Dream11, 3 other startups lose unicorn status after govt ban on real-money games: Report

Four Indian real-money gaming (RMG) startups, including Dream11 and Games24x7, have lost their unicorn status following the government’s move to regulate the sector, the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025 said on Thursday.

The other companies that dropped off the unicorn list are Gameskraft, which has 30 million users, and Mobile Premier League (MPL), with 90 million users.

Unicorns are startups valued at $1 billion or more.

Valuations of non-unicorn gaming platforms such as Zupee and Winzo Games have also been hit by the new rules, it added.

Last month, Parliament passed legislation banning all forms of online money games while promoting eSports and social gaming. The law also prohibits advertisements for online money games and bars financial institutions from processing related transactions.

"These changes have hit the valuations of India's most prominent RMG companies," the report said, adding that these startups face limits on promotion which will slow down their growth, and tighten tax requirements.

Several firms have cut sponsorships, including of the Indian cricket team, and laid off staff following the government’s move.

Despite the decline in RMG valuations, India added a net six unicorns this year, taking the total to 73.

Eleven companies entered the list in 2025, including Ai.tech, Navi Technologies, Vivriti Capital, Veritas Finance, Rapido, Netradyne, Jumbotail, DarwinBox, Moneyview, Juspay and pet food brand Drools.

Bengaluru remains the country’s unicorn hub with 26 startups worth $70 billion in total, ahead of Delhi-NCR (12 startups, $36.3 billion) and Mumbai (11 startups, $22.8 billion).

Zepto co-founders Kaivalya Vohra and Aadit Palicha, both 22, are India’s youngest unicorn founders, the report said.

The report, which details out startups valued at over USD 200 million, said such high valued startups employ 3.74 lakh people and the unicorns alone contribute 2.06 lakh people to it.

The report said venture capital firm Peak XV Partners dominates India's startup landscape, leading with 68 bets valued at over USD 200 million including Turtlemint, Whatfix, Groww and PRISM (OYO).

Rajesh Saluja, managing director and chief executive of ASK Private Wealth, said that amid concerns over cash burn and revenue-focused growth, there is a “growing focus on profitability, capital efficiency and sustainable business models” among Indian startups.