Introduction: The Unicorn Landscape in 2024 – A Tale of Triumph and Tribulation
India’s startup ecosystem has been one of the most dynamic and promising in the world, with its rapidly growing market, young entrepreneurial spirit, and a massive pool of tech talent. Over the past decade, the country has produced a burgeoning number of unicorns—startups valued at over $1 billion—positioning itself as a global leader in the startup space. From tech giants to fintech disruptors, India has seen incredible success stories, but not without its share of pitfalls.
As we close out 2024, India’s unicorn scene presents a tale of both boom and bust. While many startups have achieved record valuations and expanded their footprint globally, others have faced setbacks, struggling to adapt to a rapidly changing economic environment. Rising competition, funding challenges, and evolving consumer expectations are among the key challenges startups must navigate.
In this article, we take an in-depth look at India’s best-performing and worst-performing unicorns in 2024. By analyzing key performance indicators, including revenue growth, market share, profitability, and innovation, we will uncover the factors driving success and those that have led to setbacks. Along the way, we will also explore the broader trends in the Indian startup ecosystem and assess what lies ahead for these high-flying companies.
India’s Unicorn Boom: A Snapshot
India is home to over 100 unicorns, a number that continues to rise each year. The year 2024 marks a record high in the number of new startups reaching the coveted $1 billion valuation. However, the broader narrative is nuanced, with many of these unicorns facing various challenges, including valuation corrections, increasing operational costs, and difficulties in scaling effectively.
Despite these challenges, the market remains highly fertile for innovation, especially in sectors like fintech, e-commerce, healthtech, and edtech, which have seen explosive growth in recent years. Additionally, the Indian government has provided strong support through initiatives such as “Startup India,” which aims to foster innovation and create a more conducive environment for business growth.
Best Performing Startups in 2024: Riding High on Innovation and Expansion
While some startups have struggled, several Indian unicorns are on a meteoric rise, capitalizing on favorable market conditions and relentless innovation. Below are some of the standout performers:
1. Zomato: Dominating the Digital Dining Experience
Sector: Food Delivery & Restaurant Tech
Valuation in 2024: $14 Billion
Revenue Growth: 45% YoY
Key Factor: Diversification into New Markets and Delivery as a Service (DaaS)
Zomato, which first garnered attention as India’s leading food delivery platform, has emerged as one of the most successful startups in 2024. The company has solidified its position as a dominant force in the food-tech sector by expanding its services beyond delivery into a full-service restaurant-tech ecosystem. With its recent foray into Delivery as a Service (DaaS) for third-party restaurant partners, Zomato is on track to revolutionize the way foodservice operations are run.
Zomato’s strong performance is also backed by the increasing demand for online food delivery, which has grown in popularity among urban consumers. Its growth in international markets such as the Middle East and Southeast Asia has bolstered its revenue, and the company has achieved profitability in 2024—a rare feat in the food-tech space.
Zomato has also leveraged artificial intelligence (AI) and machine learning (ML) to improve the user experience, with personalized recommendations, delivery optimization, and customer engagement strategies leading the way. Its focus on innovation and expansion into new verticals has made it a clear leader in India’s startup ecosystem.
2. Razorpay: Empowering Digital Payments in India
Sector: Fintech
Valuation in 2024: $8.5 Billion
Revenue Growth: 50% YoY
Key Factor: Expansion of Product Portfolio and Strategic Partnerships
Razorpay, India’s leading fintech unicorn, continues to break new ground in 2024. The company, which started as a payments gateway provider, has rapidly expanded its portfolio to offer a range of products tailored to small and medium-sized enterprises (SMEs). With products like RazorpayX (a neo-banking platform), Razorpay Capital (offering working capital loans), and smart invoicing systems, Razorpay has been able to capture a significant share of the digital payments market.
Razorpay’s recent expansion into Southeast Asia and its partnership with global giants like Mastercard and Google Pay have propelled its growth. The company’s growth trajectory in 2024 has been powered by the ongoing digitalization of India’s financial services industry, accelerated by government initiatives such as Digital India.
Razorpay’s focus on simplifying financial operations for businesses, along with its commitment to customer-centric solutions, has made it a top contender in India’s fintech landscape.
3. BYJU’S: Pioneering EdTech with Global Expansion
Sector: EdTech
Valuation in 2024: $22 Billion
Revenue Growth: 35% YoY
Key Factor: Aggressive Global Expansion and Diversification
BYJU’S continues to be a formidable force in the Indian startup ecosystem, leading the EdTech revolution. In 2024, the company has seen significant growth by diversifying its product offerings and expanding its footprint internationally. Having acquired several leading EdTech companies, including Akash Institute, Great Learning, and Toppr, BYJU’S is firmly positioned as a global player in the education space.
