Most Indian unicorns’ business strategies seek to target the vast mass market in India and its demographics that are weighted heavily in favor of the youth.
The Indian economy is in the very early stage of the growth cycle. Per capita of GDP in India in 2022 will be around $2022. By 2030, this number is projected to reach $3800, which is still much lower than any middle-income country.
Given the nature of the Indian market, the mass market, and low average income, the focus of Indian unicorns is based on sound business logic.
If we go by the way the initial round of IPOs has been valued, there are many questions that these businesses will require to answer when it comes to sustainability is concerned. These businesses hurry to raise valuations and then make a quick exit after making windfall profits. These are serious flaws in strategy when it comes to sustainability is concerned. There does not appear to be anything wrong with their business models. The problem lies in strategy, vision, and governance.
Indian unicorns are designed today for acquisition. Most of them will disappear from the market ten years from now. Mature Indian and foreign companies will be acquiring market share from these companies. Not all unicorns will succeed in making windfall profits via the acquisition route.
Indian unicorns require a serious re-look at their business strategies to get even close to sustainability.

Strategy expert

Business model expert

Related Posts:

Sudhirahluwalia, Inc