At least four Indian real-money gaming (RMG) startups, including fantasy sports giant Dream11 and online gaming platform Games24x7, have lost their unicorn status following the government’s new law regulating online money games. The other two affected firms are Gameskraft, which has 30 million users, and Mobile Premier League (MPL), which boasts 90 million users, according to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025.
Unicorns are defined as startups valued at $1 billion or more. Dream11, once India’s most prominent fantasy sports startup with 260 million users, and Games24x7 with 120 million users, were among the most high-profile names impacted. The report added that valuations of Zupee and Winzo Games, which were not unicorns, have also taken a hit due to the regulatory changes.
New law reshapes gaming industry
Last month, Parliament passed a bill banning all forms of online money games while promoting eSports and online social gaming. The law prohibits advertisements for money games and bars banks and financial institutions from processing related transactions.
“These changes have hit the valuations of India’s most prominent RMG companies,” the report noted, highlighting that limits on promotion and stricter taxation have further dented growth prospects. Investor confidence has also weakened, though analysts believe the law may help the industry build greater trust and stability in the long run.
In the immediate aftermath, RMG companies scaled back on marketing, pulled out of high-profile sponsorships, including that of the Indian cricket team and laid off significant portions of their workforce.
Unicorn club continues to expand
Despite the decline in gaming valuations, India’s overall unicorn count has risen. The report said 11 new startups joined the unicorn club this year, taking the total to 73. The fresh entrants include Ai.tech, Navi Technologies, Vivriti Capital, Veritas Finance, Rapido, Netradyne, Jumbotail, DarwinBox, Moneyview, Juspay, and Drools.
Discount brokerage Zerodha was crowned the country’s most valuable startup at $8.2 billion, followed by fintech Razorpay and eyewear brand Lenskart at $7.5 billion each. Bengaluru continues to dominate as India’s unicorn hub with 26 startups worth a cumulative $70 billion, ahead of Delhi-NCR (12 startups worth $36.3 billion) and Mumbai (11 startups worth $22.8 billion).
The report also noted that high-value startups, those worth over $200 million, employ 3.74 lakh people, with unicorns alone accounting for 2.06 lakh jobs. Venture capital firm Peak XV Partners emerged as the most influential investor, with 68 startups in this category, including Groww, Turtlemint, and Oyo’s PRISM.
“Amid concerns around cash burn, founders and investors are increasingly focusing on profitability, capital efficiency, and sustainable business models,” said Rajesh Saluja, managing director and CEO, ASK Private Wealth.