Indian startups shut down in 2025: The year 2025 has quietly but firmly rewritten the contours of the Indian startup ecosystem. Even as new businesses kept coming in, a silent saga of closures, bankruptcy proceedings, and abrupt endings to once-adequately-funded dreams unfolded beneath the glacial surface.
Based strictly on a 2025 dataset of Indian startups that folded in the year, a pattern is clear: scale alone did not ensure survival. Many of the country’s most visible and heavily funded startups exited the stage in what is perhaps one of the most consequential shakeouts in recent years.
From consumer internet and mobility to enterprise tech and digital platforms, the shutdowns cut across sectors, funding stages, and founding eras.
Below are the Top 10 Indian startup shutdowns of 2025, ranked by total disclosed funding, followed by an analytical reading of what this list reveals about the state of the ecosystem.
Top 10 Indian Startups That Shut Down in 2025
1. Dunzo*
- Founded: 2015
- Total funding: $485 Mn
- Key investors: Reliance Retail, Google, Blue
Once positioned as a frontrunner in India’s hyperlocal delivery space, Dunzo stands out as the single largest shutdown on the 2025 list by funding raised.
2. Builder.ai*
- Founded: 2012
- Total funding: $450 Mn
- Key investors: Jungle Ventures, Qatar Investment Authority
An enterprise-focused platform with a global footprint, Builder.ai’s shutdown underscores how even long-running startups with international capital were not immune to the year’s pressures.
3. hike
- Founded: 2012
- Total funding: $261 Mn
- Key investors: Tiger Global, SoftBank
One of India’s earliest messaging and social platforms, hike’s inclusion highlights how legacy consumer internet plays continued to struggle with long-term sustainability.
4. The Good Glamm Group*
- Founded: 2015
- Total funding: $250 Mn
- Key investors: Accel, Bessemer Venture Partners, Prosus, Warburg Pincus
A content-to-commerce roll-up model that attracted the world’s biggest investors, the shutdown of The Good Glamm Group is one of the most anticipated exits of the current year.
5. BluSmart
- Founded: 2019
- Total funding: $224 Mn
- Key investors: Alteria Capital, BlackSoil, Survam Partners
The closure of BluSmart highlighted the capital-intensive mobility solutions that exist at a larger scale in India’s urban markets.
6. Qtipy
- Founded: 2020
- Total funding: $71.1 Mn
- Key investors: Inflection Point Ventures, InnoVen Capital
Among newer startups on the list, Qtipy’s shutdown shows that even post-2020 ventures with sizable funding were affected in 2025.
7. LOG9
- Founded: 2015
- Total funding: $60 Mn
- Key investors: Peak XV Partners, Exfinity, Amara Raja
LOG9’s presence is a sign of the underlying stress that is evident in advanced manufacturing and energy-related startup models this year.
8. Altigreen Drive Electric
- Founded: 2013
- Total funding: $41.7 Mn
- Key investors: Reliance, Sixth Sense Ventures, Xponentia Capital
Although started with great fanfare in electric mobility, the shut down of Altigreen reveals that by 2025, the startups in the first wave were facing increasing difficulties.
9. Niro
- Founded: 2021
- Total funding: $20 Mn
- Key investors: Elevar Equity, Patni Family, InnoVen Capital
A relatively young fintech-focused venture, Niro’s exit shows how recent entrants were also part of the broader correction.
10. BeepKart
- Founded: 2020
- Total funding: $19.5 Mn
- Key investors: Stellaris Venture Partners, Chiratae Ventures
BeepKart completes the list of top ten startups that raised institutional funds in the batch of startups after 2020 with the same shutting down in 2025.
Indian Startups Shut Down in 2025: A defining year, not an anomaly
Taken together, these shutdowns do not represent isolated failures. They form a collective signal, 2025 was a year when India’s startup ecosystem moved decisively away from momentum-driven survival toward a far harsher reality.
What remains after this churn is likely to be leaner, more selective, and structurally different from the boom years that preceded it.
Also Read: Indian AI Startups Collapse: Wuri, CodeParrot, Subtl.ai & Locale.ai
