India's startup ecosystem saw rapid growth in the year 2024, with six firms achieving unicorn status compared to two in 2023. This surge in billion-dollar valuations; across AI as well as EVs, fintech, and more, speaks to the vitality and maturity of India's entrepreneurial environment.
Foundation Set in 2023
The groundwork of this extraordinary growth was laid in 2023 when two companies attained unicorn status. In August 2023, Zepto the quick-commerce company closed a $200 million round led by StepStone Group and Goodwater Capital, which values the company at $1.4 billion. Its success in the hyper-competitive grocery delivery market proved how much room for innovation there is within the e-commerce sector of India. InCred Finance, the second unicorn of 2023, bagged $65 million in Series D funding in November, at a valuation of $1 billion. The success of this fintech startup demonstrated India's continued dominance in financial technology innovation.
The Unicorn Formation in 2024
The rate of unicorn formation increased considerably in 2024, with six businesses joining the elite club, each representing a different aspect of India's technical growth.
Krutrim AI was one of the pioneers to lead this charge as it became the first unicorn of 2024. Founded by Ola Electric CEO Bhavish Aggarwal, the company recently raised $50 million in its fundraising at a valuation of $1 billion. Krutrim AI, with a focus on developing indigenous language models and AI chips, will place India into that circle of competition with OpenAI and other established players in global artificial intelligence. The company is indicative of the emerging capabilities India has in Deeptech and AI.
RateGain, based in Delhi NCR, turned into a unicorn in February 2024. That success in delivering SaaS solutions to the travel and hospitality sectors proved the deepening maturity of India’s software services industry. RateGain's platforms for pricing optimization, distribution, and business intelligence have made it a must-have tool for travel industry professionals worldwide.
Bengaluru-based finance SaaS company Perfios became a unicorn last month after raising $80 million. Its ability to aggregate and analyze data for financial institutions has underlined the central role that digital change is playing in banking and financial services. Perfios is evidence of how important and powerful fintech innovation still is within the Indian startup ecosystem.
Ather Energy achieved unicorn status in August 2024, drawing attention to the electric vehicle space. The Bengaluru-based EV firm raised ₹596 crore ($71 million) in funding from the National Investment and Infrastructure Fund. Success for Ather Energy is indicative of India's mounting commitment to sustainable transport and clean technology, as it competes head-to-head with established peers in the booming EV space.
In September 2024, Rapido also joined the unicorn club. Rapido, a bike taxi service provider, has raised $120 million from WestBridge Capital and other investors, bringing its valuation to $1 billion. The company's success in the ride-hailing business highlights the ongoing opportunity for innovation in urban mobility solutions.
Moneyview, a fintech platform that provides personal loans and financial management solutions, was this year's final unicorn. The company's $1.2 billion value demonstrates sustained investor confidence in India's financial technology sector.
The Bottom Line
India's startup ecosystem is rapidly expanding, with these six unicorns demonstrating the ingenuity and dynamism that define the country's entrepreneurial scene. From fintech to electric vehicles and artificial intelligence, these companies are creating ripples not only in India, but also around the world. Their success demonstrates the financial potential and diversity of India's booming startup ecosystem.
