NGE · Investment Letter · Issue 18 · June 2026

The India Unicorn
Portfolio.
Not the biggest names.
The best names.

India has 131 unicorns — the third-largest startup ecosystem on earth behind the United States and China. Most coverage focuses on the biggest names: Flipkart, Jio, Reliance Retail. This letter is different. It focuses on the six fundamentally strong, fundamentally honest companies where the investment case is clearest — built on real revenue, real profits, and the real India that is emerging beneath the headlines. Each one a window into a different dimension of the world's fastest-growing major economy.

Not investment advice. Not a recommendation to buy or sell. Research and long-horizon thinking only. Consult a qualified financial advisor before making any investment decision. Many of these companies are pre-IPO — access requires secondary markets or specific fund structures.

The India Moment

The funding winter ended.
What survived is worth owning.

The 2022–2023 funding winter was the most clarifying event in Indian startup history. When global venture capital tightened and Indian startup funding dropped by roughly 60%, the companies that had been growing through cash burn — spending more than they earned, funded by investor money, in pursuit of market share — were forced to demonstrate profitability or face extinction. Several did not survive. Many that did emerged fundamentally stronger.

What the winter revealed is the most important insight for any long-horizon investor approaching the Indian unicorn universe: India's best startups do not need to be the most hyped. They need to be the most fundamentally sound. Zerodha has been profitable since inception — never raised external capital, never needed to. Razorpay turned profitable after years of disciplined cost management. Zepto scaled ultra-fast delivery to unit economics that work. Neysa raised $600 million from Blackstone because India's AI infrastructure gap is genuinely urgent. Groww made wealth management accessible to 60 million Indians who had never invested before. Skyroot is building India's private rocket company at the moment the government opened the space sector to private enterprise.

These are not valuation stories. They are business stories. And business stories compound.

"India's best unicorns do not need to be the most hyped. They need to be the most fundamentally sound. The funding winter separated the two categories permanently."

131
Total Indian unicorns · 3rd largest ecosystem globally
$391B
Combined valuation · $118B+ raised
42
IPOs in 2025 · ecosystem maturing to public markets
NGE Selection Criteria

How we chose
these six and not others.

Real Revenue

Every company here generates genuine revenue — not GMV, not processed volume, not vanity metrics. Revenue that appears on a P&L and flows toward profit.

Clear Path to Profit

Either already profitable or demonstrably on the path. No "we will figure out monetisation at scale" — the monetisation model must already work.

$1Q Connection

Each company connects to a compounding force in the $1Q thesis — financial inclusion, AI infrastructure, space economy, consumer growth, or emerging market ascent.

Sector Leadership

Each company is #1 or #2 in its category. India is too competitive to invest in category followers — only leaders have pricing power and defensible moats.

Position One · Bengaluru
🏦 Fintech · No VC · Profitable Since Day One

Zerodha

~$8.2B valuation · Bootstrapped · Bengaluru · NSE member

Zerodha is the most remarkable company in Indian startup history — and the one that receives the least attention precisely because it never raised venture capital. Built by the Kamath brothers without a single rupee of external funding, Zerodha became India's largest stockbroker by active clients. It processes ₹10,000 crore+ in revenues. It is profitable. It has been profitable since inception. In a world where startup discourse is dominated by funding rounds and valuations, Zerodha is the company that quietly built the most important retail investing infrastructure in India while everyone was watching the funded competitors.

The $1Q connection is direct. Force 15 of the $1Q thesis is Financial Deepening — the process by which savings become productive capital through well-functioning financial markets. Zerodha has brought 13+ million active retail investors into Indian equities — most of them first-generation investors. That democratisation of investment access is not just a commercial opportunity. It is a structural contribution to India's capital market depth. When India's retail participation in equities grows from 5% of households to 15% — as it will over the next decade — Zerodha compounds with that growth automatically.

