There were also other issues, including regulatory actions by financial sector watchdogs, which put question marks over some fintechs’ valuations like in the buy now pay later segment and also growing insistence on profitability by the external investors, he said.
Hurun India’s Anas Rahman Junaid said the uneven consumption growth may also have impacted valuations in some cases.
Venture funds are preferring to hold on to cash due to lack of sufficient opportunities, Saluja said, adding the industry is witnessing only 35-40 percent of committed amounts being drawn down. However, higher play by high net worth and ultra high net worth families has helped minimise the impact of the funding winter on the ecosystem, Saluja said, adding that 2023 saw only $8 billion inflows in startups as against $38 billion in 2022. Peak XVPartners continues to be the most active investor in the list with 47 bets, while Anand Chandrasekaran is the leading angel investor with stakes in 20 future unicorns, it said.
The report said 35 domestic future unicorns have overseas headquarters, which includes 31 in the US, two in Singapore and one each in England and Vietnam.
Bengaluru continues to be the future unicorn capital of the country, being home to 46 of them, followed by Delhi-NCR at 29 and 19 in Mumbai.