India Needs ‘Indicorns’ Over Unicorns

The Rise of Indicorns: Why India’s Startup Ecosystem Needs a New Benchmark for Success
The global startup world has long been obsessed with unicorns—those mythical billion-dollar valuations that turn founders into rockstars and investors into legends. But in the crowded bazaars of Mumbai and the tech hubs of Bangalore, a quiet revolution is brewing. Kunal Bahl, co-founder of Snapdeal and Titan Capital, is calling for India to ditch its unicorn fixation and embrace a new breed of startups he calls “Indicorns.” These aren’t just companies chasing sky-high valuations; they’re profitable, sustainable, and built for India’s unique economic terrain. Forget Silicon Valley’s playbook—this is about rewriting the rules for a market where scalability meets reality, and where “growth at all costs” could mean bankruptcy by Diwali.

The Unicorn Trap: Why India Needs a Different Playbook

Let’s face it: the unicorn model was never designed for India. Born in the U.S., it thrives on cheap capital, hyper-scaling, and exits fueled by IPO mania or acquihires. But India’s economy dances to a different tune—one where profitability often takes a backseat to survival. Bahl argues that chasing unicorns has led to a dangerous game of musical chairs, where startups burn cash to inflate valuations, only to collapse when funding dries up. Remember WeWork? Yeah, India doesn’t need that kind of drama.
Instead, Bahl’s vision for Indicorns focuses on three pillars: revenue, jobs, and sustainability. These companies may not make headlines with billion-dollar funding rounds, but they’re quietly building empires. Take Zerodha, India’s largest stockbroker, which bootstrapped its way to profitability without a single dollar of venture capital. Or consider companies like Zoho, which rejected Silicon Valley’s siren song to build a global SaaS giant from Chennai. These aren’t unicorns—they’re warhorses, built for the long haul.

Indicorns in Action: How Profitability Beats Hype

Bahl’s research identifies 187 Indicorns in India today—companies with cumulative revenues exceeding $1 billion and over 92,000 jobs created. These firms aren’t just surviving; they’re thriving by solving real problems for real customers. Unlike unicorns, which often rely on subsidies and discounts to fuel growth, Indicorns prioritize unit economics. For example, fintech startup BharatPe turned profitable by focusing on small merchants, a segment unicorns often ignore.
The Indicorn model also tackles one of India’s biggest startup headaches: brain drain. When founders chase unicorn status, they often incorporate overseas (hello, Delaware LLCs!) to attract foreign investors. But Bahl argues this strips India of tax revenue, talent, and control. Indicorns, by contrast, stay rooted domestically, leveraging local capital and regulatory advantages. Take PharmEasy, which raised funds from Indian VCs and scaled without fleeing to Singapore. The result? A stronger ecosystem where success benefits India, not just offshore funds.

Beyond Unicorns: Building a Self-Reliant Economy

India’s $5 trillion GDP dream won’t be realized by a handful of unicorns burning through Saudi sovereign wealth. It’ll take thousands of Indicorns—companies that create jobs, pay taxes, and reinvest in local communities. This isn’t just patriotic; it’s pragmatic. Consider the ripple effects:
– Reduced foreign dependence: Unicorns often rely on global capital, leaving them vulnerable to market swings (see: the 2022 startup winter). Indicorns, funded by local VCs, are insulated from such shocks.
– Inclusive growth: While unicorns cater to urban elites, Indicorns like Udaan (a B2B marketplace for small towns) democratize opportunity.
– Sustainability: Profitability isn’t just good for balance sheets—it’s good for the planet. No more “growth by dumping subsidized e-scooters in landfills.”

The Road Ahead: From Unicorn Fantasies to Indicorn Realities

The unicorn era isn’t over, but its flaws are glaring. India’s startup ecosystem is maturing, and with maturity comes wisdom—the kind that values revenue over vanity metrics. Bahl’s Indicorn framework isn’t about rejecting unicorns; it’s about expanding the definition of success.
For policymakers, this means incentivizing profitability over valuation. For investors, it means backing founders who care about margins, not just market share. And for entrepreneurs? It’s a wake-up call: building a lasting business beats chasing a mythical creature any day.
As India’s economy evolves, the Indicorn model offers a blueprint for resilience. No more boom-bust cycles, no more “scale now, profit never” delusions. Just solid, sustainable growth—the kind that builds nations, not just billionaires. So, to India’s founders, we say: Ditch the unicorn chase. It’s time to saddle up an Indicorn instead.