India expected to see a 20% increase in unicorn companies by fiscal year 2025

The Indian startup ecosystem is gearing up for an increase in the number of unicorns by around a fifth in the fiscal year 2025, with approximately 20 soonicorns on the verge of joining the coveted club. Among the contenders are prominent names like Bookmyshow, Navi, Paymate, Refyne, Clear, Ind Money, Jupiter, Ninjacart, and Biz on Go, all currently valued between $600-930 million. Leading the pack are Turtlemint and Paymate, both with valuations exceeding $900 million.

In the previous fiscal year, the addition of InCred Finance brought the total number of unicorns to 112, collectively valued at over $350 billion. Meanwhile, the soonicorns are estimated to have a combined valuation of over $15 billion. The growth in the number of unicorns has been slower in recent years due to reduced funding commitments and smaller fund raises.

The startup landscape in India is heavily dominated by fintech companies, with around one-third of the soonicorns belonging to this sector. The surge in fintechs can be attributed to the government’s focus on digital payment systems and the Reserve Bank of India’s digital lending guidelines, which have attracted significant investor interest. Additionally, the opportunity to provide financial solutions to underserved populations has fueled the growth of fintech companies in the country.

Despite the rapid growth, many of the soonicorns are still operating at a loss, with high staff and marketing expenses contributing to their cash burn. However, the increasing revenues indicate a promising trend for these companies. The rise of unicorns and soonicorns in the Indian startup ecosystem signifies a positive outlook for the entrepreneurial landscape in the country.