$8.2B
Valuation · bootstrapped
13M+
Active clients · largest Indian broker
Zero
External VC raised · profitable since day one
Key Catalysts
India's retail equity participation growing from 5% to 15% of households · SIP (systematic investment plan) culture expanding to tier-2 and tier-3 cities · IPO market revival — Zerodha benefits from every new listing · Zerodha Fund House — AMC business expanding managed assets · Kite platform AI-driven insights expanding engagement
Key Risk
Pre-IPO — no public listing yet, secondary market access only. SEBI regulatory changes affecting discount broker economics — any increase in transaction costs or margin requirements directly impacts Zerodha's business model. Market downturn reducing retail trading activity compresses revenue.
Position Two · Bengaluru
💳 Payments · ₹3,783Cr Revenue · 65% Growth

Razorpay

~$7.5B valuation · Bengaluru · IPO expected 2026–27

Razorpay is the payment infrastructure of India's startup economy. Founded in 2014 by Harshil Mathur and Shashank Kumar, it powers digital payments for most of India's online businesses — from the smallest e-commerce entrepreneur to major enterprise customers. In FY25, consolidated revenue surged 65% to ₹3,783 crore, with gross profit crossing ₹1,200 crore. The company has turned profitable after years of disciplined cost management and is now preparing for a public market debut.

The business model is expanding beyond pure payment aggregation — and that expansion is the most important investment thesis. RazorpayX for business banking. Payroll management. Corporate cards. Merchant lending. Offline POS via Ezetap acquisition. The UPI app Pop for consumers. Razorpay is executing the same playbook as Shopify — becoming the operating system for Indian business, one financial service layer at a time. Each new product deepens the relationship with existing merchants and increases revenue per customer without proportional customer acquisition cost.

₹3,783Cr
Revenue FY25 · +65% YoY
₹1,200Cr+
Gross profit FY25
$7.5B
Valuation · IPO expected 2026–27
Key Catalysts
IPO in 2026–27 creating public market access · RazorpayX business banking growing — millions of payslips processed monthly · Merchant lending expanding ARPU · India's formalisation of MSME sector driving payment infrastructure demand · Southeast Asia and Middle East international expansion
Key Risk
UPI's near-zero economics compressing margins in core payment aggregation — diversification into higher-margin products is essential but not yet dominant. Competition from Paytm, PhonePe, BharatPe in adjacent segments. IPO timing market risk if equity markets turn volatile.
Position Three · Mumbai
📦 Quick Commerce · Fastest Scaling · $5.9B Valuation

Zepto

~$5.9B valuation · Mumbai · Founded 2021 · IPO preparing

Zepto was founded in 2021 by two Stanford dropouts — Aadit Palicha and Kaivalya Vohra — who were 19 years old. Within three years it had become one of India's most valuable startups, delivering groceries in 10 minutes across India's major cities. The speed of growth is extraordinary by any standard. The question every serious investor must ask is whether the unit economics support the valuation — and increasingly, the answer is yes.

Quick commerce — 10-minute grocery delivery — initially appeared to be a business that could never be profitable. The cost of dark stores, dense rider networks, and fast fulfilment seemed structurally prohibitive. Zepto, Blinkit, and Swiggy Instamart have spent three years proving that the model can work — by expanding basket sizes, increasing average order values, adding private labels with better margins, and building advertising revenue from FMCG brands that pay for shelf placement in the dark store. The quick commerce category is winning the battle for India's urban grocery market faster than anyone predicted.

$5.9B
Valuation · June 2026
5yr
Company age · founded 2021
10min
Delivery promise · across major Indian cities
Key Catalysts
Category expansion beyond groceries — electronics, medicines, fashion · Private label products at higher margins · FMCG advertising revenue from brands paying for dark store placement · Tier-2 city expansion as infrastructure and consumer readiness grows · IPO in preparation — will create public market liquidity
Key Risk
Unit economics remain challenged in lower-density tier-2 cities where the quick commerce model has not yet proven itself. Three-way competition with Blinkit (Zomato) and Swiggy Instamart requiring continued investment. Consumer behaviour can shift — the 10-minute delivery premium may not sustain in a macroeconomic slowdown.
Position Four · Bengaluru
🤖 AI Infrastructure · $1.4B · Blackstone Backed

Neysa

~$1.4B valuation · Bengaluru · $600M Series B · Feb 2026

Neysa is India's most important AI infrastructure company — and the least known outside of technology circles. It provides GPU-as-a-Service, AI Platform-as-a-Service, and Inference-as-a-Service to Indian enterprises that need AI computing power but cannot afford or access the hyperscaler platforms at Indian market pricing. In February 2026, Blackstone led a $600 million Series B at a $1.4 billion valuation — one of the largest single funding rounds for any Indian technology startup.

