The Glamour of Unicorns Might Momentarily Dim, But Their Absence Doesn't Signify Decline

They say the Indian startup ecosystem has grown up. On the surface, the numbers appear to support this story.

- Charles Assisi

They say the Indian startup ecosystem has grown up. On the surface, the numbers appear to support this story. In just the first three months of 2025, around $3 billion made its way into India's tech startups, marking an increase from last year. Money, it seems, is flowing again. This sounds promising.

Now here's the twist. Not a single new unicorn, those young billion-dollar startups that once made daily headlines, was born during this period. Not one company managed that flashy leap to join the exclusive unicorn club. A year ago, there were at least two that did. The sparkle, the excitement, the unicorn-mania that captured everyone's imagination seems oddly absent. It begs an obvious question: if the money is indeed flowing, why isn't it creating these headline-grabbing companies?

Instead, what's making news now are acquisitions—big companies quietly buying smaller, younger ones. There were 38 such deals in this quarter alone, almost 41% more than the same time last year. These weren't minor exchanges either. Hindustan Unilever spent $350 million to acquire Minimalist, a skincare brand that built itself on Instagram popularity and sleek packaging. Or DS Group that partnered with Patanjali to buy Magma General Insurance for over half a billion dollars.