(The Weekend Insight) - Silent Unicorns: The Billion-Dollar Startups You’ve Never Heard Of

In this deep-dive, we will explore the rise of Silent Unicorns — highly successful, profitable startups that operate under the radar, achieving sustainable growth without media hype or aggressive fundraising. Unlike traditional unicorns, which often chase billion-dollar valuations fueled by venture capital, Silent Unicorns prioritize operational efficiency, profitability, and long-term stability. Through real-world case studies, we will uncover the business strategies that allow these startups to thrive without external pressures.

What Are "Silent Unicorns"?

"Silent Unicorns" are profitable, high-growth startups that have achieved significant success without attracting widespread media attention or public recognition. Unlike traditional unicorns—startups valued at over $1 billion—these companies prioritize sustainable growth, profitability, and operational efficiency over flashy fundraising rounds or aggressive marketing. In India, several such startups operate under the radar, focusing on niche markets or leveraging innovative business models to thrive without the need for constant spotlight.

For example, companies like Zoho Corporation and EaseMyTrip have built robust businesses with minimal media fanfare. Zoho, a SaaS giant, has remained privately held and profitable for years, while EaseMyTrip, an online travel platform, went public in 2021 with little prior hype. These startups exemplify the "Silent Unicorn" ethos.

Why Do Some Startups Avoid the Limelight?

Startups may avoid the limelight for several reasons:

Focus on Core Operations: Excessive media attention can distract from building a sustainable business.

Competitive Advantage: Staying under the radar helps avoid attracting competitors or copycats.

Cultural Philosophy: Some founders prioritize humility and long-term growth over short-term fame.

Focusing on customers, not investors: Many silent unicorns build products that cater to real business needs rather than just attracting VC funding.

Avoiding market distractions: Excessive publicity often brings unrealistic expectations from investors, customers, and regulators.

The Role of Profitability Over Valuation

In the Indian startup ecosystem, profitability is increasingly being recognized as a more sustainable metric than valuation. While many startups chase high valuations through fundraising, "Silent Unicorns" prioritize generating consistent revenue (with sustainable unit economics) and maintaining healthy profit margins. This approach ensures long-term survival and reduces dependency on external funding.

For example, Nazara Technologies, a gaming and sports media platform, went public in 2021 with a strong focus on profitability rather than inflated valuations. Its IPO was oversubscribed by over 175 times, reflecting investor confidence in its sustainable business model.

According to Innoven Capital’s Startup Outlook Report 2024, a survey covering over 100 founders across sectors, 62% of founders have a higher bias on profitability v/s growth, which is the highest in all the years. The same survey revealed that 41% of startup founders reported being EBITDA profitable, up from 30% a year earlier.

The Indian Startup Ecosystem: Noise vs. Substance

The Funding-Driven Growth Hype

The Indian startup ecosystem has often been characterized by a funding-driven growth model, where startups prioritize raising large amounts of capital to achieve rapid scale. This approach has led to the rise of numerous unicorns, but it has also created a culture of valuation inflation and unsustainable growth. According to a 2023 report by PwC India, Indian startups raised over $24 billion in funding in 2022, with a significant portion going toward marketing and customer acquisition.

However, this funding frenzy has its pitfalls. Many startups, especially in sectors like edtech and e-commerce, have struggled to convert their growth into profitability. For instance, Byju's, once India's most valuable edtech startup, faced severe criticism for its aggressive spending and lack of profitability despite raising billions in funding.

Startups That Prioritize Sustainable Profits Over VC Hype

Several startups are consciously choosing sustainable profitability over-aggressive expansion fueled by venture capital (VC) funding. Here are some Indian companies exemplifying this philosophy:

Zerodha: It has become India's largest stock brokerage firm by active client base. The company has achieved this milestone without any external funding, maintaining full control over its operations and focus on customer-centric innovations. This strategy fostered a culture of financial discipline and sustainable growth.

Freshworks: While the company eventually accepted external funding, its initial years were marked by bootstrapping, which instilled a strong focus on unit economics and customer satisfaction. This foundation of financial prudence and operational efficiency has been pivotal in its journey.

Stanza Living: It provides fully managed accommodations for students and professionals. The company has adopted an asset-light business model, engaging in long-term lease agreements rather than heavy capital expenditure on property acquisition. This strategy has enabled Stanza Living to scale sustainably, focusing on service quality and operational excellence to drive profitability.

The Downside of Too Much Media Attention

While media attention can help startups gain visibility and attract customers, excessive coverage can have unintended consequences. High-profile startups often face increased scrutiny from regulators, competitors, and the public, which can lead to operational challenges.

For instance:

Byju's: The edtech giant faced intense media scrutiny over its financial practices, leading to reputational damage and regulatory investigations.