The India AI infrastructure gap is structural and urgent. Every Indian enterprise that wants to run AI models — banks, insurance companies, e-commerce platforms, manufacturing companies — needs GPU computing. The international hyperscalers (AWS, Azure, Google) serve this need but at dollar pricing that most Indian companies cannot sustain. Neysa serves the same need at rupee pricing, with data stored in India (essential for regulated industries), and with support in Indian market languages and standards. As India's AI adoption accelerates — and it is accelerating faster than most global analysts recognise — Neysa's domestic GPU cloud is the foundation that Indian AI runs on.

$1.4B
Valuation · Feb 2026
$600M
Series B · led by Blackstone
GPU
Cloud · AI platform · inference as-a-service
Key Catalysts
India's AI enterprise adoption accelerating across banking, insurance, manufacturing · Data localisation requirements driving demand for India-based GPU cloud · Government AI initiatives requiring domestic compute infrastructure · International AI companies using Neysa for Indian market inference workloads · IPO potential as the largest domestic AI infrastructure company
Key Risk
GPU compute is commoditising globally — pricing pressure will intensify as supply increases. AWS, Azure, and Google are investing heavily in Indian data centre capacity at competitive pricing. Neysa must build platform stickiness beyond raw compute — the AI platform and marketplace ecosystem is the moat, not the GPU capacity alone.
Position Five · Bengaluru
📈 Wealth Management · 60M Users · India's Investing Revolution

Groww

~$7B valuation · Bengaluru · IPO preparing · Founded 2016

Groww has done for Indian investing what Zerodha started and took to the next level — it made mutual funds, stocks, ETFs, and fixed income accessible to the 60+ million Indians who had never invested before. Founded in 2016 with a deliberately simple, education-led approach, Groww's app-first model eliminated the complexity that kept most Indians away from capital markets. Today it is the most-used investment platform among first-generation investors in India — the young salaried professional in Jaipur, the gig worker in Hyderabad, the small business owner in Coimbatore investing their first SIP.

The India wealth management story is one of the most powerful structural tailwinds in the $1Q universe. India's household financial savings rate is high — but the allocation to equities is extraordinarily low compared to GDP and global peers. As that allocation rises — driven by platforms like Groww making it simple and accessible — the asset management industry grows proportionally. Groww earns a small percentage of assets under management across 60 million users. As those users' wealth compounds, Groww's revenue compounds with it. This is the most direct expression of the India wealth creation story available to an investor.

~$7B
Valuation
60M+
Users · first-generation investors
2016
Founded · app-first model
Key Catalysts
India household equity allocation rising from low base — structural decade-long tailwind · IPO market revival driving account openings · NPS and insurance products expanding revenue streams · Tier-2 and tier-3 city penetration still early — largest growth opportunity remaining · AI-powered portfolio recommendations increasing engagement and AUM per user
Key Risk
Market downturn reducing retail participation — revenue is partially correlated with equity market performance. Competition from Zerodha, Angel One, Upstox in discount broking. SEBI regulatory changes affecting distribution commissions could impact mutual fund revenue. IPO timing remains uncertain.
Position Six · Hyderabad
🚀 Space Tech · India's Private Rocket · $1.1B · May 2026

Skyroot Aerospace

~$1.1B valuation · Hyderabad · India's first space tech unicorn · May 2026

Skyroot Aerospace became India's first space technology unicorn in May 2026 — entering the unicorn club with a $60 million Series B at $1.1 billion valuation. It builds small satellite launch vehicles using 3D-printed rocket engines — a manufacturing approach that dramatically reduces cost and production time compared to traditional aerospace. Its Vikram rocket series is designed for the small satellite market that is growing fastest globally.

The India space story is the most underappreciated startup opportunity in the country. India's space economy is estimated at $8.4 billion today and projected to grow to $44 billion by 2033. The 2020 government reforms that opened the space sector to private companies for the first time created an entirely new industry from scratch. ISRO's global credibility — built over decades of frugal engineering — provides the technical validation that Indian private space companies can genuinely compete. Skyroot is building the Falcon 9 of Indian private space — not at SpaceX scale, but with the same fundamental insight: launch cost reduction unlocks satellite economy growth. India has nearly 400 space-tech startups. Skyroot is the only unicorn. It is the category leader at the exact right moment.

