UK passes India in unicorn count as AI startups surge

Key Takeaways

• UK climbed to 70 unicorns (up 9), while India dropped to 61 (down 3) in global unicorn rankings
• AI unicorns grew by 87 in a single year, now representing 36% of total unicorn value worldwide
• Indian founders have co-founded 217 unicorns globally worth $599 billion, with 156 based outside India

India has fallen to fourth place in global unicorn rankings, overtaken by the United Kingdom, according to the Hurun Global Unicorn Index 2026 released Thursday. The UK now counts 70 unicorns, up nine from last year, while India dropped to 61, down three. The shift reflects two forces: Indian unicorns exiting via IPO and the explosive growth of AI startups concentrated in Western markets.

The United States remains the dominant leader with 806 unicorns. China holds second place with 381. India added 16 new unicorns this year, a slower pace than the US (156) and China (80), though several high-profile companies graduated from unicorn status by going public. Lenskart, Groww, and Ather Energy all completed IPOs during the period.

Why did India lose ground in the unicorn rankings?

India's drop is partly a success story. When unicorns go public, they exit the index because Hurun only tracks private companies valued at $1 billion or more. The IPO exits of Lenskart, Groww, and Ather Energy removed three names from the list. But the underlying issue is pace: India minted only 16 new unicorns compared to 156 in the US and 80 in China.

Funding conditions remain tighter than the 2021 boom years. Venture capital in India has shifted toward profitability over growth, making billion-dollar valuations harder to achieve for young companies. Zerodha leads India's unicorn roster at $9 billion, followed by quick-commerce player Zepto at $7 billion and payments firm Razorpay at $6 billion. Bengaluru remains the country's unicorn hub with 25 companies; Mumbai follows with 13.

AI now accounts for 36% of total unicorn value

The real story in this year's index is artificial intelligence. AI unicorns grew by 87 in a single year, reaching 215 companies worldwide. That sector now accounts for 36% of total unicorn value, the highest share of any industry. OpenAI, Anthropic, and defense tech firm Anduril are driving outsized valuations as AI embeds itself across enterprise and consumer platforms.

Cybersecurity is riding the same wave. Amid escalating digital threats, 75 cybersecurity unicorns represent 2% of total unicorn value. The US leads, with active clusters in Israel and Canada. Threat detection, identity protection, and cloud security are the fastest-growing sub-sectors.

For founders tracking AI infrastructure tools, Perplexity, the AI search engine co-founded by an Indian entrepreneur, made the unicorn list alongside coding startup Anysphere. Both are US-based, illustrating where the capital is flowing.

Indian founders punch above their weight abroad

Here's a number that deserves attention: Indian entrepreneurs have co-founded 217 unicorns worldwide, valued at a combined $599 billion. Of those, 156 are based outside India, with the vast majority in the US. Four are in the UK, two in Singapore, and one in Germany.

This diaspora effect means India's influence on the global startup ecosystem is larger than its domestic unicorn count suggests. Indian founders are building some of the most valuable AI companies in the world. They just happen to be doing it in San Francisco.

What changed in the UK?

The UK's nine new unicorns reflect heavy investment in AI and fintech. Government initiatives to position London as an AI hub have coincided with private capital flooding into the sector post-ChatGPT. Companies like Wayve (autonomous vehicles) and Synthesia (AI video generation) have reached billion-dollar valuations in recent rounds.

Brexit fears about London's decline as a tech capital have not materialized in the unicorn data. If anything, the concentration of AI talent and capital in London has intensified.

Frequently Asked Questions

How many unicorns does India have in 2026?

India has 61 unicorns according to the Hurun Global Unicorn Index 2026, down from 64 the previous year. The decrease is partly due to unicorns exiting via IPO.

Why did the UK overtake India in unicorn rankings?

The UK added 9 new unicorns (reaching 70 total) while India saw a net decrease of 3. AI-focused startups drove much of the UK's growth, while several Indian unicorns went public and exited the private company index.

Which country has the most unicorns in 2026?

The United States leads with 806 unicorns, followed by China with 381. The UK ranks third with 70, and India fourth with 61.

What sector has the most unicorns globally?

Artificial intelligence leads with 215 unicorns, representing 36% of total unicorn value. The sector added 87 new unicorns in a single year.

Which Indian city has the most unicorns?

Bengaluru leads with 25 unicorns, followed by Mumbai with 13. Zerodha, Zepto, and Razorpay are among India's most valuable unicorns.

Source: Tech-Economic Times / ET