Paytm: After its highly publicized IPO in 2021, Paytm faced criticism for its valuation and business model, which impacted its stock performance.

Moreover, media hype can create unrealistic expectations, forcing startups to prioritize short-term growth over long-term sustainability. This can lead to burnout and a lack of focus on core business objectives.

Identifying Silent Unicorns: Key Characteristics

Bootstrapped or Minimally Funded Yet Highly Profitable

These startups have achieved profitability with little to no external funding, relying on organic growth and efficient operations.

Wingify: It is a Delhi-based startup that helps businesses by providing Conversion rate optimization (CRO) software. It is also a fully bootstrapped startup.

Instamojo: A Bengaluru-based SaaS-based suite solutions provider, that offers services such as website building, payment processing, payment gateway, and transaction monitoring. It is also one successful bootstrapped startup in India.

High Revenue Growth Without Relying on Heavy Marketing

These startups have achieved significant revenue growth through word-of-mouth, customer retention, and efficient business models rather than aggressive marketing.

Chargebee: It provides subscription management and recurring billing solutions for businesses. The company has grown its revenue significantly by focusing on customer satisfaction and retention. Chargebee achieved profitability in 2020 and has expanded globally without heavy marketing spends.

BrowserStack: It is a cloud-based platform that allows developers to test their websites and mobile applications across various browsers, operating systems, and devices. The company has grown significantly by focusing on product quality and customer satisfaction rather than aggressive marketing.

Industry-Specific Dominance Without Mass Consumer Awareness

These startups dominate their respective industries but remain relatively unknown to the general public due to their niche focus.

Nazara Technologies: It is a leading player in India's gaming industry, with a focus on mobile gaming, esports, and gamified learning. Despite its success, it remains under the radar in mainstream media. Nazara reported a net profit of ₹61.4 crore in FY2023, highlighting its dominance in the gaming sector.

Delhivery: It is a leading logistics and supply chain services company in India. While it plays a crucial role in enabling e-commerce and retail businesses across the country, it maintains a low profile among consumers.

Focus on B2B or Niche Markets

These startups cater to specific business-to-business (B2B) or niche markets, allowing them to grow sustainably without mass consumer appeal.

ProfitBooks: It provides accounting and inventory management software tailored for small businesses and freelancers. The company has grown by addressing the specific needs of its niche market. The company has been profitable since its early years and continues to grow without external funding.

Dukaan: It enables small businesses to set up online stores quickly and affordably. The company focuses on underserved SMEs, ensuring steady growth and profitability. Dukaan is valued at $70 million while maintaining profitability.

Case Studies of Silent Unicorns

Zoho – The Bootstrapped SaaS Giant Competing with Salesforce

Overview: Zoho Corporation offers a comprehensive suite of online productivity tools and SaaS applications, including CRM, project management, and accounting software.

Target Audience and Revenue: Zoho primarily serves small to medium-sized businesses (SMBs) seeking affordable and integrated software solutions. As of December 2022, its valuation stood at $5.9 billion.

Tally Solutions – The Quiet King of Accounting Software in India

Overview: Tally Solutions provides enterprise resource planning (ERP) software, with a strong focus on accounting and inventory management for businesses.

Target Audience and Revenue: Tally's primary users are small and medium-sized enterprises (SMEs) in India requiring reliable accounting solutions. As of 2024, its annual revenue stood at ₹672 crore.

Druva – A Global SaaS Leader in Data Protection

Overview: Druva offers cloud-based data protection and management solutions, including backup, disaster recovery, and archival services for enterprises.

Target Audience and Revenue: Druva caters to large enterprises and organizations seeking robust data protection across various cloud environments. Having raised $475 million across 10 rounds, the company was valued at $2 billion in 2021.

Quick Heal Technologies – India's Cybersecurity Pioneer

Overview: It is a leading Indian cybersecurity firm specializing in antivirus software, internet security, and enterprise protection solutions.

Target Audience & Revenue: Quick Heal serves individual consumers, SMEs, and government institutions with cybersecurity solutions. Its annual revenue for FY 2024 stood at ₹313 crore.

Wingify – The A/B Testing Powerhouse (VWO)

Overview: Wingify is the creator of Visual Website Optimizer (VWO), a leading A/B testing and conversion rate optimization platform that enables businesses to enhance their website performance.

Target Audience and Revenue: Wingify serves digital marketers, product managers, and UX designers aiming to improve user engagement and conversion rates. As of 2024, its annual revenue was ₹302 crore.

Icertis – Contract Management Software Powering Fortune 500s

Overview: Icertis provides enterprise contract management software, leveraging artificial intelligence to help organizations manage the entire contract lifecycle efficiently.

Target Audience and Revenue: Icertis targets large enterprises, including numerous Fortune 500 companies, across various industries that require streamlined contract management solutions. Having raised $447 million across 11 rounds, its valuation stood at $5 billion in 2022.