$1.1B
Valuation · May 2026 · first space unicorn
$44B
India space economy projected by 2033
400+
India space startups · Skyroot is the unicorn
Key Catalysts
Vikram-1 orbital launch — commercial credibility established · Small satellite market growing globally — 6,000+ satellites planned for launch 2026–2030 · Indian government satellite contracts · 3D-printed engine manufacturing scaling — dramatic cost reduction · ISRO commercial partnership potential · Post-IPO capital for next rocket generation
Key Risk
Space is unforgiving — a launch failure has severe reputational and financial consequences. ISRO has faced consecutive recent launch failures; the private sector is not immune. Long commercialisation timelines — space tech requires patience measured in years. SpaceX competition setting global price benchmarks that are extremely difficult to match at Indian scale. Revenue early-stage.
The Honest View
NGE Honest View — The India Unicorn Portfolio

Access is the primary challenge. Five of these six companies are pre-IPO. Zerodha has no IPO plans stated. Razorpay and Groww are preparing for IPOs in 2026–27. Zepto is also preparing. Neysa and Skyroot are earlier stage. Direct investment requires secondary market access, SEBI-compliant accredited investor status for private placements, or investment through India-focused venture or growth equity funds.

The ecosystem has genuinely matured. The 2022–23 funding winter removed the weakest companies and forced the survivors to build on fundamentals. What remains is healthier. Zerodha profitable from day one. Razorpay turned profitable. Zepto's unit economics improving. This is a different investment environment from the 2021 peak — more demanding, more selective, and more rewarding for those who choose carefully.

India's scale is the structural tailwind behind all six. 1.4 billion people. The fastest-growing major economy. A young demographic that is the first generation to grow up with smartphones and expect digital-first financial, commercial, and government services. This is not a 3-year thesis. It is a 15-year thesis. Each of these six companies is positioned at the intersection of Indian scale and a global technology shift.

The one we are most convicted about for the long horizon is Zerodha. Profitable since inception. Never raised external capital. Category leader. A business model that compounds automatically as Indian household wealth grows. Built by founders who understand that trust compounds faster than growth. In a world of hyped unicorns, Zerodha is the quiet giant that actually built something that works.

NGE Fundamental Assessment — India Unicorns
🟢
Zerodha — the standard. Profitable. Bootstrapped. Category leader. Trust as the moat. A company that built India's retail investing infrastructure while everyone else was burning VC money. When India's equity participation doubles — and it will — Zerodha doubles with it.
🟢
Razorpay — the Shopify of Indian business. ₹3,783 crore revenue growing 65%. Turning profitable. IPO in 2026–27. Every Indian business that processes digital payments, manages payroll, or needs business banking is a potential Razorpay customer. The TAM is every MSME in India.
🟢
Groww — the wealth management decade. 60 million first-generation investors. India's household equity allocation rising from a low base over fifteen years. Groww earns a fraction of every SIP, every stock trade, every mutual fund purchase. As Indian household wealth grows, Groww compounds automatically.
🟡
Zepto — the quick commerce bet. Unit economics improving. Category winning. But the path to sustainable profitability at scale in tier-2 cities remains unproven. Conviction requires watching one more year of unit economics data before full allocation.
🟡
Neysa — the AI infrastructure play. Right sector, right moment, right backers. But GPU compute commoditises. The moat must be built in the platform layer — AI services, data localisation, enterprise integration — not the compute itself. Watch the platform stickiness metrics.
🔵
Skyroot — the longest horizon. India's private space economy will be $44 billion by 2033. Skyroot is the category leader at the moment it matters most. For the investor with a 10-year horizon and genuine risk tolerance, this is the highest-upside position in this portfolio. The space economy is real. India's version is just beginning.

India has 131 unicorns. Most of them will not matter. Six of them represent something more important than valuations — they represent the infrastructure of a billion-person economy reinventing itself in real time. Zerodha, Razorpay, Zepto, Neysa, Groww, Skyroot — six windows into the real India that is emerging. Invest in the windows, not the headlines.

NGE · A Futuristic Investment Letter · Issue 18

Written from first principles. Not consensus. Not noise. Long-horizon thinking on capital, technology, and the forces shaping the next decade of wealth creation. Published when something is worth saying — not on a schedule.

— Pawan Bhatia · NextGen Economics · Bangalore, India · June 2026