With its user-friendly app, extensive content library, and personalized learning paths, BYJU’S has been able to capture the imagination of millions of students across India and abroad. The company’s expansion into markets like the United States, the Middle East, and Southeast Asia has fueled its revenue growth. Additionally, BYJU’S is increasingly focusing on K-12 education and lifelong learning, which is expected to drive further growth in the coming years.
While challenges remain—particularly around regulatory issues and maintaining profitability—BYJU’S aggressive growth strategy has positioned it as a leader in the EdTech sector.
4. Swiggy: Expanding Beyond Food Delivery
Sector: Food Delivery & Quick Commerce
Valuation in 2024: $10 Billion
Revenue Growth: 40% YoY
Key Factor: Push into Quick Commerce and Grocery Deliveries
Swiggy, another food delivery giant, has seen tremendous growth in 2024 due to its aggressive push into the quick commerce and grocery delivery space. The company’s focus on providing hyperlocal deliveries within minutes has placed it at the forefront of the rapidly growing quick commerce sector, with Swiggy Instamart now contributing a significant portion to its overall revenue.
Swiggy has also enhanced its customer experience by expanding its offerings to include restaurant subscriptions, allowing users to access exclusive deals and discounts. Additionally, Swiggy’s introduction of an integrated logistics platform has enabled it to tap into the growing e-commerce sector, further diversifying its revenue streams.
The company’s strategy to focus on hyperlocal delivery, quick commerce, and digital-first solutions has proven successful, and it is likely to continue thriving in 2025 and beyond.
Worst Performing Startups: Stumbling Amid the Unicorn Hype
While India has witnessed impressive growth in the startup sector, some unicorns have struggled in 2024. The reasons for their underperformance vary—from internal inefficiencies and lack of innovation to external market conditions that have put immense pressure on business models.
1. OYO: Scaling Back Amid Financial Challenges
Sector: Hospitality & Travel
Valuation in 2024: $5 Billion (Down from $10 Billion in 2022)
Revenue Decline: 20% YoY
Key Factor: Operational Overreach and Regulatory Scrutiny
OYO, the hospitality tech giant, has faced significant challenges in 2024. After expanding aggressively across the globe, the company has faced mounting pressure to scale back due to operational inefficiencies and regulatory hurdles in key international markets. The once-high-flying startup has had to close down several underperforming international operations and focus on improving profitability in its core Indian market.
The company’s financials have been under scrutiny, and its inability to achieve sustainable profitability has led to a drop in its valuation. While the company has made strides in consolidating its operations and focusing on better quality control, it remains uncertain if OYO can regain its former valuation in the near future.
2. UrbanClap (Urban Company): Struggling with Profitability Despite Growth
Sector: Home Services & Tech
Valuation in 2024: $2.5 Billion (Down from $3 Billion in 2023)
Revenue Growth: 15% YoY
Key Factor: Competitive Pressure and High Customer Acquisition Costs
UrbanClap, now rebranded as Urban Company, has faced difficulties in scaling profitably despite significant growth in the home services sector. The company’s business model, which relies heavily on customer acquisition through digital marketing and discounting, has resulted in increasing customer acquisition costs. Moreover, competition from unorganized players and larger tech-driven platforms offering similar services has hurt its growth.
UrbanClap has been unable to break even or scale profitably, leading to questions about its long-term sustainability. In 2024, despite maintaining a strong user base, the company’s lack of differentiation and growing competition has hindered its performance.
3. Meesho: Facing Pressure from E-commerce Giants
Sector: Social Commerce & E-commerce
Valuation in 2024: $3.5 Billion (Down from $5 Billion in 2022)
Revenue Decline: 10% YoY
Key Factor: Aggressive Competition from Amazon and Flipkart
Meesho, the social commerce unicorn, has struggled to maintain its momentum in 2024. While its platform allows small businesses and resellers to sell products online, Meesho faces intense competition from established e-commerce giants like Amazon and Flipkart, which have ramped up their focus on similar business models.
Despite having a strong presence in tier-2 and tier-3 cities, Meesho has been unable to achieve the same level of scalability and profitability as its larger competitors. In 2024, the company has scaled back some of its initiatives, focusing on operational efficiency and cost-cutting to survive in a highly competitive e-commerce landscape.
Conclusion: India’s Unicorn Landscape – Resilient Yet Fragile
As India’s startup ecosystem continues to mature, the market’s unicorns are facing a combination of opportunities and challenges. While some startups are thriving through innovation, global expansion, and diversification, others are struggling to maintain their valuations amidst competition, regulatory pressures, and operational inefficiencies.
For investors, entrepreneurs, and consumers alike, 2024 serves as a reminder that the startup ecosystem is volatile. While the promise of unicorn status is tempting, sustainable growth remains the true challenge. In the coming years, the companies that succeed will be those that focus on profitability, adaptability, and long-term value creation, rather than just chasing growth at all costs.
