More than 28,000 Startups Shut Shop in Last Two Years: Report

New Delhi: More than 28,000 startups have closed in the last two years – 15,921 in 2023 and 12,717  in 2024 – with reasons ranging from bankruptcy to being inactive for more than a year.

According to the data intelligence platform Tracxn, the number of startups in India which closed shop in these two years are much higher than the 2,300 startups which shut down in three years between 2019 and 2022, reported Financial Express.

Similarly, the number of startups that were launched also decreased to only 5,264 in 2024 from over 9,600 a year between 2019 and 2022.

Till now, only 125 startups have been founded this year.

According to sources, the sectors which witnessed the maximum shutdowns include agritech, fintech, edtech, and healthtech.

Startups in these sectors failed mostly because the early and large capital infusion led to high cash burn and a growth-at-all-cost mentality. Low customer retention was also an added factor, resulting in high operational costs.

According to Tracxn, the number of startup acquisitions has decreased from 248 in 2021 to 131 last year. The lack of meaningful consolidation is another reason for the slower pace of acquisitions and the higher number of shutdowns.

While 259 startups have already shutdown in 2025, experts say that the number will increase in coming months.

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