India’s most valuable unicorns faced a turbulent FY24, marked by deceleration in revenue growth and persistent but narrowing losses. For the 20 highest-valued unicorns tracked, overall revenue growth slowed to just 5.5%, a steep fall from 32% in FY23. The sharp decline reflects a broader market correction, with startups shifting from hyper-growth to a more cautious, sustainability-driven strategy.
Yet, the year wasn’t without progress. Aggregate losses among these unicorns declined significantly from Rs 22,886 crore in FY23 to Rs 14,914 crore in FY24. Fourteen of the 20 startups still posted losses, down from 15 in the previous financial year, while results for two were not available. Flipkart, the largest player among them, exemplified the trend. Its revenue growth slowed to 21% from 39% in FY23, amid rising logistics expenses and intensifying competition from retail giants. Fintech unicorns Razorpay, Pine Labs, and CRED also experienced a marked slowdown. CRED’s revenue grew by 66% to Rs 2,473 crore, down from 251% the year ago. Razorpay’s growth slumped to 8.4% from 54%, while Pine Labs reported nearly flat revenue at Rs 1,317 crore, following 26% growth a year earlier.
Several firms even saw their top lines shrink. Ride-hailing major Ola Cabs, online pharmacy PharmEasy, edtech company Unacademy, and SaaS platform Chargebee, all reported lower revenue than the previous year, often due to operational hurdles or sector-specific pressures. PharmEasy, for instance, saw revenue fall by 15% after a modest 16% increase in FY23, squeezed by price competition in the online drug market.
One notable exception was Zepto, the quick-commerce unicorn, which doubled its revenue. The 120% rise, though far slower than its eye-popping 1,323% growth in FY23, still marked strong momentum driven by rapid urban expansion and customer acquisition.
Hospitality firm Oyo reported nearly flat revenue at Rs 5,388.7 crore, marginally down from Rs 5,463.9 crore. However, it marked a major milestone by turning profitable, with a net profit of Rs 229.5 crore, reversing a Rs 1,286.5-crore loss in the previous year. This shift was driven by a 16% cut in overall expenditure.
Unacademy, while seeing a 5.3% revenue dip to Rs 988.4 crore, significantly narrowed its net loss to Rs 631 crore from Rs 1,678 crore in FY23.
According to its co-founder Gaurav Munjal, the company has slashed its annual cash burn from Rs 1,400 crore two years ago to Rs 300 crore, targeting sub-Rs 100 crore burn in 2025 and group-level profitability by 2026.
Other unicorns also showed signs of financial discipline. B2B e-commerce platform Udaan trimmed losses by 19.4% to Rs 1,674.1 crore through a combination of cost-cutting in logistics and employee benefits. Fintech major PhonePe reduced its losses by nearly 30% to Rs 1,996 crore, thanks to growth in UPI-based transactions and lending. Adjusted for ESOP costs, the firm even posted a profit of Rs 197 crore.
Groww, the country’s largest discount broker by user base, reported a headline loss of Rs 805 crore due to a one-time tax hit following its India domicile shift. Excluding this charge, it posted an adjusted net profit of Rs 535 crore, up from Rs 458 crore in FY23.
Analysts said that the FY24 trends underscore a maturing startup landscape, where the unicorns are increasingly prioritising profitability over aggressive growth. Investors, cautious after inflated valuations in prior years, are demanding clearer paths to financial stability, pushing startups to streamline operations. While the marginal improvement in loss-making firms offers optimism, the sharp revenue growth slowdown highlights the challenges ahead. According to analysts, as these unicorns navigate this tougher environment, their ability to balance growth with profitability will be crucial to maintaining their valuations in an increasingly scrutinised market.