India's startup ecosystem shows decline in unicorn creation

India experienced a decrease in unicorn creation for the first time since 2017, as per the latest Hurun Global Unicorn Index. In 2023, India had 67 unicorns, one less than the previous year's count of 68.

The United States leads the index with 703 unicorns, followed by China with 340. The United Kingdom and the European Union secured the fourth and fifth positions, respectively.

The decline in India's unicorn creation is attributed primarily to a lack of investment in startups, despite the recent surge in stock market performance.

“India’s start-up ecosystem has slowed, with the number of unicorns down for the first time since the launch of Hurun list,” the report noted.

As per Business Today, Anas Rahman Junaid, Founder and Chief Researcher at Hurun India, said: "The slowdown is primarily fuelled by lack of investment into start-ups despite the recent stock market record highs."

He also noted that as per the findings of the report Indian founders are establishing more unicorns abroad than at home, with a majority in the United States.

However, India stands out for producing more offshore unicorns than any other country, co-founding 109 unicorns outside India, compared to 67 within the country.