India, currently ranked as the third largest startup ecosystem globally, is projected to witness the emergence of 147 unicorns within the next five years, disrupting various sectors such as financial services, healthcare, business management solutions, and education. This information was revealed in the ‘ASK Private Wealth Hurun India Future Unicorn Index 2023’ report released on Tuesday.
India’s Startup Ecosystem Poised for 147 Unicorns in Next Five Years
Presently, India is home to 83 unicorns, along with 51 gazelles (startups likely to become unicorns within three years) and 96 cheetahs (expected to achieve unicorn status within five years). The index ranks startups founded in the 2000s in India that are valued at a minimum of $200 million, not publicly listed, and most likely to become unicorns in the coming years.
Despite facing challenges, founders have demonstrated unwavering determination, adaptability, and resourcefulness. The period of limited funding has acted as a catalyst for innovation, encouraging startups to think creatively, optimize resources, and refine their strategies, according to Rajesh Saluja, CEO & MD of ASK Private Wealth.
The report highlights the resilience and entrepreneurial spirit of startups, with 51 gazelles and 96 cheetahs in the index poised to become unicorns in the next five years. On average, these future unicorns were established in 2015, with a majority focusing on software and services, while only 20 percent deal with physical products. About 37 percent of them cater to businesses, while the remaining 63 percent serve consumers.
Insights into the Future Economy: Gazelles, Cheetahs, and Thriving Startup Ecosystems
According to Anas Rahman Junaid, Hurun India Founder and Chief Researcher, the presence of gazelles and cheetahs in the startup ecosystem provides valuable insights into the future economy, including the sectors that attract top talent and smart capital, as well as the countries and cities with thriving startup ecosystems. In terms of venture capital platforms in India, Peak XV Partners (formerly known as Sequoia Capital India and Southeast Asia) takes the lead in identifying and investing in gazelles and cheetahs, followed by InnoVen Capital, Tiger Global Management, Accel, and Blume Ventures.
In India, companies such as Zepto (quick commerce), Vivriti Capital (financial services), and Ather Energy (EV space) are expected to play significant roles in addressing credit, last-mile logistics, and renewable energy challenges. The report also highlights that Pepperfry, an online furniture platform, holds the highest value among the cheetahs.