Postman – The Developer Tool That Became a Global Standard

Overview: Postman offers a collaborative platform for API development, enabling developers to design, test, and document APIs efficiently.

Target Audience and Revenue: Postman's primary users are software developers and engineering teams involved in API development and testing. Having raised $434 million across 6 rounds, its valuation was $5.6 billion in 2021.

Gupshup – The Silent Champion of Conversational Messaging

Overview: Gupshup provides a messaging platform that enables businesses to build conversational experiences across various messaging channels, including SMS, WhatsApp, and social media.

Target Audience and Revenue: Gupshup serves enterprises and developers looking to engage customers through conversational messaging solutions. Having raised $484 million across 8 rounds, the company was valued at $500 million in 2024.

BrowserStack – Testing the Internet Without Making a Noise

Overview: BrowserStack offers a cloud-based testing platform that allows developers to test their websites and mobile applications across a wide range of browsers and devices.

Target Audience and Revenue: BrowserStack's primary users are developers and quality assurance teams seeking efficient cross-browser and cross-device testing solutions. Having raised $253 million across 4 funding rounds, the company was valued at $4 billion in 2021. In 2024, its annual revenue reached ₹682 crore.

The Business Strategies Behind Their Success

How They Built Sustainable Revenue Models

These companies have focused on creating revenue models that ensure long-term sustainability rather than short-term gains.

Zoho Corporation

Zoho has built a diversified product portfolio with over 50 applications, including CRM, accounting, and productivity tools. This diversification reduces dependency on a single revenue stream and ensures steady income.

Zoho reinvests a significant portion of its profits into R&D, ensuring continuous innovation and customer satisfaction.

Tally Solutions

Tally, a leading accounting software provider, has maintained a subscription-based revenue model that ensures recurring income. The company focuses on serving SMEs, which form a stable and growing customer base.

Tally has consistently grown its revenue by offering affordable and user-friendly solutions tailored to the needs of small businesses.

BrowserStack

BrowserStack operates on a subscription-based model, offering tiered pricing plans to cater to businesses of all sizes. This approach ensures predictable revenue and scalability.

The company’s focus on delivering a high-quality product has resulted in strong customer retention and organic growth.

The Role of Customer Retention vs. Hypergrowth

These companies prioritize customer retention and satisfaction over aggressive hyper-growth strategies.

Zoho Corporation

Zoho focuses on building long-term relationships with customers by offering affordable, high-quality products and exceptional customer support. It has over 100 million users around the world.

Postman

Postman, an API development platform, has built a loyal user base by offering a free tier with robust features, encouraging users to upgrade to paid plans as their needs grow. 500,000 companies use Postman, including 98% of the Fortune 500 use the Postman API Platform.

Druva

Druva, a cloud data protection and management company, emphasizes customer success through personalized support and continuous product innovation. Druva has over 6,000 customers, including 65 of the Fortune 500.

Smart Scaling: Expanding Without Overstretching

These companies have scaled their operations thoughtfully, ensuring they don’t overextend their resources.

Moglix

Moglix, an industrial B2B e-commerce platform, has expanded by focusing on the procurement needs of small and medium-sized enterprises (SMEs) and large manufacturers. By creating a digital supply chain network, Moglix connects SMEs with suppliers, streamlining the procurement process and ensuring efficient resource utilization.

Udaan

Udaan, a B2B e-commerce platform, has achieved rapid growth by connecting manufacturers and wholesalers with retailers across India. By offering services such as credit financing and logistics support, Udaan facilitates seamless trade between businesses. Its strategic focus on addressing the needs of small and medium enterprises has enabled it to scale efficiently within two years of its inception.

Razorpay

Razorpay, a fintech company specializing in payment solutions, has achieved growth by diversifying its product offerings beyond payment gateways to include services like lending, payroll management, and neo-banking. This comprehensive suite of financial tools has attracted a wide range of businesses, from startups to large enterprises, enabling Razorpay to scale its operations efficiently while maintaining a strong focus on unit economics.

The Minimalist Marketing Approach: Word-of-Mouth & Inbound Strategies

These companies rely on organic growth and customer-driven marketing rather than heavy advertising.

PhysicsWallah

PhysicsWallah, an edtech platform, has relied on delivering high-quality educational content to attract students organically. By focusing on affordable and accessible learning resources, the platform has built a loyal community of users who actively promote its offerings through word-of-mouth, minimizing the need for traditional advertising.

CRED

CRED, a platform that rewards users for paying their credit card bills, has primarily relied on word-of-mouth and community building to expand its user base. By offering exclusive rewards and creating a sense of exclusivity, CRED has encouraged its members to refer friends and family, fostering organic growth without heavy reliance on traditional advertising.

