India's 2025 Startup Shutdowns: Fewer in Number, Deeper Systemic Faults Exposed

• India saw 730 startup shutdowns in 2025, a sharp drop from 3,903 in 2024, but this masks deeper issues.
• Fewer shutdowns are due to a reduced pipeline of new ventures after 2022's funding slowdown, not increased resilience.
• Failures in 2025 involved larger, well-funded startups like The Good Glamm Group, Hike, Dunzo, Builder.ai, and BluSmart, revealing problems with leverage, relevance, and governance.
• The ecosystem is recalibrating, prioritizing profitability, strong governance, cash visibility, and product relevance over scale-first or debt-fueled growth.
• This shift signifies a more institutional and disciplined phase for India's startup landscape, moving away from past excesses.

Why It Matters: India's startup ecosystem is maturing, with fewer but more impactful failures highlighting a shift to discipline.