The year 2025 quietly but significantly reshaped India’s startup ecosystem. While new ventures continued to emerge, a parallel story unfolded beneath the surface: closures, bankruptcies, and abrupt endings to once well-funded startups.
Analysis of 2025 data on Indian startup shutdowns shows a clear trend: scale and funding alone did not guarantee survival. Even some of the most visible and heavily backed startups exited the stage, marking one of the most significant ecosystem shakeouts in recent memory.
Shutdowns spanned multiple sectors, from consumer internet and mobility to enterprise tech and digital platforms, affecting startups at various funding stages and founding eras.
Top 10 Indian Startup Shutdowns of 2025 (by disclosed funding)
- Dunzo – Founded 2015, Funding $485M, Investors: Reliance Retail, Google, Blue
Once a leader in hyperlocal delivery, Dunzo tops the list as the largest-funded shutdown of the year. - Builder.ai – Founded 2012, Funding $450M, Investors: Jungle Ventures, Qatar Investment Authority
A global enterprise platform, Builder.ai’s closure highlights that even long-standing, internationally backed startups were not immune. - hike – Founded 2012, Funding $261M, Investors: Tiger Global, SoftBank
One of India’s first messaging platforms, hike’s shutdown underscores ongoing sustainability challenges for legacy consumer internet ventures. - The Good Glamm Group – Founded 2015, Funding $250M, Investors: Accel, Bessemer, Prosus, Warburg Pincus
A content-to-commerce roll-up, its exit was one of the year’s most anticipated. - BluSmart – Founded 2019, Funding $224M, Investors: Alteria Capital, BlackSoil, Survam Partners
The shutdown illustrates the capital-intensive nature of large-scale urban mobility solutions. - Qtipy – Founded 2020, Funding $71.1M, Investors: Inflection Point Ventures, InnoVen Capital
A post-2020 venture, Qtipy shows that even relatively new startups faced pressures in 2025. - LOG9 – Founded 2015, Funding $60M, Investors: Peak XV Partners, Exfinity, Amara Raja
The closure points to stress in advanced manufacturing and energy-focused startup models. - Altigreen Drive Electric – Founded 2013, Funding $41.7M, Investors: Reliance, Sixth Sense Ventures, Xponentia Capital
Part of India’s early wave of electric mobility startups, its shutdown reflects growing difficulties for first-wave ventures. - Niro – Founded 2021, Funding $20M, Investors: Elevar Equity, Patni Family, InnoVen Capital
A young fintech venture, Niro’s exit shows even recent entrants were affected by broader market corrections. - BeepKart – Founded 2020, Funding $19.5M, Investors: Stellaris, Chiratae Ventures
Completing the list, BeepKart reflects the challenges faced by post-2020 funded startups.
2025: A Defining Year for Indian Startups
These shutdowns were not isolated incidents. Together, they signal a shift in India’s startup ecosystem—from survival driven by momentum to a more demanding, selective environment. What emerges is likely to be leaner, more disciplined, and structurally different from the boom years that preceded it.
