From Burn To Breakdown: 25 Startups That Shut Down In 2025
by Palak Sharma · Inc42SUMMARY
- The past year saw a sharp rise in startup shutdowns, with 25 companies closing amid funding crunch, regulatory shocks and bankruptcy proceedings. Here's a look
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The year 2025 proved to be an exceptionally dynamic one for the Indian startup ecosystem. Despite the surge in the number of IPOs from the startup ecosystem, 2025 was an unprecdented year when it comes to startup shut downs.
As per the data compiled by Inc42 and our exclusive reporting in many cases, nearly 25 startups shut down their operations as of December 23, 2025. This is more than double the 12 startup shutdowns in the previous year.
As per central government data, over 6,000 startups have shut shop, but this only includes those that are struck-off from the Ministry of Corporate Affairs. The real number could be much higher because even some of the companies that are in the below list continue to remain on the record at the MCA.
Now, let’s look at the startups that shut down in 2025. As one can expect, capital crunch played a big role behind the discontinuation of almost all the businesses this year. For instance, subtl.ai, BharatAgri, Blip, Otipy and several others called it quits after multiple failed fundraise attempts.
In contrast, late stage startups BluSmart and The Good Glamm Group had to put a hard stop to their journeys due to major controversies or operational failures. The shutdown of these two led to thousands losing their jobs overnight. While shutdowns impacted almost every sector, the most affected sectors this year turned out to be enterprise tech and AI, followed by consumer services, mobility and fintech.
Here’s a look at the major startup shutdowns of the year, as part of Inc42’s annual ‘Year In Review’ series.