More than 28,000 startups have closed operations in the past two years, with 15,921 shutting down in 2023 and 12,717 in 2024. Data from the intelligence platform Tracxn shows that these closures are due to reasons ranging from bankruptcy to extended periods of inactivity. The figures represent a significant increase compared to the 2,300 startups that closed between 2019 and 2022.
The number of newly launched startups has also declined, with only 5,264 startups founded in 2024, down from over 9,600 per year between 2019 and 2022. In 2025, only 125 startups have been established so far.
Indian startup closures and sector impact
Agritech, fintech, edtech, and healthtech are among the sectors most affected by these shutdowns. Many of these startups faced challenges due to high cash burn from substantial early investments and an aggressive “growth-at-all-costs” mentality. Low customer retention also contributed to inflated operational costs.
The report highlights a decrease in startup acquisitions, dropping from 248 in 2021 to 131 in 2024. This lack of consolidation within the startup ecosystem is another factor contributing to the high number of closures. While 259 startups have already shut down in 2025, experts anticipate that this number will rise in the coming months.
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