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India's Startup Scene: 6,385 Ventures Close Doors
2 Dec
Summary
- Over 6,300 recognized startups have been categorized as closed by October 31.
- Maharashtra reported the highest number of closed startups at 1,200.
- Startups are eligible for income tax benefits under the Startup India initiative.
As of October 31, 2025, the Ministry of Corporate Affairs has recorded 6,385 recognized startups as 'closed.' This figure represents ventures that have either dissolved or been struck off from official records. The majority of these closures, totaling 1,200, were in Maharashtra, followed by Karnataka and Delhi.
The Indian government offers various incentives, including income tax benefits, to eligible startups through the Startup India initiative. Despite these measures, the closures highlight challenges faced by new businesses. The Minister of State for Commerce and Industry stated that the government has not observed an overall increase in startup closures.
Factors influencing startup success or failure are multifaceted, including business model viability, market demand alignment, economic conditions, funding accessibility, and specific business-related challenges. To support ventures, the government runs flagship schemes like the Fund of Funds for Startups and the Startup India Seed Fund Scheme, aiming to provide crucial financial backing.
