From billion-dollar valuations to billion lives impacted: Why India needs social unicorns

When InMobi became India’s first unicorn startup in 2011, it sparked a wave of ambition. According to Tracxn data, India is home to 121 unicorns, as of late-2025, collectively valued at over $366 billion. These companies have changed how we shop, commute, and pay. They have also put India on the global startup map, making us the world’s third-largest startup ecosystem.

But here’s the big question. Is a billion-dollar valuation the ultimate measure of entrepreneurial success? Should the unicorn race be the defining narrative when India continues to grapple with challenges in healthcare, rural livelihoods, climate resilience, and women’s economic empowerment?

If we are serious about Viksit Bharat 2047, we must broaden our lens. The next chapter of India’s startup story must be defined not only by unicorns, but by ‘social unicorns'.

What is a social unicorn?

A social unicorn is not measured only in dollars; it is measured in lives touched, problems solved, and wealth shared inclusively. These are enterprises that may achieve billion-dollar valuations, but, more importantly, they deliver transformational impact at scale.

Globally, the rise of impact driven enterprises is clear. By 2022, more than 180 impact unicorns had emerged, collectively valued at over 443 billion dollars, according to HolonIQ. These are private companies worth more than one billion dollars, delivering measurable outcomes in cleantech, health, and inclusion. Notable examples include d.light, which provides affordable solar solutions to millions across Africa and Asia, and Zipline, whose autonomous drone network has transformed access to life saving medical supplies across several continents.

India has its own pioneers. Ergos is transforming agri-storage and finance for small farmers. Ziqitza provides affordable ambulance services in underserved regions. Barefoot College has trained rural women as solar engineers, electrifying entire villages. These may not yet be financial unicorns, but their social return on investment is immense.

Why social unicorns matter now

Inclusive wealth creation

Traditional unicorns often enrich shareholders without a broad impact. Social unicorns, by design, create jobs, improve livelihoods, and provide essential services. A clean energy startup bringing solar to rural homes doesn’t just sell a product; it lifts incomes, reduces emissions, and improves health.

Unlocking untapped markets

The Department for Promotion of Industry and Internal Trade has recognised 1,97,692 entities as startups under the Startup India initiative (as of 31 October 2025).

Nearly half of India’s startups now originate from Tier II and III cities, reflecting the growing democratisation of entrepreneurship and the strength of India’s inclusive innovation landscape, according to the Ministry of Science and Technology.

These regions are rich in ideas but often lack visibility and capital. By elevating social unicorns, we validate this talent and support the innovation emerging from smaller towns and rural India.

Resilience rooted in purpose

Social entrepreneurs are deeply mission-driven. Their community ties make them less vulnerable to market fads, giving them resilience through downturns.

Aligning with global capital

ESG-aligned assets exceeded $30 trillion in 2022 and are projected to cross $40 trillion by 2030, representing over 25% of global assets under management, according to Bloomberg Intelligence. India can channel this capital if it showcases investable social unicorns.

Cleantech: A defining frontier

Among all domains, cleantech and climatetech deserve special attention. The ADB’s Asia-Pacific Climate Report 2024 warns that India could lose 24.7% of its GDP by 2070 under a high-emissions scenario. This isn’t an abstract risk; it’s an economic time bomb

At the same time, opportunity abounds. The International Energy Agency estimates that by 2030, global clean energy manufacturing could be a $650 billion market, creating millions of jobs. 

Startups are already seizing this space:

• Battery recyclers are building circular economies for EVs.
• Agri-climate innovators using AI to reduce water stress.
• Waste-to-value ventures are turning urban waste into energy or building material.

These may seem niche today, just as IT outsourcing once did. Tomorrow, they could define India’s global leadership.

Other arenas of social unicorns

• Healthcare: Startups delivering low-cost diagnostics, telemedicine, and rural health services.
• Women-led enterprises: India’s next growth story could come from the 50 million women entrepreneurs driving Tier II and III economies by 2047.
• Creative economy: Creative-tech startups can preserve India’s cultural heritage while unlocking export revenues in design, gaming, and storytelling.

Each of these has the potential to be a social unicorn in its own right.

How the ecosystem must evolve

• Policy recognition: Provide tax incentives, blended finance, and procurement support for impact-first enterprises.
• Metrics beyond valuation: Count livelihoods supported, emissions reduced, and gender parity alongside traditional financial KPIs.
• Celebrating impact: Media, rankings, and awards should elevate social unicorns as aspirational role models, just as ‘unicorn status’ became fashionable a decade ago.

Vision for 2047

Imagine India at 100 years of independence:

• 50 million women entrepreneurs powering growth beyond metros.
• Every household with clean energy and affordable healthcare.
• Circular economies minimising waste, maximising efficiency.
• Creative-tech exports making India a cultural as well as economic powerhouse.

This is not idealism; it is practical ambition. With even a fraction of current startup capital redirected toward impact, this vision is achievable.

As leaders, mentors, investors, and policymakers, we must ask ourselves: Are we celebrating the right heroes? Unicorn valuations deserve headlines. But so does a startup bringing clean water to 10 million families, or enabling smallholder farmers to double their incomes.

Unicorns excite the market. Social unicorns inspire the nation. For Viksit Bharat 2047, we will need both. But if we must choose, our weight should be behind those who carry society forward.

The author is Chairman, IIM Calcultta Innovation Park.