Mumbai: There has been a record drop in the number of future unicorns, with 25 startups delisting due to funding winter, actions by financial regulators and also a bias towards profitability of companies, according to a report on Thursday .
The number of unicorns (startups valued at more than $1 billion) fell by one to 67 in 2023. Unicorns had grown by three to 68 last year, according to the ASK Private Wealth Hurun Indian Future Unicorn Index.
There were "record churns" of future unicorns at 25, including five companies valued at more than $500 million that were likely to become unicorns within three years (called gazelles) and 20 entities valued at more than $200 million that were likely to become in unicorns in five years. (called chettahs), the report said.
The country is now home to 67 unicorns, 46 gazelles and 106 cheetahs, according to the list. He also added that there were 38 new entrants to the list, including seven gazelles and 37 cheetahs.
ASK Private Wealth CEO and CEO Rajesh Saluja said startup valuations were hit by the ongoing funding winter, which has seen a slowdown in betting as higher interest rates They attract investors towards fixed income.
There were also other issues, including regulatory actions by financial sector watchdogs, which questioned the valuations of some fintechs such as in the buy now, pay later (BNPL) segment and also the growing insistence on profitability by investors. externals, he said.
Hurun India chief researcher Anas Rahman Junaid said uneven consumption growth may also have affected valuations in some cases.
Venture funds prefer to hold on to cash due to lack of sufficient opportunities, Saluja said, adding that in the industry only 35 to 40 percent of the funds' committed amounts are used for bets on companies.
However, the increased role of high- and ultra-high-net-worth families has helped minimize the impact of winter funding on the ecosystem, Saluja said, adding that $8 billion was invested in startups in 2023, versus the previous 38 billion dollars.
Peak XVPartners remains the most active investor on the list with 47 bets, while Anand Chandrasekaran is the top angel investor with stakes in 20 future unicorns, he said.
The report says 35 future Indian unicorns are based abroad, of which 31 are in the US, two in Singapore, one in the UK and one in Vietnam.
Bengaluru remains the country's future unicorn capital, hosting 46 such companies, followed by Delhi-NCR at 29th and 19th in Mumbai.
The number of unicorns (startups valued at more than $1 billion) fell by one to 67 in 2023. Unicorns had grown by three to 68 last year, according to the ASK Private Wealth Hurun Indian Future Unicorn Index.
There were "record churns" of future unicorns at 25, including five companies valued at more than $500 million that were likely to become unicorns within three years (called gazelles) and 20 entities valued at more than $200 million that were likely to become in unicorns in five years. (called chettahs), the report said.
The country is now home to 67 unicorns, 46 gazelles and 106 cheetahs, according to the list. He also added that there were 38 new entrants to the list, including seven gazelles and 37 cheetahs.
ASK Private Wealth CEO and CEO Rajesh Saluja said startup valuations were hit by the ongoing funding winter, which has seen a slowdown in betting as higher interest rates They attract investors towards fixed income.
There were also other issues, including regulatory actions by financial sector watchdogs, which questioned the valuations of some fintechs such as in the buy now, pay later (BNPL) segment and also the growing insistence on profitability by investors. externals, he said.
Hurun India chief researcher Anas Rahman Junaid said uneven consumption growth may also have affected valuations in some cases.
Venture funds prefer to hold on to cash due to lack of sufficient opportunities, Saluja said, adding that in the industry only 35 to 40 percent of the funds' committed amounts are used for bets on companies.
However, the increased role of high- and ultra-high-net-worth families has helped minimize the impact of winter funding on the ecosystem, Saluja said, adding that $8 billion was invested in startups in 2023, versus the previous 38 billion dollars.
Peak XVPartners remains the most active investor on the list with 47 bets, while Anand Chandrasekaran is the top angel investor with stakes in 20 future unicorns, he said.
The report says 35 future Indian unicorns are based abroad, of which 31 are in the US, two in Singapore, one in the UK and one in Vietnam.
Bengaluru remains the country's future unicorn capital, hosting 46 such companies, followed by Delhi-NCR at 29th and 19th in Mumbai.
