India's startup ecosystem has produced 119 unicorns, ranking third globally, but the focus should shift from merely raising funds to achieving sustainable and transparent growth.

Case studies of Byju’s and BluSmart illustrate how misleading narratives can conceal poor financial practices and aggressive sales tactics, while companies like Boat and OfBusiness exemplify sustainable growth through transparency and gradual scaling.

The rise in funding has led to inflated valuations, with investor caution evident as only one new unicorn emerged in the first quarter of 2025, and several startups faced significant markdowns.

To improve startup viability, founders and investors should focus on two key questions: Are unit economics improving? Is there transparency regarding costs and margins?

Regulatory oversight should ensure transparency in private market disclosures, especially for startups planning public listings, to foster a healthier investment environment.

Fewer than 20% of Indian startups are currently profitable, and profitability often follows Initial Public Offers (IPOs) rather than preceding them, revealing a concerning trend in financial health.

Bricolage, or the concept of doing more with less, has been misappropriated in the startup culture, leading to distorted forms like speculative and puffery bricolage that mask true value.

The article advocates for accountability and alignment among stakeholders, recommending structural reforms in due diligence processes and a focus on sustainability metrics rather than just valuations.

The author emphasizes that India needs sustainable 'camels'—businesses that scale responsibly and transparently—rather than just chasing unicorns, to create lasting value in the startup ecosystem.

High-profile startups, such as Byju’s and Gensol, are under scrutiny for allegedly inflating metrics and lacking transparency, raising questions about their business models.