India Needs ‘Indicorns’ Over Unicorns

From Unicorns to Indicorns: Charting India’s Sustainable Startup Revolution
The startup world has long been obsessed with unicorns—those mythical billion-dollar companies that symbolize Silicon Valley-style success. But in India, a new breed of startups is rewriting the playbook. Kunal Bahl, co-founder of Snapdeal and Titan Capital, is leading the charge with a rallying cry for “Indicorns”: profitable, homegrown businesses that prioritize sustainability over vanity metrics. Forget chasing unicorns; India’s future lies in building an army of Indicorns that generate jobs, fuel local economies, and stand the test of time.
This isn’t just jargon. It’s a seismic shift in mindset. While unicorns often burn cash to chase hypergrowth, Indicorns focus on unit economics, operational efficiency, and deep roots in India’s unique market. The 2025 Indicorn list reveals 202 startups raking in over ₹100 crore annually, collectively turning a profit of ₹7,393 crore while employing 1.46 lakh people. From logistics to SaaS, these companies prove you don’t need a billion-dollar valuation to make a billion-dollar impact.
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Why Indicorns Outshine Unicorns in the Long Run
1. Profitability Over Hype
Unicorns thrive on “growth at all costs,” often bleeding red ink for years. Think of ride-hailing apps subsidizing fares or food delivery startups spending 80% of revenue on customer acquisition. Indicorns flip the script. Take Zoho, a bootstrapped SaaS giant that rejected VC money, or Boat, the audio brand that turned profitable before hitting unicorn status. These companies grow sustainably because they solve real problems—not just investor fantasies. As Bahl notes, “A billion-dollar valuation means nothing if your P&L looks like a shipwreck.”
2. Job Creation as a Growth Engine
Unicorns often automate jobs to please shareholders; Indicorns create them to power communities. Consider the 1.46 lakh jobs supported by Indicorns—many in tier-2 cities where traditional unicorns rarely tread. Logistics startup Delhivery, for example, employs thousands in warehousing and last-mile delivery, while agritech firm Ninjacart uplifts rural farmers. Unlike Uber’s gig economy model, Indicorns offer stable employment, fueling broader economic resilience.
3. Local Innovation for Local Problems
Silicon Valley’s “copy-paste” startup model—think Indian versions of Uber or Airbnb—often stumbles on local realities. Indicorns innovate from the ground up. Healthtech startup Practo tailored its doctor-discovery platform for India’s fragmented healthcare system, while fintech firm Jupiter built banking solutions for millennials overlooked by traditional banks. Bahl urges startups to incorporate in India (not Delaware) to access local VC funding and regulatory benefits—a move that keeps wealth and IP within the country.
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The Roadmap to 10,000 Indicorns
Investors: Trade FOMO for Patience
VCs must stop treating startups like lottery tickets. Instead of demanding 100x returns in five years, they should back founders building durable businesses. India’s SaaS sector—with its capital-efficient, globally competitive models—shows the way. Firms like Peak XV (formerly Sequoia India) now earmark funds for “slow burn” startups, signaling a shift toward sustainable bets.
Policymakers: Build the Runway
Simplified compliance, tax incentives for profitable startups, and easier ESOP rules can turbocharge Indicorns. The Production-Linked Incentive (PLI) scheme, which boosted manufacturing startups like Dixon Technologies, is a blueprint. Next, India needs a “Profitability First” policy—think grants for startups crossing ₹100 crore revenue without VC dependence.
Entrepreneurs: Think Marathon, Not Sprint
Founders must resist the siren song of vanity metrics. Bahl’s own journey with Snapdeal—which pivoted from discounts to sustainable e-commerce—proves that profitability and purpose aren’t mutually exclusive. The next wave of Indicorns will emerge from sectors like climate tech (e.g., battery recycling startup Lohum) and vernacular content (Pratilipi), where solving local problems unlocks global potential.
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Docking at the Future
The unicorn era isn’t dead—it’s just evolving. India’s startup ecosystem is maturing beyond valuation theatrics to embrace businesses that balance scale with substance. Indicorns represent this new ethos: companies that grow like banyan trees (deep roots, wide shade) rather than bamboo shoots (fast, hollow). With investors, policymakers, and founders rowing in unison, Bahl’s vision of 10,000 Indicorns isn’t a pipe dream—it’s India’s ticket to becoming a $10 trillion economy.
So, let’s retire the unicorn trophy case. The real winners? They’re the Indicorns quietly building India’s economic backbone—one profitable job at a time.