India is expected to add at least 152 unicorns over the next 3-5 years

India is on track to see a substantial increase in the number of unicorns—startups valued at over $1 billion — within the next three to five years. The ASK Private Wealth Hurun India Future Unicorn Index 2024 predicts that 152 new unicorns will emerge from 31 cities, adding to the current count of 67.

However, this year has also seen some startups drop off the future unicorn list. A total of 25 startups were removed, 12 were downgraded from “gazelle” to “cheetah” status, and 10 were upgraded from “cheetah” to “gazelle.”

Rajesh Saluja, CEO & MD of ASK Private Wealth, emphasized the significant transformation taking place within India’s startup scene. He highlighted the role of these emerging companies in shaping the future of India and their contributions to the country’s economic growth.

“A transformative shift is in progress in the dynamic landscape of India’s startups,” said Saluja. “These emerging companies, fueled by innovation and resilience, are not just promising to shape India’s future but also making a significant contribution to our nation’s economic trajectory, thereby reinforcing their significance.”

Most of these future unicorns were established around 2015. The majority are involved in selling software and services, with only 18 per cent focusing on physical products. Additionally, 44 per cent of these companies target business clients, while 56 per cent are consumer-facing.

This anticipated increase in unicorns showcases the vibrancy and growth potential of India’s startup ecosystem. The surge in unicorns reflects India’s entrepreneurial spirit and the supportive environment for innovation and business growth. This growth also underscores the global competitiveness of Indian startups, which are making significant strides both domestically and internationally.

Several factors contribute to this expected surge in unicorns. India’s large, young population, rising internet penetration, and growing middle class create a fertile ground for startups. Government initiatives like the Startup India campaign and various funding schemes have also fostered a supportive environment for entrepreneurs.

Moreover, the growing interest from domestic and international investors has significantly fueled the growth of Indian startups. Venture capital firms and private equity investors see India as a promising market, offering high potential for returns. This influx of capital has enabled startups to scale quickly and expand their operations.

The future unicorns span diverse sectors, including technology, healthcare, education, and e-commerce, reflecting the broad and dynamic nature of India’s startup ecosystem. These companies are leveraging advanced technologies like artificial intelligence, machine learning, blockchain, and the Internet of Things (IoT) to develop innovative solutions that address real-world problems.