From Unicorns to Dropouts: The 16 Indian Startups That Lost Their Billion-Dollar Tag - Report

The ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025 has revealed a striking trend: India’s unicorn ecosystem is not just expanding, but also churning.

While 11 new unicorns joined the coveted list this year, 16 startups lost their unicorn or future unicorn status, underscoring how fragile valuations can be in a volatile market.
The report, released in Mumbai on September 11, notes that India is home to 73 unicorns, 46 gazelles, and 104 cheetahs, startups valued at more than $200 million and tipped to become unicorns within five years.

Online Gaming Bill 2025: A Death Knell for RMG Valuations
The most visible exits came from the real-money gaming (RMG) sector. Companies such as Dream11, Mobile Premier League (MPL), Gameskraft, Games24x7, Zupee, and WinZO were all knocked off the list.

The Promotion and Regulation of Online Gaming Bill, 2025 introduced a new nationwide framework separating “games of skill” from “games of chance.” It mandated central licensing, imposed tighter restrictions on advertising, and significantly raised tax obligations.

According to the report: “These changes have hit the valuations of India’s most prominent real money gaming companies. Dream11, Games24x7, Gameskraft, MPL, Zupee, and WinZO now face higher costs to follow the rules, tougher tax requirements, and limits on promotions, slowing down their growth”.

In short, the policy reset dented investor confidence, and companies once celebrated as high-growth unicorns found themselves downgraded.

Beyond Gaming: Market Corrections Take Their Toll
While gaming firms bore the brunt of regulatory headwinds, other startups were victims of global funding winters and valuation corrections. The Hurun report highlights how international investors are now more focused on profitability, capital efficiency, and sustainable growth models, rather than funding aggressive cash-burning expansions.
Rajesh Saluja, CEO & MD of ASK Private Wealth, said:  “What is particularly encouraging is the growing focus on profitability, sustainable models, and capital efficiency, hallmarks of businesses that endure and scale globally. These ventures are no longer just participating in India’s growth story; they are creating benchmarks that resonate across international markets”

This shift has particularly impacted consumer-facing and discretionary e-commerce ventures that struggled to maintain pandemic-era growth momentum.

IPOs: From Unicorn to Public Market Player
Another factor in the churn is successful IPOs. Once a unicorn lists on public exchanges, it exits the Hurun index. In 2025, five major unicorns went public:
Swiggy (food delivery)
Ola Electric (electric vehicles)
Digit Insurance (insurtech)
FirstCry (e-commerce)
BlackBuck (logistics)

Their IPOs drew massive investor interest, with Swiggy debuting at a valuation of ₹92,224 crore ($12.1 billion), making it one of the year’s most-awaited listings.
 

New Unicorns Fill the Gap
Even as 16 startups fell off, India minted 11 new unicorns in 2025, including Ai.tech, Navi Technologies, Moneyview, Rapido, Netradyne, DarwinBox, Juspay, Veritas Finance, Drools, Jumbotail, and Vivriti Capital

Ai.tech, founded by serial entrepreneur Divyank Turakhia, became the fastest unicorn in 2025, reaching a $1.5 billion valuation in under three years. This reflects how AI, fintech, and CleanTech are now leading India’s next wave of unicorn creation.

Churn Reflects a Maturing Ecosystem

As Anas Rahman Junaid, Founder of Hurun India, summed up: “Tracking unicorns is equally important, as they represent India’s most valuable and disruptive companies that are already shaping industries, creating large-scale employment, and attracting global capital. Together with future unicorns, they provide a complete picture of India’s innovation pipeline”

The churn of 2025 sends an important message: India’s unicorn ecosystem is no longer about unchecked growth. Startups must now adapt to regulations, prove profitability, and plan sustainable IPOs. While gaming firms struggled, AI, SaaS, and fintech are thriving, showing that the country’s innovation engine is far from slowing down.

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