By Abhay Ray 
Introduction
India’s startup ecosystem has rapidly evolved over the past decade, growing from a budding sector to one of the most vibrant in the world. The country, which recently crossed the milestone of 100 unicorns startups valued at over $1 billion is now home to more than 118 such companies, with a combined valuation of $354 billion. This impressive rise has been fueled by significant funding, which has surpassed $100 billion, and the country’s transformation into a global startup powerhouse. One prominent figure in this ecosystem, Kunal Bahl, has a vision that challenges the prevailing notion of unicorns and offers a new framework for success in the Indian startup world. Rather than chasing billion-dollar valuations, Bahl advocates for the emergence of “Indicorns” businesses that are profitable, sustainable, and focused on long-term value creation. These Indicorns are defined not by their valuations, but by their ability to generate substantial revenue, employ people, and deliver lasting business impact.
Rethinking Unicorns – The Case for Indicorns
Kunal Bahl, co-founder of Snapdeal and Titan Capital, has long been a vocal advocate for a shift in how startups define success. “I don’t like the term unicorns. It’s a mythical creature. But a business that’s generating ₹100 crore in revenue, is profitable, and has been running for 15 years that’s an Indicorn,” he remarked in a recent interview. Bahl believes that businesses should focus not on chasing a billion-dollar valuation, but on building companies that endure, create value, and make a real impact on the economy.
The rise of the unicorn is often celebrated in the Indian startup ecosystem, but Bahl believes it is time for a paradigm shift. In his eyes, unicorns represent fleeting success, while Indicorns embody sustainable growth. “India needs thousands more Indicorns,” Bahl emphasized. Instead of focusing on a few hundred billion-dollar companies, he argues, India would benefit more from a large number of successful, sustainable businesses that create jobs and contribute to the economy over the long term.
The Changing Landscape of India’s Startup Ecosystem
Over the past decade, India’s startup ecosystem has undergone a profound transformation. From a time when there was debate over whether India had 25 million or 50 million internet users, the country now boasts over a billion connected consumers. This transformation has been facilitated by advancements in digital payments, the rise of UPI, and improved access to capital. With these developments, India has become an incredibly high-growth, high-potential market, offering opportunities across sectors such as SaaS, fintech, agri-tech, AI, space tech, and defense.
For Bahl, the key to long-term success in India’s startup ecosystem lies in making well-thought-out choices. “Entrepreneurship is a 10, 15, 20-year journey. Yet, many founders spend just two weeks deciding what to build. I tell them—take six months if needed, because the right choice will determine your long-term success,” Bahl advises. His words are a call for Indian founders to take their time, understand market opportunities, and make deliberate decisions about what to build.
The shift toward sustainability in the startup world is not just about surviving in the market but about thriving by creating enduring businesses that solve real problems. The emergence of new sectors like AI and space tech presents massive opportunities for entrepreneurs to build businesses that go beyond just consumer tech, and Bahl believes that India’s true differentiator lies in its ability to create businesses that stand the test of time.
Principles for Startup Success
Kunal Bahl’s principles for building successful businesses revolve around a few key pillars. First, he stresses the importance of solving one problem at a time. Instead of chasing multiple opportunities, which can lead to a dilution of focus, Bahl encourages founders to be disciplined in their approach and remain laser-focused on solving one key problem.
Second, Bahl highlights the significance of ensuring that the unit economics of a business are strong from the outset. Solid unit economics form the foundation of a sustainable business, and this discipline is vital for companies as they scale. Having a clear understanding of how every unit of the business contributes to profitability is crucial for long-term success. Lastly, Bahl underscores the importance of being cost-conscious, even after raising capital. While capital is essential for growth, it should be used wisely. Keeping a lean fixed cost structure is vital for weathering economic downturns, and startups that are too aggressive in chasing growth at the expense of financial stability often face difficulties when market conditions change.
The Role of India’s Startups in Job Creation and Economic Growth
Bahl’s call for more Indicorns goes beyond the realm of business growth it’s also about creating employment opportunities and contributing to economic growth. The Indian government’s Startup India initiative, launched in 2016, has been instrumental in fostering a strong ecosystem for innovation. As of June 2024, the initiative has recognized over 140,000 startups, contributing to the creation of more than 1.5 million direct jobs. Bahl envisions a future where India’s startups not only contribute to the national economy but also provide long-term employment for millions of people.
Incorporating Locally – A Pragmatic Approach
Another aspect of Bahl’s philosophy is his advocacy for Indian startups to incorporate locally rather than opting for foreign jurisdictions like Singapore or the US. For years, Indian founders believed that incorporating overseas would make fundraising and exits easier. However, Bahl argues that this practice has become outdated. “In 2025, incorporating in India isn’t just patriotic it’s pragmatic,” he asserts, pointing out that Indian investors now back startups in a variety of sectors, including DeepTech and AI, making it easier for founders to find funding within the country.
The Future of India’s Startup Ecosystem
India’s startup ecosystem is at a crossroads. With more than 100 unicorns and a growing number of startups crossing the ₹100 crore revenue threshold, the country is well-positioned for future growth. However, the future of India’s startup landscape will not be defined by the number of unicorns but by the emergence of thousands of Indicorns businesses that are built to last, create employment, and contribute to India’s long-term economic growth. By focusing on building businesses that can endure, entrepreneurs in India have the opportunity to redefine success and create a lasting impact on the country’s economy.
Conclusion
Kunal Bahl’s vision challenges the startup status quo by prioritizing sustainable growth over inflated valuations. His concept of “Indicorns” urges Indian entrepreneurs to build profitable, purpose-driven businesses that generate long-term value, employment, and resilience. As India’s startup ecosystem matures, the focus must shift from chasing unicorn status to nurturing companies that endure and uplift the broader economy. With over 140,000 recognized startups and increasing investor support within the country, the future lies in smart, sustainable entrepreneurship. By embracing this pragmatic approach, founders can truly redefine what success means in the Indian startup landscape.
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