The global startup landscape has witnessed remarkable growth in 2024, with 110 startups reaching the coveted unicorn status—valuations exceeding $1 billion. This surge is primarily driven by advancements in Artificial Intelligence (AI), with 40% of these unicorns identified as AI-based companies.
According to Pitchbook’s unicorn tracker, this year saw a notable increase in the number of startups achieving unicorn status compared to 2023, which saw 103 startups joining the elite $1 billion club. The majority of this year’s new unicorns hail from the United States, focusing heavily on AI and machine learning innovations. In addition to AI, sectors such as climate tech, fintech, and cryptocurrency have emerged as key players in the unicorn boom.
India’s Unicorn Journey: Mixed Results for AI
While AI continues to dominate the global startup scene, its impact on India’s unicorn ecosystem has been more restrained. Data from Venture Intelligence reveals that only five Indian startups reached unicorn status in 2024, with Krutrim being the sole AI-focused company in this elite group. Other new unicorns in India include mobility tech firm Rapido, electric vehicle startup Ather, SaaS company Perfios, and fintech player Moneyview. The unicorn ecosystem in India has primarily thrived in sectors such as electric vehicles, mobility technology, SaaS, and fintech, with AI still taking a backseat.
India’s unicorn tally now stands at 110, with the majority of these emerging during the post-pandemic global liquidity boom of 2021 and 2022. Following a dip in 2023, India has experienced a rebound in unicorn creation, buoyed by an uptick in venture capital funding. As of December 2024, Pitchbook reports a total of 1,417 active unicorns globally.
Investors Eye a Promising Future
Rajesh Sawhney, an investor and founder of GSF Accelerator, expressed optimism for India’s startup trajectory. “Investing momentum picked up in India in the second half after a challenging first half,” Sawhney noted. “I feel the Indian startup trajectory is on the upswing, and 2025 will see twice as many unicorns. However, what we need more (than unicorn status) is an index on the health of the company, with robust revenue and profit growth.”
Bengaluru continues to lead India’s unicorn race with 46 unicorns, followed by Delhi NCR, Noida, and Gurugram with 27. Mumbai ranks third with 21 unicorns, while Chennai and Hyderabad have contributed five and two, respectively.
Unicorn Status and Business Risks
While the surge in unicorns is exciting, experts caution that achieving this status does not guarantee immunity from business risks. Thillai Rajan A, Professor of Finance at IIT Madras, emphasized that while new technologies like AI often contribute to a spike in unicorn numbers, this achievement does not protect startups from inherent business challenges. “Being a unicorn does not insulate the startup from business risks,” he said.
As AI continues to evolve and shape industries, it is likely to remain a dominant factor in the growth of startups across the globe, contributing to both the success and challenges faced by emerging companies in the years ahead.