BharatPe

BharatPe, a fintech company providing payment solutions to small merchants, has focused on building trust within the merchant community through direct engagement and word-of-mouth referrals. By offering zero-cost payment acceptance and quick settlements, BharatPe has attracted over 7 million merchants across 140 cities, achieving rapid growth with minimal advertising expenditure.

Why They Don’t Seek Media Attention

Many successful startups choose to operate under the radar, deliberately avoiding media attention. This strategic decision is influenced by several factors:

Avoiding Unnecessary Hype & Venture Capital Pressure

Excessive media exposure can attract venture capitalists (VCs) who often push for rapid scaling and quick returns. This pressure can lead startups to prioritize short-term growth over sustainable business practices. For instance, the edtech company Byju's experienced significant challenges after aggressive expansion and heavy marketing investments, influenced by substantial VC funding. The company's valuation plummeted from $22 billion in 2022 to effectively zero by 2024, highlighting the risks associated with yielding to external pressures for rapid growth.

The Founder Mindset: Building for Value, Not Valuation

Some founders prioritize creating intrinsic value over achieving high valuations. This mindset focuses on long-term sustainability rather than short-term financial metrics. For example, Zerodha, a prominent Indian stock brokerage firm, has remained bootstrapped since its inception in 2010. By not seeking external funding, Zerodha has maintained full control over its operations, emphasizing customer-centric innovations and financial discipline. This approach has led to consistent profitability and growth without the influence of external investors.

Staying Private vs. Going Public: The IPO Dilemma

The decision to remain private or pursue an Initial Public Offering (IPO) involves weighing the benefits of public capital against the challenges of regulatory scrutiny and market pressures. Many startups opt to stay private to retain control and avoid the demands of public markets. According to a 2024 report by Foley & Lardner LLP, successful startups with over $100 million in revenue, growing at more than 30% annually with 40% gross margins, often have ample access to private capital. This allows them to avoid the pressures and regulatory complexities associated with going public.

In summary, by avoiding media attention, startups can focus on sustainable growth, maintain operational control, and make strategic decisions aligned with their long-term vision without external pressures.

Lessons for Entrepreneurs

How to Build a Profitable Startup Without External Funding

Focus on a lean business model, reinvest profits, and prioritize customer retention over rapid expansion. Bootstrapped successes like Zerodha and Zoho prove that sustainable growth is possible without VC funding.

When to Scale & When to Stay Niche

Scaling should be demand-driven, not investor-driven. Companies like Wingify (VWO) dominate their niche instead of chasing mass-market expansion.

The Power of Long-Term Thinking Over Short-Term Growth

Avoid the hype cycle; prioritize profitability and product strength. Tally Solutions, for example, focused on steady growth rather than aggressive scaling.

Customer-Centric Innovation Over Investor Expectations

Companies like Postman scaled organically by solving real problems for developers rather than following VC-fueled hypergrowth models.

Building a Strong Culture & Ownership Mentality

Startups like Zoho emphasize in-house talent development and long-term employee retention over external hiring sprees, ensuring stability and innovation.

Financial Discipline & Self-Sufficiency

Sustainable startups like Gupshup manage cash flow efficiently, avoiding unnecessary burn on ads or rapid expansion, ensuring steady profitability.

Conclusion

The trajectory of India's "Silent Unicorns"—startups that achieve significant valuations and profitability while maintaining a low public profile—signals a transformative shift in the country's entrepreneurial landscape. As of 2023, approximately 80-85% of Indian startups are bootstrapped, relying on internal resources rather than external funding. This trend is poised to continue, with more entrepreneurs recognizing the benefits of sustainable growth over rapid, investment-driven expansion.

The success of companies like Zoho and Zerodha exemplifies the viability of this approach. Their focus on customer-centric innovation, financial discipline, and long-term value creation has not only led to substantial profitability but also fostered resilience against market fluctuations. These examples demonstrate that startups can achieve unicorn status without succumbing to the pressures and potential pitfalls associated with venture capital.

For investors, this paradigm shift offers critical insights. The traditional emphasis on hypergrowth and quick exits is being reevaluated in favor of business models that prioritize profitability and sustainability. Investors are encouraged to identify and support ventures that adopt prudent financial practices and have a clear path to profitability, ensuring more stable and long-term returns.

Founders, on the other hand, can draw valuable lessons from these Silent Unicorns. Embracing a bootstrapped model necessitates a focus on core competencies, efficient resource utilization, and a deep understanding of market needs. By retaining control over their ventures, entrepreneurs can align their business strategies closely with their vision and values, leading to more authentic and sustainable growth trajectories.

In conclusion, the rise of Silent Unicorns in India underscores a maturing startup ecosystem that values substance over hype. As more startups adopt this model, we can anticipate a more resilient and diversified entrepreneurial landscape, where success is measured by enduring value and impact rather than fleeting valuations.