According to data from Tracxn, 11,223 Indian-registered startups have shut down in 2025, marking a roughly 30% increase from the same period last year. Analysts say the surge reflects funding constraints, earlier-stage failures and tougher business conditions—not just valuations. While the number of new funding rounds remains healthy, ecosystem watchers urge focus on sustainability and business-model strength. The trend could reshape investor risk appetite and funding patterns across 2026.