Valuation reset: Startups begin losing unicorn tag

MUMBAI: The unicorn tag is no longer easy to come by for India’s startups. Blame it on the AI boom triggering the flight of substantial foreign capital to the US or investors rejigging their approach in line with the current business landscape: the startup space is undergoing a valuation reset.Data sourced from Tracxn showed that at least 10 startups have been devalued since 2024, losing out on the unicorn status. A unicorn is a company valued at $1 billion and beyond.“Much of the world has changed since the Covid-era funding boom. The zero interest regime is gone and most of the foreign money is now parked in US treasuries for the high yield. Worldwide risk capital has been chasing AI and allied industries. Companies that are not AI native have fallen out of favour.