What's a 'unicorn' in the world of start ups?

As you might know, unicorns are mythical creatures. In the world of startups, it is near-impossible to come across companies which have surpassed US$1 billion and are still standing. Such startups, which are also privately owned and not listed on the share market, are called 'unicorns' in the finance world.

Startups in India are reaching $1 billion sooner than ever to become 'unicorns'

The now often-used Silicon Valley term was first published in 2013, coined by venture capitalist Aileen Lee. The mythical animal to represent the statistical rarity of such successful ventures. At the time her article got published, only 39 companies were identified as unicorns.

In India, for example, there are approximately 73 unicorns as of September 2025. As new companies join the list and valuations change, the list gets updated.  Some of the most valuable unicorns include Zerodha, worth $8.2 billion, Razorpay worth $7.5 billion and Lenskart valued at $7.5 billion.

Bengaluru is the city with the most unicorns, followed by Delhi NCR and Mumbai. As of mid-2025, a LinkedIn post claimed that even Kolkata is home to some unicorns, namely, Wow! Momo, ShopsyMart and EduNext.

It may take up to 7 years or more for Indian startups from incorporation to achieve unicorn status. In fact, the overall median time to hit unicorn status has gone down significantly in recent years. For startups founded after 2020, the median time is just 1 year, compared to 26 years for companies established before 2000.

A recent report has also revealed that the average number of years required for an India startup to become a unicorn declined from 8.4 years in 2022 to 5.5 years in 2023.

But it matters what sector the startup is in. An Ecommerce startup median time to reach unicorn status may be a minimum of 6 years as opposed to median times of 7, 8 and 8.5 years for Foodtech, media and entertainment startups.

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