India’s unicorn start-ups have emerged as key drivers of innovation and digital transformation in the national economy. As of May 2024, with 111 unicorns, India stands as the third-largest hub globally. However, the sustainability of these ventures is under increasing scrutiny amid rising valuation corrections and financial distress. This study analyses the financial performance and stability of five prominent Indian unicorns—PolicyBazaar, Zomato, Paytm, Swiggy and Nykaa—over the period FY 2021 to FY 2025. The research evaluates their revenue growth, profitability, liquidity and bankruptcy risk through financial ratio analysis and Altman Z-score modelling. In contrast to earlier studies, this article applies one-way ANOVA and correlation analysis to statistically test two key hypotheses: (a) whether financial stability significantly differs among unicorns, and (b) whether market capitalisation influences Altman Z-scores. The findings reveal substantial differences in financial health across firms and confirm a strong positive relationship between market capitalisation and financial stability. These insights provide a critical evidence base for investors, policymakers and entrepreneurs focused on building resilient and financially sound start-up models.
Prajapat et al. (Wed,) studied this question.