Indian Startups Achieve Unicorn Status Faster, Zepto Leads the Pack in 2023

A recent report by Orios Venture Partners reveals a significant drop in the average time for an Indian startup to reach unicorn status, decreasing from 8.4 years in 2022 to just 5.5 years in 2023. India now holds the third position globally for the highest number of unicorns, although only two companies crossed the $1-billion valuation mark last year.

The report highlights the resilience of startups amid a challenging liquidity environment, emphasizing that achieving fresh unicorn valuations demonstrates the growth of the market. Orios Venture Partners’ founder, Rehan Yar Khan, cited the example of Zepto, a Mumbai-based quick commerce startup that became a unicorn in August 2023, securing $200 million in funding at a valuation of $1.4 billion.

InCred, a fintech firm, also joined the unicorn club in December 2023 after raising $60 million in a Series D round. The report, titled “Indian Tech Unicorn and Exits Report 2023,” records a total of 123 exits by startups during the year, including Mamaearth and Ideaforge, both of which went public.

Khan stressed the importance of tracking the stages of a company, from founding to unicorn status and eventual exits, to understand the market’s evolution over time. The report also highlighted notable acquisitions in 2023, such as OLX Auto’s sale to CarTrade, Texts’ sale to Automattic, Plix’s sale to Marico, Edamama’s sale to Reliance Retail, and TrillionLoans’ sale to BharatPe.

Despite challenges in the startup exit landscape, Khan remains optimistic about the market’s potential for growth, emphasizing that successful acquisitions are highly dependent on the unique approaches of each founder-driven company.