written by | May 13, 2022

Know All About Unicorn Startups in India

The existence of unicorns is a contentious topic. While some experts feel that unicorns are just a consequence of technological advancement and innovation, others argue that the high proportion of unicorns is a symptom of an industrial bubble. Two important shifts in the IT business over the last decade have necessitated the creation of a term to characterise private billion-dollar tech firms rapidly.

However, there is currently no formal arithmetic for valuing startups. The valuations are most commonly based on a firm's potential and are only approximations. This has made it simpler for startups to be valued at billions of dollars. Another notable shift is that venture-backed enterprises are considerably more likely to remain private than in past decades.

Did you know?

Every Canadian startup firm with a value worth more than ₹7600 crores is regarded as a narwhal. 

Also Read: Startup Registration in India – How to Get Your Company Registered

What is a Unicorn Company?

The word "unicorn" is used for the risk capital business to designate a startup business worth more than ₹7600 crores.

The word was designed to highlight the uniqueness of such enterprises. The notion of a unicorn company has remained unchanged ever since, and on the flip side, the amount of it has soared.

Characteristics of a Unicorn Business

To be a unicorn is not so simple. Every unicorn has its story to tell and a set of traits that have powered it to prosper. We've put together a record of key denominators we see on all unicorns:

New Technological Disruption

Mostly all unicorn companies successfully disrupted their particular professions through creativity. Ola, for example, has revolutionised the way a person travels. Among other things, OYO transformed the way a person booked trips, and Instagram changed social media networks.

The Firsts

Unicorns are frequently seen as pioneers in their fields. They modified a person's attitudes and eventually became a necessity. They're also believed to be striving to develop to keep up with the competition. Another common thread amongst unicorns is that most business strategies are technologically driven. By creating a consumer-friendly app, Ola was capable of gaining acceptability because of its business model. By using the internet's power, OYO made the country feel smaller.

  • Research shows that software accounts for 88% of unicorn companies, hardware accounts for 7% and the leftover 5% comprise other goods and services.


61.9% of unicorns are Business to Consumer companies. Customers want things to be simple for them, and they want to be a part of the daily routine. Another defining feature of these companies is their low-cost structure. Spotify, for example, has made songs increasingly accessible to people all around the world. Because several unicorns are directly controlled since they are private, their value rises when a bigger firm buys their equity.

Is It Accurate That a Unicorn Could Only Be a Startup Form?

It is accurate. Unicorn is a 'startup' worth more than ₹7600 crores. The startups with an estimate worth more than ₹10,000crores are regarded as decacorns (super unicorns). SpaceX & DropBoX are just a few of the decacorn companies.

Unicorns' Valuation

The valuation of unicorns is based on estimates created by investment firms and stakeholders who took part in the company's fundraising rounds. Because unicorns are also startups, their worth is determined by their potential for growth and predicted expansion. The value of unicorns is unrelated to their real economic success or other essential information. Many businesses have yet to make any revenues, despite their excessively high valuations.

Unicorn valuation is a complex procedure that weighs various elements and develops long-term forecasts. The economic models of such organisations frequently cause further issues. Some businesses have become the first of their kind in their field, making the assessment method even more difficult.

Also Read: Know All About Seed Funding for Startups

India's Unicorn Startups are Listed Below


Flipkart, founded 15 years ago, has become one of India's most successful e-commerce companies. It is the incredible story of two mates, Binny and Sachin Bansal. Flipkart is far above many other Indian e-commerce companies, with a market value of more than ₹1 trillion.


Vijay Shekhar is the founder of Paytm. It was 12 years ago when smartphones were still new to Indians. One-97 communications rebranded to Paytm as it transitioned from a mobile recharge firm to a rail and bus booking solution, a check payment facilitator and finally, a whole payment gateway for businesses.


Razorpay, a Bengaluru fintech firm started by Shashank Kumar & Harshil Mathur, just raised ₹762 crores in investment, making it a unicorn. They started the firm with the simple purpose of supporting every industry in receiving online currencies, and they've made great strides toward that ambition over time.


A reseller platform for medium & small enterprises that helps them begin their brand online utilising social media giants such as Instagram, Facebook and WhatsApp. It was founded in 2005 by Sanjeev and Aatrey Barnwal. The Bengaluru-based company has 100,000 registered providers covering over 26,000 postal numbers in over 4,000 locations, with individual enterprises making over ₹500 crores in revenue.


The Bengaluru fintech company, launched by Kunal Shah four years ago, was recently accepted to the unicorn group, with a valuation of ₹16,776 crores.CRED is an online private club for members only that rewards quick credit card bill repayments with attractive offers and accessibility to the top events. It's a program that allows credit cardholders to manage several cards and receive a credit rating evaluation.

Urban Company

It's a one-stop shop that connects individuals with luxury service providers like massage therapists, cosmetologists, sofa cleaners, craftsmen, and technologists. Abhiraj Bhal founded it in 2014. Urban Company's network of 40K qualified service employees in significant urban areas worldwide has served over 5 million customers.


Zeta was created by Ramki Gaddipati seven years ago, and the firm became a unicorn last year following a ₹1906 crores raise. It is a banking solution that uses debit, credit and other cards to help organisations create unique corporate and retail goods. Businesses with a need for automating can also turn to Zeta for digitised solutions.


Dhaval Shah and Dharmil Sheth launched PharmEasy in 2015, and it offers a wide range of services, including specimen collection for diagnostics, video consultation, drug shipments and more. It also gives pharmacists the option of combining purchases with logistics and distribution help.


The startup was founded in 2018 by Ashneer Grover. BharatPe was India's inaugural Unified Payments Interface QR code supplier and has expanded into other economic sectors since then. BharatPe is the industry expert in UPI physical payments, with more than 50 lakh providers in 35 major Indian cities using the service.


Mindtickle is a data-driven sales readiness and activation solution that assists businesses in increasing earnings and client loyalty. Mindtickle can be used by income and sales professionals to continuously assess, analyse and build the information, skills and practices required to communicate with customers, raise sales and promote growth.

The Goods & Services Tax (GST) has influenced how entrepreneurs operate today, and many excise duties have been abolished and are now part of the GST framework. Consequently, entrepreneurs must follow certain GST rules for such enterprises to receive compliance relief and other benefits.

Is there Any Other Business Meaning for Unicorns?

Yes, We can also use the term "unicorn" to describe HR recruitment. When hoping to fill a given job post, HR directors may have high expectations, causing them to seek experts with more robust talents than those typically necessary for the role. In other words, many employers are on the lookout for a "unicorn," resulting in a disconnect between their ideal prospect and the dedicated group of specialists present.


The term "unicorn" has evolved from a fictional creature to a common occurrence in finance and business talks. Unicorn enterprises have gained notoriety and carved out a niche in the industry. Not every unicorn will turn out to be a profitable startup. The point is that after a startup reaches a certain milestone, it must continue to work hard. The word "unicorn" has become commonplace in the Indian startup environment discussions. Unicorn companies have multiplied to cater to the requirements of their intended customers and create income through their goods and services.
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Q: What do you mean by a unicorn startup?


The word "unicorn" is used for the risk capital business to designate a startup business worth more than ₹7600 crores.

Q: Who evaluates the value of unicorns?


The valuation of unicorns is based on estimates created by investment firms and stakeholders who took part in the company's fundraising rounds.

Q: What are Canadian startups called?


In the world of Canadian startups, what we regard as a unicorn has a different nickname. 'Narwhal' is the name.

Q: Can a company that is not a startup be a unicorn?


No, any company can't be a unicorn. Unicorn is a 'startup' of more than ₹7600 crores.

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