India witnesses drop in unicorn count, Byju's valuation plunge tops global charts

India, once known for its mushrooming startup ecosystem, witnessed a negative spiral as the number of unicorns – companies valued at over USD 1 billion – declined for the first time in four years, according to a report released on Tuesday.

The Hurun Global Unicorn Index 2024 indicated that India's unicorn count stood at 67, marking a decrease from previous years.

Despite this decline, India retained its position as the world's third-largest hub for unicorns.

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Among the developments, edtech giant Byju's witnessed a decline in valuation, falling sharply from over $22 billion to below the unicorn threshold.

As per Hurun, this downturn in valuation is the biggest dip among startups globally.

Founded in 2008, Byju’s encountered operational restructuring and cost-cutting measures as losses mounted.

The company also fell short of its revenue target for the previous financial year and struggled with resolving a debt of $1.2 billion.

According to Rupert Hoogewerf, the Chairman and Chief Researcher of the Hurun Report, startups like Byju's remain significant despite their setbacks.

Hoogewerf acknowledged the media attention garnered by failing startups, and said that their role in riving economic vitality was key.

Meanwhile, food delivery platform Swiggy and fantasy sports platform Dream11 have emerged as India's most valuable unicorns, each valued at $8 billion.

Right behind is Razorpay, valued at $7.5 billion.

The report also highlighted the emergence of new entrants in the unicorn club, such as the artificial intelligence platform Krutrim.

Anas Rahman Junaid, Chief Researcher of Hurun India, noted the entrance of 60 AI-focused startups from the US and 37 from China into the unicorn realm.

However, despite these additions, India witnessed a decline in its unicorn count.

Junaid attributed this decline to a lack of investments in startups, although there have been gains in equity indices.

Additionally, the trend of Indian founders establishing companies abroad has further impacted India's unicorn prospects.

The global unicorn front saw other frontrunners, with Bytedance, the parent company of TikTok, leading the list valuation of $220 billion.

This was followed by Elon Musk's SpaceX, valued at $180 billion, and Microsoft-backed OpenAI, worth USD 100 billion.

(With inputs from PTI)