25 dropped out of the list altogether. Among these were prominent ones like Rapido, Koo, Dunzo, Paper Boat, DotPe, Gaana and Park+.

The ASK Private Wealth Hurun India Future Unicorn Index 2024 tracks startups that can likely become unicorns, touching a valuation of $1 billion and above. Among those that did not disappoint were quick delivery startup Zepto, which gained unicorn status in August 2023, fintech firm InCred Finance (December 2023), and logistics platform Porter (May 2024). Ixigo, the fourth such startup, was removed from the race after it listed on the bourses on June 18. 

In 2022, the number of startups promoted to unicorn was eight times higher at 24.

The cut-off for Hurun’s 2024 index was May 31, 2024.

Out of the 25 that dropped out, five were gazelles and 20 cheetahs. Gazelles and cheetahs are startups that can become unicorns in three and five years, respectively. 

The 2024 list now has names of 152 future Indian unicorns from 31 cities. In the 2023 list, the number stood at 157.

"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," said Anas Rahman Junaid, managing director and chief researcher, Hurun India.

"The economic slowdown,” he added, “has posed challenges for specific companies, with 24 per cent of last year's gazelles/cheetahs either falling off the list or being downgraded… Rising interest rates and geopolitical challenges have created hurdles for startups in raising capital."

As compared to 12 startups moving from the status of cheetah to gazette in 2022, only nine could do so in 2023 and 10 in 2024.

In 2022, seven startups were promoted from the status of cheetahs to unicorns. In 2023 and 2024, only one startup each attained that milestone. Moreover, compared to 17 startups turning unicorns from gazelles in 2022, only two each did so in 2023 and 2024.

The report also said that India is currently home to 67 unicorns, 46 gazelles, and 106 cheetahs. 

This again reflects a drop in the top two categories from the 2023 index, when there were 68 unicorns, 51 gazelles and 96 cheetahs.

In the report, venture capital firm Peak XV Partners (formerly Sequoia Capital India & SEA) emerged as the top investor with a portfolio of 47 investments. Accel followed with 25 investments and Tiger Global Management with 21.