Beyond the valuation bubble: India’s 7 unicorns which are actually profitable

According to a report by India Invest, the Indian startup ecosystem has emerged as the third-largest ecosystem for startups globally with over 99,000 registered startups across the country. 

As of May 31, 2023, India is home to 108 unicorns with a total valuation of $340.80 billion (Rs 28.33 lakh crore) but surprisingly, most of these unicorns are not making any profits. However, not all of them fall into the same category. Here is a list of seven profitable unicorns of India which are making significant profits for their investors. 

India’s 7 profitable unicorns

Zoho

Zoho is an Indian software startup that provides cloud-based software solutions for businesses of all sizes. Its diverse suite of applications streamlines operations across various industries.

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In 2022, Zoho achieved an impressive $255.7 million (Rs 2,125.16 crore) in profit. The company's profitability reflects its consistent growth and global presence. With over 8 crore active customers and usage by 50,000 organisations across 160 countries as of November 2022, Zoho has established itself as a leading provider of software solutions. 

The company's substantial investments, including a recent contribution to GenRobotic, continue to reinforce its expansion.

Zerodha

Zerodha, an Indian discount broking startup has played a transformative role in the country's investment landscape. Known for its user-friendly platforms and competitive pricing, the company has attracted a significant customer base.

Image credit: Zerodha

Zerodha is projected to achieve a post-tax profit of Rs 2,354 crore for FY23, marking a moderate 12 per cent increase from the previous fiscal's Rs 2,094 crore, as per HDFC Securities. 

This growth, however, lags behind in comparison to the substantial 86 per cent surge in profits witnessed in FY22. Zerodha's FY23 revenue estimate stands at Rs 5,459.2 crore, reflecting a 10 per cent rise from FY22's Rs 4,962.9 crore. 

Mamaearth

Founded in 2016 by partners Varun Alagh and Ghazal Alagh, Mamaearth is an Indian startup that specialises in an extensive array of cosmetic products, enhancing customers' daily skincare regimen.

Image credit: Mamaearth

Mamaearth has reported a restated profit after tax of Rs 3.67 crore in H1 FY23, according to its IPO-bound Draft Red Herring Prospectus (DRHP). The brand's first-half total income was Rs 732.06 crore. In FY22, Mamaearth recorded a profit of Rs 14.44 crore and a total income of Rs 952.4 crore. 

Billdesk

Based in Mumbai, BillDesk operates as an online payment gateway company. Offering a comprehensive online payment platform, it facilitates seamless banking and merchant website transactions for its clients.

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Billdesk has recently registered a net profit of Rs 149 crores in FY22, making it one of the few profit-making startups in India. However, this number falls behind Billdesk’s last year's profits amounting to more than Rs 245 crore. 

On the other hand, its revenue from operations jumped 1.1 times to Rs 2,442.8 crore from Rs 2,124.2 crore in FY21. 

Zomato

Zomato, India’s biggest food delivery platform, has also reported a profit for the first time since getting listed in 2021. Zomato posted its first-ever profit on August 3, one quarter earlier than expected, helped by a tax gain and strong orders in its food and grocery delivery businesses.

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Zomato expects its business to remain profitable going forward while delivering a 40 per cent year-on-year topline growth for at least the next couple of years, Chief Financial Officer of Zomato, Akshant Goyal said. 

Dream 11

Dream 11 is India’s biggest fantasy gaming platform and the official sponsor of the Indian cricket team. According to its annual report published in January 2023, Dream 11 recorded a net profit of Rs 142.86 crore in FY22, making it India’s only profitable gaming unicorn. 

Image credit: Dream 11

Dream11, maintained its upward trajectory in FY22, achieving significant growth with a revenue surge of more than 50 per cent, surpassing the Rs 4,000 crore milestone. Dream11's primary revenue generation mechanism involves charging platform fees to users engaging in fantasy sports contests, with this income categorised as gross gaming revenue.

Physics Wallah

Physics Wallah has rapidly emerged as a dominant player in the ed-tech sector in recent years. While established names like Byju's and Unacademy grapple with losses, Physics Wallah has successfully generated substantial profits. 

Physics Wallah began with a founder launching a modest YouTube channel to educate students in physics; it has now evolved into a sprawling startup valued at over a billion dollars. In the current year, Physics Wallah ranks as India's ninth most profitable startup, boasting an impressive profit of Rs 98 crore.