Indian unicorns on average have more than one founder, with 78 per cent of co-founder led startups reaching the unicorn status, according to a PrivateCircle report.



The analysis revealed that the average revenue generated by cofounder unicorns was 32 per cent higher at Rs 2,909 crore, as compared to that of solo founder unicorns at Rs 2,196 crore.

Considering the latest revenue numbers for each company, this underlines a higher investment ratio for startups with two or more founders, with co-founder led companies also taking a lead in raising investments, the research suggested.

Commenting on the trend, Director of Research at PrivateCircle Murali Loganathan said, "The founding team size dilemma is one of the oldest dilemmas faced by startup founders. Ultimately, the choice depends on the individual's temperament, goals, and the specific dynamics of the venture they are embarking upon. Variation in central tendencies of both the groups indicates that investors prefer co-founder led companies. It can also be a function of co-founders being able to tap a larger network of contacts.” 

The higher average revenue of co-founder led companies hints towards two or more founders bringing in complementary skills and broader networks, which can lead to more effective resource utilisation and greater business success consequently, he added.

As per the analysis, 22 per cent of Indian unicorns, or about 24, were started by solopreneurs with Bengaluru emerging as the most preferred headquarters location for their ventures in the previous decade.

Of these 24 unicorns, 40 per cent or close to 10 startups are in the fintech space - including Kunal Shah-founded CRED, Slice founded by Rajan Bajaj, Kamesh Goyal-founded GoDigit Insurance and Acko led by Varun Dua. 

Six of these solopreneur-led unicorns have launched successful IPOs, while seven unicorns led by founding teams have been listed on the stock exchange.

Bengaluru emerged as the leading destination for solopreneur-founded unicorns raising large funds, the PrivateCircle data suggested.

While the journey of solopreneurs gives decision autonomy and helps avoid co-founder conflict, it can also limit networking opportunities and resources.  

The study considered 113 unicorns for the analysis, with 61 of them founded in the last decade itself.