Building a unicorn company in India, valued at over $1 billion, is an ambitious but achievable goal for entrepreneurs who have a game-changing idea and the persistence to scale. India, with its rapidly growing economy, diverse consumer base, and a thriving startup ecosystem, offers fertile ground for businesses to grow quickly. However, creating a unicorn requires much more than just a great idea. It involves understanding market trends, creating innovative solutions, attracting investment, and scaling rapidly. Let’s explore how entrepreneurs in India have successfully built unicorn companies, and what key steps you can take to replicate their success.
1. Identify a High-Impact Problem and Build a Scalable Solution
A successful unicorn typically solves a real-world problem that affects a large market segment. The first step toward building a unicorn is identifying a problem worth solving and then offering a scalable solution. The solution must have the potential to impact millions of people and should be adaptable to growing demands.
Example: BYJU’S BYJU’S, India’s most successful EdTech unicorn, is a perfect example of solving a widespread problem. Founded by Byju Raveendran in 2011, the company saw an opportunity in the underdeveloped education sector in India. Byju’s developed an interactive online learning platform that used personalized learning techniques, targeting K-12 students and competitive exam aspirants. The company’s ability to make learning engaging through technology helped it scale quickly and appeal to millions of students across the country. BYJU’s success is based on its innovative approach to education and its focus on creating a product that met the diverse learning needs of students.
2. Build a Strong, Complementary Team
A unicorn company is rarely built by one person alone. The team behind a unicorn should have complementary skill sets, ranging from product development to marketing and operations. As a founder, it’s essential to bring together people who not only bring expertise to the table but also share your passion and vision.
Example: Swiggy Swiggy, one of India’s most well-known unicorns, was founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. While Majety brought the vision of an efficient food delivery service, Reddy and Jaimini contributed with their technical expertise and operational capabilities. Together, they created a solution that streamlined food delivery and tackled issues like late deliveries and inefficiencies in the existing food service model. Their complementary skills, along with a customer-first approach, helped Swiggy grow from a small startup to one of India’s most successful unicorns.
3. Focus on Product-Market Fit
A product-market fit (PMF) is crucial to a unicorn’s journey. It means that the product not only solves a real problem but also resonates with the target market. Achieving PMF is one of the most critical steps, as it validates that there is demand for your product or service.
Example: Ola Ola, the ride-hailing service founded by Bhavish Aggarwal and Ankit Bhati in 2010, achieved its product-market fit by addressing the needs of urban commuters in India. At the time, the Indian transportation landscape was dominated by inefficient and often unsafe taxis. Ola introduced a convenient app-based platform that allowed users to book rides easily. The company’s focus on both customer experience and affordability allowed it to rapidly expand and meet the market’s demand for better transportation options. Ola’s adaptation to local needs, such as offering auto-rickshaws and budget-friendly rides, also helped it secure PMF.
4. Attract Funding to Scale Rapidly
Raising capital is essential for a unicorn’s rapid scaling. Investors, particularly venture capitalists (VCs), are crucial for financing growth and expansion. However, attracting investment requires having a strong business model, a clear path to profitability, and a market with significant potential.
Example: Zomato Zomato, one of India’s top food delivery and restaurant discovery platforms, was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. The company initially started as a restaurant listing service but pivoted into food delivery. Zomato raised multiple rounds of funding from investors like Sequoia Capital and Info Edge, which allowed it to expand its product offerings, enter new cities, and invest in technology. The company went public in 2021, achieving unicorn status long before that, thanks to its ability to scale rapidly and tap into the huge demand for food delivery in India’s fast-paced urban lifestyle.
5. Leverage Technology to Scale
Technology is the backbone of many successful unicorns, allowing them to scale quickly, optimize operations, and enhance customer experiences. In India, technology enables businesses to reach millions of users at a fraction of the traditional costs. From artificial intelligence (AI) and data analytics to machine learning, businesses that leverage technology gain an edge over competitors.
Example: Freshworks Freshworks, founded by Girish Mathrubootham and Shan Krishnasamy in 2010, is an Indian unicorn that provides cloud-based customer engagement software. The company leveraged AI and machine learning to offer automated solutions, helping businesses of all sizes provide better customer support. By focusing on making the product simple and affordable, Freshworks quickly gained traction in both India and international markets. Its use of technology to build scalable, user-friendly products played a key role in its success.
6. Maintain a Customer-Centric Approach
A customer-first mindset is vital for building a sustainable business that can scale. Successful unicorns focus on customer feedback, provide exceptional service, and consistently deliver value. Satisfied customers are more likely to spread the word, helping to build a loyal user base and increase brand awareness.
Example: PhonePe PhonePe, the digital payments platform, was founded by Sameer Nigam, Rahul Chari, and Burzin Engineer in 2015. The company capitalized on the growing adoption of smartphones and the Indian government’s push for digital payments. PhonePe made its platform simple to use, with seamless payment integration and cashback offers, attracting millions of users. By focusing on building trust, ensuring user security, and responding to customer needs, PhonePe was able to rapidly grow its user base and cross the $1 billion valuation mark.
7. Scale Quickly and Adapt to Market Dynamics
Speed is critical when scaling a business to unicorn status. Once you’ve achieved product-market fit, it’s essential to quickly expand your operations, user base, and market reach. In India, the market opportunity is vast, but the competition is also fierce. Unicorns are successful because they can adapt to rapidly changing market conditions and stay ahead of competitors.
Example: Razorpay Razorpay, a fintech startup that provides payment gateway solutions, was founded by Harshil Mathur and Shashank Kumar in 2014. The company was able to scale quickly by offering an easy-to-integrate payment platform for businesses of all sizes. Razorpay focused on customer acquisition and built strong partnerships with large companies, which helped it grow rapidly. Its adaptability to new market trends, such as the rise of UPI payments, and its ability to innovate with new features helped it secure unicorn status in a competitive industry.
Conclusion
Building a unicorn company in India is a challenging yet rewarding journey. By identifying a high-impact problem, building a great team, achieving product-market fit, attracting investment, leveraging technology, focusing on customer experience, and scaling quickly, entrepreneurs can turn their startups into billion-dollar companies. Examples like BYJU’S, Swiggy, Ola, Zomato, and Razorpay show that success lies in combining innovation with execution, all while staying agile in a rapidly changing market. With the right strategy and determination, your startup could be the next big unicorn in India.
