India has 7 unicorns – and they're just part of the country's growth story

Bhavish Aggarwal, CEO and co-founder of Ola, an app-based cab service provider, poses in front of one of the company's vehicles..
Bhavish Aggarwal, CEO of app-based cab company OlaImage: REUTERS/Shailesh Andrade

Unicorn. Single-horned mythical creature. Or a private company valued at over US$1 billion.

In India, and around the world, both were once nothing more than fantasy. Now though, as India’s economy grows and tech start-ups pop up everywhere, India can boast seven. (That’s private companies, not mythical creatures.)

India’s 7 unicorns

Image: World Economic Forum

Seven companies on Fortune’s 2016 Unicorn List are in India. That’s more than South Korea, the Netherlands and Canada combined.

The biggest is Flipkart, an e-commerce firm based in Bengaluru (also called Bangalore). Its valuation is nearly three times higher than second-placed Ola.

The majority of Indian unicorns are focused on e-commerce. This latter is an area of great potential in India. Underpinned by an enormous and increasingly well-educated youth population, e-commerce is set to drive consumer spending, according to a Goldman Sachs report.

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Government support

The Indian government’s Start-up India initiative aims to encourage entrepreneurship and innovation, with the goal that “India must become a nation of job creators instead of a nation of job seekers”.

A strong demographic dividend, entrepreneurial ecosystem and vast potential domestic market are all vital factors in India’s potential. And healthy economic growth is predicted.

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The World Economic Forum’s India Economic Summit 2016 will take place from 6-7 October.

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