The implementation of a new regulation governing online money games has shocked the Indian real-money gaming (RMG) industry, costing at least four well-known businesses their coveted unicorn status. According to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025, the shake-up has affected industry titans like online gaming platforms Games24x7, Gameskraft, and Mobile Premier League (MPL), as well as fantasy sports giant Dream11.
Dream11, Games24x7, MPL, and Gameskraft Impacted:
One of the biggest losses has been Dream11, which was once the face of India’s fantasy sports boom. Dream11 used to be the most well-known unicorn in this industry, with 260 million users. Another major contender with 120 million users, Games24x7, has also lost its unicorn status. While Gameskraft attracts a devoted following of 30 million gamers, MPL boasts an amazing 90 million users. After the new government action, the valuations of all these companies, which were previously valued at $1 billion or more, have fallen below the unicorn level.
The report further notes that non-unicorn gaming startups such as Zupee and Winzo Games have experienced a significant decrease in valuation as well, revealing the widespread impact on the broader RMG industry.
New Law Reshapes India’s Gaming Industry:
Last month, the Indian Parliament enacted a bill banning all forms of online money games but actively promoting eSports and online social gaming. The law imposes a complete ban on advertisements for money games and tightly restricts banks and financial institutions from processing related transactions. These regulatory changes also come paired with stricter taxation rules and tougher limits on marketing, sponsorships, and service delivery within the sector.
Mass cuts in marketing expenditures, the cancellation of high-profile sponsorship agreements like those with the Indian cricket team, and layoffs that have eliminated an important portion of the personnel at impacted RMG enterprises are some of the immediate effects. As a result, growth prospects and investor confidence have both declined significantly according to the ASK Private Wealth study. However, some analysts think that in the long run, stricter rules can result in a more reliable and stable sector..
Overall Unicorn Counts Continue to Grow:
In contrast to the setback experienced in the RMG domain, the overall number of Indian unicorn startups has continued to rise. Eleven fresh entrants to India’s unicorn club were noted this year, expanding the list to a total of 73. Notable newcomers include Ai.tech, Navi Technologies, Vivriti Capital, Veritas Finance, Rapido, Netradyne, Jumbotail, DarwinBox, Moneyview, Juspay, and Drools.
Among all startups, discount brokerage Zerodha claimed the highest valuation of $8.2 billion, followed by Razorpay and Lenskart at $7.5 billion each. Bengaluru maintains its position as the country’s primary unicorn hub, boasting 26 unicorns with a collective valuation of $70 billion, ahead of Delhi-NCR and Mumbai.
Startups Focus on Profitability and Sustainable Models:
The Hurun report also highlights the employment impact of high-value startups, which together provide 3.74 lakh jobs. Unicorns alone are responsible for 2.06 lakh positions. Venture capital star Peak XV Partners stands as the most influential institutional investor in the category, backing 68 high-value companies such as Groww, Turtlemint, and Oyo’s PRISM.
Founders and investors are now focusing more on profitability, capital efficiency, and long-term business sustainability as they overcome regulatory obstacles and changing market realities. They are moving away from cash burn and toward business models designed to withstand a rapidly changing legal landscape.
