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India Sees 6,000+ Startup Closures Amid Funding Winter
2 Dec
Summary
- Over 6,385 DPIIT-recognized startups have ceased operations nationwide.
- Maharashtra and Karnataka report the highest number of startup closures.
- Government states no significant increase in startup shutdowns observed.
India's startup landscape has witnessed the closure of over 6,385 DPIIT-recognized entities. Maharashtra leads with 1,200 shutdowns, closely followed by Karnataka with 845. Delhi and Uttar Pradesh also show significant numbers of startup failures.
The Minister of State for Commerce and Industry affirmed that these closures do not represent an increase, citing factors like business viability, market demand, and economic conditions. This assertion comes amidst a challenging period for the world's third-largest startup ecosystem, grappling with a prolonged funding winter and global economic headwinds.
As of October 31, 2025, India hosts 1,97,692 DPIIT-recognized startups. To achieve this recognition, firms must meet criteria including age, turnover, and innovation focus, ensuring the ecosystem comprises dynamic and potentially job-creating ventures.
