India to have 122 new unicorns in the next 2-4 years: Report

These future Unicorns presently have a cumulative value of US$ 49 billion

June 30, 2022

About 63% of these companies concentrated on consumer-facing enterprises, while the remaining 37% belonged to the business-to-business (B2B) sector

Sequoia Capital has invested in 39 of these prospective Unicorns, followed by Tiger Global, which has invested in 27 of them

Most of these potential Unicorns were established in 2015

India has become the third-largest start-up ecosystem in the world and witnessed a record 44 Unicorns emerging in 2021

India is expected to have 122 new Unicorns in the next 2-4 years, according to a report titled ‘Hurun India Future Unicorn Index 2022’ by the Hurun Research Institute. These future Unicorns presently have a cumulative value of US$ 49 billion.  

A startup achieves a “Unicorn” status when it reaches US$ 1 billion in valuation. 

According to the report, Bengaluru, which has the most Unicorns in the country, will see 46 new additions to its existing list of 33 Unicorns, Delhi NCR would add 25, 16 will be added in Mumbai, five Unicorns in Chennai, and three in Pune. The remaining Unicorns are expected to emerge in 20 other cities. 

Global Venture Capital firm Sequoia Capital has invested in 39 of these prospective Unicorns, followed by Tiger Global, which has invested in 27 of them.

Most of these potential Unicorns were established in 2015. According to the report, 63% of these companies concentrated on consumer-facing enterprises, while the remaining 37% belonged to the business-to-business (B2B) sector serving the financial services, logistics, healthcare, and education.

The report has categorized prospective Unicorns into three divisions, namely would-be Unicorns, which are founded after 2000 and valued at at least US$ 1 billion, Gazelles, which are startups that will most likely become Unicorns in the next two years, and Cheetahs, that are are startups having the potential to turn Unicorn in the next four years. It further stated that the pandemic has accelerated the emergence of startups.

According to experts, India has become the third-largest startup ecosystem in the world and witnessed a record 44 Unicorns emerging in 2021. The experts also mentioned that the number of Unicorns in the country has increased by 65%, Gazelles by 59% to 51, and Cheetahs have increased by 31% to 71.

The report concludes that product and market fit will continue to be the driving factor of India’s startups.