India’s celebrated start-up boom is facing its darkest hour. Fresh figures show a massive 30% spike in company closures—many involving once-hyped apps and consumer brands.
The Big Crash
Chasing explosive growth at all costs, founders burned through billions. Now, wary investors and elusive profitability have led to over 11,000 startups shutting down in just ten months—as stealth layoffs, founder exits, and vanishing websites become the new normal.
IIT grads and serial entrepreneurs admit privately to hiding losses or quietly winding down operations rather than eroding investor confidence. Even unicorns face ‘down rounds’ and deep cuts.
What’s Fueling the Collapse?
Experts blame a “reality check” in global investment, fierce competition, and the high cost of customer acquisition. Government schemes are pivoting hard toward DeepTech and AI; only those with genuine product-market fit or export potential are surviving.
“The days of burning millions for growth are over—2025 is all about survival,” says investor and former founder Abhishek Ranjan.
If you’re a founder today, survival means transparency and real revenue—not moonshot dreams.
