Unicorn start-ups decline: Hurun Index

India is currently home to 83 unicorns, 51 gazelles, and 96 cheetahs, as against 84 unicorns, 51 gazelles, and 71 cheetahs in the 2022 index, according to the latest Future Unicorn Index published by Hurun Research Institute in association with ASK Private Wealth.

The number of Gazelles remains the same at 51 in both the 2023 and 2022 indexes. 

Hurun Research Institute has classified start-ups as Unicorns (start-ups founded after the year 2000 with a valuation of $1 billion), Gazelles (start-ups that are most likely to go Unicorn in the next three years), and Cheetahs (start-ups that could go Unicorn in the next five years).

The evaluation is based on regulatory filings, feedback from other entrepreneurs, and some of the active India-focused VC funds.

According to the ASK Private Wealth Hurun India Future Unicorn Index 2023, India has 83 Unicorns as against 84 in the 2022 index, and 96 Cheetahs as compared with 71 a year ago. But the number of Gazelles remain the same at 51 in the 2023 and 2022 indexes. 

Hurun Research said it found 147 Indian future Unicorns from 25 cities. On an average, these were set up in 2015, with the vast majority selling software and services, with only 20% selling physical products, 37% are selling to businesses, while 63% are consumer-facing. Future Unicorns were seen disrupting financial services, healthcare, business management solutions and education.

Rajesh Saluja, CEO & MD, ASK Private Wealth said, “The Indian start-up ecosystem is a dynamic force, brimming with immense potential and boundless opportunities. Despite the headwinds, we have seen founders demonstrating unwavering determination, adaptability, and resourcefulness.”

Anas Rahman Junaid, founder and chief researcher, Hurun India said, “Gazelles and Cheetahs provide an insight into the economy of tomorrow.”

“While rising interest rates and global uncertainties have dramatically reduced the appetite of investors to put money into start-ups in the past half year, there are nonetheless 147 companies, a new record, that Hurun Research believes are most likely to ‘go unicorn’ within five years.”