India’s start-up ecosystem has hit a rough patch, marking its first decline in unicorn creation since 2017, according to the Hurun Global Unicorn Index 2024, released on Tuesday. Anas Rahman Junaid, Founder and Chief Researcher at Hurun India, pointed out, “The slowdown is primarily fuelled by lack of investment into start-ups despite the recent stock market record highs.” Junaid further highlighted a trend where Indian founders are establishing more unicorns abroad than at home, with a majority in the United States.
Global Unicorn Index 2024
The index provides a ranking for the world’s most valuable start-ups founded in the 2000s, each worth at least a billion dollars and yet to be listed on a public exchange.
Top 10 global unicorns in 2024
The top 10 unicorns are mainly found in China and the US, with both countries having four each. The list is rounded off with one unicorn each from Australia and Malta.
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Key highlights of Hurun Global Unicorn Index 2024
— OpenAI, Canva, and Binance made their debut among the top ranks in 2024.
— Previous incumbents like Telegram, Revolut, and Cainiao moved down the ranks.
— With a valuation of $220 billion, ByteDance has not only retained its position at the helm but has also outshone Tencent.
— Elon Musk’s SpaceX grew by $43 billion in valuation.
— OpenAI’s valuation leaped to $100 billion, driven by its innovative applications of AI.
Countries and cities where the world’s unicorns are based
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City rankings
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India’s AI milestone and global gap
India witnessed the rise of Krutim, its first AI unicorn, yet remains significantly behind the US and China in AI innovation. The United States and China dominate with 60 and 37 AI unicorns, respectively. “This situation presents a crucial juncture for India,” Junaid said, stressing on the country’s risk of falling further behind in key technology sectors.
China and US lead despite economic slowdown
Rupert Hoogewerf, Hurun Report Chairman, noted, “The world has minted one unicorn every two days over the last year.” He highlighted the resilience of China and the US in continuing to generate new unicorns despite economic challenges. The last five years have seen a dramatic increase in the number of unicorns, with significant growth in the diversity of countries and cities contributing to this global phenomenon.
2024 has been marked as “the year of AI,” with OpenAI’s valuation reaching $100 billion. “The total value of the world’s unicorns reached $5 trillion, equivalent to the GDP of Japan,” Hoogewerf said.
“The world can now be split into three when it comes to unicorns: the US, China and ‘Rest of the World’. The US has half of the world’s known unicorns, led by SaaS, Fintech and AI, China a quarter, led by AI, semiconductors and new energy, while the Rest of the World has the other quarter, led by FinTech and E-commerce,” he added.
China leads the way
Despite the broader economic slowdown, China has led the way in unicorns going public and significantly outpaces the US and the rest of the world.
First Published: Apr 09 2024 | 4:05 PM IST