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India’s Startup Closures Soar: 11,223 Companies Fold in 2025
India saw over 11,000 startup closures in 2025 — a 30% surge — pointing to tougher funding and execution conditions.
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.