Disruptive Innovations and Risk Mitigation in Indian Unicorns: An Empirical Analysis

Abstract

Research is conducted to explore the role of disruptive innovation in the growth and success of the Indian unicorns, the focus on risk mitigation challenges, particularly in the field of fraud detection and cybersecurity. The study adopts UTAUT3 framework with additional moderators, identifying key factors influencing adopting artificial intelligence (AI) based fraud detection systems, including technological readiness, market maturity, digital literacy, and financial constraints. While Indian unicorns leverage AI, blockchain, cloud computing, and digital payments to enhance scalability and efficiency, improper implementation can result in financial instability. The research conducts quantitative analysis using secondary data collection and reveals a strong EBITDA-Profit correlation (0.81) underscoring the importance of AI in enhancing operational efficiency, whereas high implementation costs and regulatory challenges remain major barriers. The research concludes that to achieve long-term profitability, Indian unicorns must integrate AI-driven fraud detection, optimize cost structures, and diversify revenue models.