Hurun Future Unicorn Index 2024 was recently published, showcasing where India stood regarding startups. With several new faces coming up as the unicorns of the year, many startups achieved the privilege of being on top of the list.
Unicorn is a term entitled to any venture that surpasses a valuation of $1 billion, an esteemed title indeed, especially in developing countries like India. It was in the early 2010s when Alien Lee popularised the term because he found it magical, as he puts it. 
The Hurun Future Unicorn Index 2024 is driven by the purpose of bringing into light the growing economic market of India, the new and vibrant startup ecosystem that is laid in the Indian economy, and to bring out these features and findings for the world, government, and entrepreneurs to witness.
It studies and analyses the rapidly growing startup culture and groups them into categories like Unicorn—companies started in the 2000s with a current valuation of $1 billion; Gazelles—companies that are likely to achieve the title of Unicorn in the next three years; and Cheetah—companies expected to reach the title of Unicorn within a margin of 5 years.
This evaluation of the Indian startup ecosystem has led to mixed feelings in the minds of Indian entrepreneurs and anyone who finds interest, as it didn’t just showcase the newcomers in the league; it also put forth a clear indication and graph as to where Indian startups and businesses stand in the sense of the challenges that are also coming as they rise.
Currently, India is home to 67 startups that will become Unicorns shortly and is expected to add at least 152 shortly, with Unicorns rising from over 31 cities all across the country.
The year’s top three companies to receive the most positions in The Hurun Future Unicorn Index 2024 were Peak XV Partners, with 47 investments made, followed by Accel and Tiger Global Management with a total of 25 and 21 investments, respectively.
Peak XV Partners
Formerly known as Sequoia Capital India, it was founded in 2000 and is currently a leading venture capital firm specialising in early and growth-stage investments. Since its birth, it has been a major player in the Indian economy and goes by the motto of investing and encouraging new startups if they do have potential.
According to the ASK Private Wealth Hurun India Future Unicorn Index 2024, Peak XV Partners is the top investor in Indian startups, with investments in 47 companies, including notable startups like Turtlemint, CleverTap, and Classplus.
Their investments have played a significant role in driving the companies in which they invest, supporting their growth through strategic investments and guidance leading to a greater goal, and this reflects the importance of the firm in the Indian ecosystem of startups and businesses.
They have been proactive in their investment strategies, and with the robust portfolio they have created over the years, they have cemented their position and played a crucial role in fostering innovation and shaping the future of the Indian economy.
Peak XV is an investor in 70 per cent of India’s unicorns.
Accel
Standing second in the list, Accel is also a venture capital firm, with investments in over two dozen companies (25), and has established itself as one of the top Indian startups next to the title of Unicorn.
Atoms, the company’s accelerator programme, nurtures new startups, guides them in their journey, and lays focus on identifying these startups with high potential. Through this, they secure their stake in the company.
Just like Peak XV Partners, Accel stands as a crucial venture that is helping crucially high-potential startups as they grow.
Tiger Global Management
Founded in 2001, Tiger Global Management has made investments in 21 companies that are expected to become the next generation of unicorns.
Going by this alone, it is indeed exciting news that Indian startups are building and developing at such a good rate; however, if we study wisely and analyse the growth per year, there is an indication of a slowdown, an economic slowdown.
Studying data from the previous two years, we can see that, in 2024, only 10 startups achieved the status of Gazelles from being former Cheetahs, as compared to 9 in 2023 and 12 in 2022. A single startup has achieved the title of Unicorn, raising it from the group of Cheetahs, as compared to the 7 startups in 2022 that rose from Cheetah to Unicorn, and only 2 rose from being Gazelles to Unicorn as compared to the 17 in 2022.
The Unicorns of the year were Zepto, which achieved the title of Unicorn last year in August; fintech firm InCred Finance, achieving the title in December 2023; Perfios; Krutrim; and logistics platform Porter, which became a startup in May 2024, so very recently, joining the already present startups in the league.
Zepto
Founded in 2020, it has been one of the fastest-growing ventures. With their promise to deliver in 10 minutes and the variety they provide, they’ve very quickly grown to high strata while also achieving the title of a unicorn.
For any such grocery delivery company to blow up, there are several things needed, like a significant investment in infrastructure, setting up a supply chain network, and getting connections from warehouses.
Zepto has adopted the Hub-Spoke Model, and it has proved good; the setting up of micro warehouses and dark stores has made it possible to dispatch any order within minutes; and the localised options available have also increased the customer ratio.
InCred Finance
Set up in 2016, InCred became the second unicorn on the year’s list. It is a non-banking financial services company, providing loans and SME lending.
InCred Finance has a loan portfolio exceeding Rs 7,500 crore, with a 50% annual growth rate over the past three years. Its profit before tax was Rs 42 crore in FY22 and increased to Rs 203 crore in FY23.
According to Statista, digital lending is one of the fastest-growing fintech sectors in India, expanding from $9 billion in 2012 to nearly $150 billion in 2020 and projected to reach $350 billion by 2023. A report by IIFL Infotech earlier this year estimated that India’s digital lending market will hit $515 billion by 2030.
With their new-age technology and data science, they have accelerated the process of lending. InCred has proved that new-age financial services platforms are the future of lending.
Porter
The Bengaluru-based logistics service provider was set up in 2014, becoming the latest unicorn of the year. Porter functions as a delivery operation for businesses as well as individuals by providing them with on-demand light commercial vehicles. They provide services for the transportation of goods.
While there was an overwhelming achievement to witness as these companies are the next generation of unicorns in the country, there was some disappointment as we saw a drop in several companies.
With 25 Indian startups dropping from the list over the year and only a few new unicorns emerging, it is inevitable not to notice how various factors like the regulatory framework and the challenges caused by geopolitical reasons have affected the startups in India.
Renowned companies Gaana, Koo, Rapido, Paper Boat, Dunzo, and DotPe were missing from the list of Future Unicorns, further proving the existing challenges that have haunted the startup ecosystem.
Stricter regulations on non-banking financial companies (NBFCs) and increased scrutiny on the online lending of money have had an impact on fintech startups. Several challenges come up with securing findings and achieving sustainability, which has caused several companies to drop off.
However, even after all these hurdles, startups in India have come a long way, and as stated above, there is still potential in the upcoming startups as they lead the Indian ecosystem. Unicorns have had a multifaceted impact on the economy, as they play a crucial role in job creation. With their firms and their connections through the supply chain network that they are a part of, they create various job opportunities, both directly and indirectly.
The growth of unicorns attracts investors, both domestic and international, leading to a more adequate flow of capital. Not just this, with new ventures coming up, there has been a shift in the traditional idea of industry. New unicorns, gazelles, and cheetahs bring forth new and innovative frameworks for companies, and they also adapt to new trends like artificial intelligence, blockchain, and data analytics.
Unicorns in India have exemplified and powered the startup ecosystem’s entrepreneurial drive and potential. They are all set to revolutionise industries, challenge traditional ways, address societal challenges, fuel economic growth, and generate more job opportunities for the youth and eligible.
Despite the challenges thrown at them—regulatory obstacles, geopolitical challenges, and fierce competition—startups in India have achieved a major gain, not just in their valuation but in their popularity.
