FY2024 - 52% of Indian unicorns (100 in number) are profitable.
Over the past few years, there's been a quiet move from "burn cash to grow" to "grow while making money."
The 2023 funding winter seems to have accelerated this trend significantly.
Here's what stands out in the current numbers:
Between FY22 and FY24, profitable companies jumped from 29% to 52%. That means roughly one in four internet companies flipped from losses to profits in just two years.
The financial turnaround is real.
These companies collectively lost ₹1.5 billion in FY19, but delivered ₹0.5 billion in profits by FY24.
That's a ₹2 billion swing in actual performance.
Companies with solid margins are consolidating their positions. Others have fixed their unit economics through sharper operations.
Three forces seem to be driving this change:
- Newer startups are building with profitability baked in from day one.
- Established players are using AI and automation to squeeze more revenue from existing operations.
- The reality of IPO requirements is pushing companies toward financial discipline that wasn't there during easy venture money.
What does this mean for wealth creators?
This profitability wave separates businesses with sustainable models from those just cutting costs temporarily.
The companies solving the profitability puzzle are already seeing it reflected in their valuations and market positions.
The internet economy has matured faster than many expected.
The data shows this dramatic reversal from FY19 through today's FY24 reality.
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