Despite funding winter, Hurun says 122 more startups can become unicorns in 4 years

Despite the ongoing 'funding winter' which can impact start-up valuations, the number of unicorns or startups valued at over USD 1 billion will grow by 122 to cross the 200 companies mark in the next four years, a report said on Wednesday.

The number of unicorns stand at 84 right now as against 51 in the year-ago period, and there are 122 others valued at over USD 200 million which can achieve the unicorn status in the next 2-4 years, Hurun Research Institute said.

According to reports, a 'funding winter' is upon the otherwise fledgling Indian startup ecosystem due to various reasons like liquidity conditions getting tighter all across the world.

The report, which has been done in association with ASK Private Wealth, said the 122 companies most likely to achieve the 'unicorn' status are valued at USD 49 billion, which is a 36 per cent jump since last year.

These 122 companies employ 82,300 people at present, as per the ASK Private Wealth Hurun India Future Unicorn Index 2022.

Venture capital fund Sequoia is the most popular backer of such companies, with 39 of the 122 having received funding from it, and is followed by Tiger Global in 27.

The list classified start-ups into two, and said that 51 companies can achieve unicorn status in two years while 71 can do so in up to four years.

The 2017-founded logistics tech start-up Shiprocket is most likely to achieve the unicorn status, followed by quick commerce company Zepto and e-commerce player Turtlemint, it said.

"The country's start-up ecosystem is expanding at an unprecedented rate. In just one year, the number of Unicorns has increased by 65 per cent," Hurun India's managing director and chief researcher Anas Rahman Junaid said.