(MENAFN- KNN India)
New Delhi, Jun 20 (KNN) A record 25 startups once considered potential unicorns have dropped off the Hurun India Future Unicorn index 2024, reflecting the harsh realities of an industry-wide funding crunch that has triggered a correction in the valuation of many new-age companies.
The coveted annual list, released on June 20th, shows only three startups – Zepto, InCred Finance, and Porter – achieved unicorn status with over USD 1 billion valuations this year.
Notably, SaaS and HR tech unicorn Darwinbox was demoted to a "gazelle" – a company expected to turn unicorn within three years.
The list categorizes startups into unicorns (valued at USD 1B+), gazelles (likely unicorns in 3 years), and cheetahs (potential unicorns in 5 years). This year, around five gazelles and 20 cheetahs fell off the ranking.
"Amid a funding winter and once inflated valuations, the startup ecosystem faces a critical turning point," said Anas Rahman Junaid, MD and Chief Researcher at Hurun India, which compiles the list along with ASK Private Wealth.
Overall, the research identified 152 future unicorns from 31 Indian cities, mostly founded in 2015 and concentrated in software/services over physical products. Financial services, business solutions, education, and healthcare emerged as hot sectors.
Rajesh Saluja, CEO of ASK Private Wealth, noted, "There is an increasing focus on profitability and sustainable models, with 22 entrants making profits in FY23 and employing over 150,000 people."
While 44 companies dropped out, 38 new startups joined the index this year. Notably, travel aggregator ixigo went public at a USD 700 million valuation, bypassing the gazelle stage after being predicted as a potential unicorn in 2022.
Aerospace emerged as an intriguing sector, with AI startups raising USD 1.6 billion, aerospace firms garnering USD 160 million, and EV companies attracting USD 1.2 billion in funding. "The aerospace funding gap underscores its immense growth prospects," Junaid stated.
As valuations realign and profitability takes center stage, India's startup ecosystem undergoes a reckoning after years of unconstrained growth and big money.
(KNN Bureau)
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