Capital crunch, regulatory shocks, and failed pivots led to a record number of startup closures in 2025, with over two dozen companies shutting shop across sectors like mobility, fintech, consumer tech, and AI.
A Year of IPOs—and Insolvencies
Despite a surge in IPOs and bullish investor sentiment in segments like wealthtech and enterprise AI, 2025 turned into the worst year yet for Indian startup shutdowns.
- According to Inc42, 25 high-profile startups shut down this year—more than double the 12 closures in 2024.
- Government data indicates that 6,000+ startups have been struck off, though the actual number is likely much higher due to lag in regulatory updates.
Startups across sectors—EV, agritech, fintech, enterprise SaaS, AI, and D2C—fell victim to capital constraints, operational breakdowns, regulatory tightening, and in some cases, founder conflicts and controversies.
Key Startup Shutdowns of 2025
⚡ Altigreen (EV/Mobility)
Backed by Reliance, Altigreen ran out of charge after failing to raise new funds amid mounting losses and liabilities. The shutdown of its Karnataka manufacturing unit marked the end of its EV journey.
🛒 ANS Commerce (Enterprise SaaS)
Acquired by Flipkart in 2022, the D2C enablement platform was wound up in February without explanation. Founders have since moved to Flipkart-backed fintech venture super.money.
🤖 Astra (AI/SaaS)
Founded by Aravind Srinivas, Astra shut down due to founder clashes and market confusion amid the rise of AI agents. Its cofounders have since moved on to new ventures.
🛵 Beepkart (Used Mobility Marketplace)
Despite raising $20 Mn, the used two-wheeler marketplace shut down due to thin margins, store cannibalisation, and high burn. Cofounder Abhishek Saraf has since joined Meesho.
🌾 BharatAgri (Agritech)
The startup couldn’t close a $6–8 Mn funding round, even after cutting losses. Despite growing topline, it failed to cross INR 5 Cr in revenue.
👗 Blip (Fashion Quick Commerce)
A bold “Zepto for fashion” experiment, Blip shut down after failing to raise beyond Bengaluru. Its cofounders moved into cleantech and enterprise sales roles.
🚘 BluSmart (EV Ride-Hailing)
Fraud allegations against founders led to SEBI and NCLT action, app shutdown, and 10,000+ job losses. The EV pioneer’s story ended in controversy.
👨💻 CodeParrot (Developer Tools, YC-backed)
After burning $500K and failing to raise follow-on capital, CodeParrot shut down. The team was stuck in pivot limbo and couldn’t achieve sustainable MRR.
🏏 CrickPe (Gaming)
Launched by Ashneer Grover, CrickPe folded due to 28% GST on real money gaming, high competition, and shifting regulatory norms.
👵 GenWise (Elder Care)
Despite a claimed 30 Lakh user base, GenWise couldn’t monetise its platform for seniors. Losses ballooned, and its Z47 backers couldn’t save the model.
🎮 Hike (Web3/Gaming)
Once a unicorn, Hike shut global operations post-RMG ban. Its pivot to the US market failed, marking the end of its long reinvention journey.
Targeted at women professionals, the members-only app shut down citing high CAC and poor retention. It had raised $2.3 Mn from top angels.
🔋 Log9 Materials (Deeptech/EV)
Despite raising $60 Mn, Log9 collapsed under high debt, tech bets on LTO batteries, and customer issues in its EV leasing business.
💳 Niro (Fintech/Lending)
The embedded lending platform disbursed $200 Mn in loans but shut down due to tightened regulations, deteriorating credit quality, and no follow-on funding.
🍸 O’Be Cocktails (D2C Beverages)
Despite 1,700 retail points and backing from Bhavish Aggarwal, O’Be shut after failing to exit or scale in India’s price-sensitive liquor market.
🚖 Ohm Mobility (EV Financing)
After multiple pivots and failures to scale, Ohm closed shop. Its founder launched a new daily mutual fund savings app, Zeny, targeting gig workers.
🥕 Otipy (Fresh Produce B2B2C)
Despite INR 160 Cr revenue, Otipy collapsed due to cash burn, delayed salaries, and inability to raise a $10 Mn bridge round.
🪙 Plus Gold (Fintech)
The Shark Tank India fame startup raised $1.2 Mn but shut down due to high operating costs and lack of scale. Its founders have since joined Paytm.
🧠 subtl.ai (Enterprise AI)
Aiming to be a “Private Google for enterprises”, the startup couldn’t secure a $1 Mn seed round and shut operations in July. Its founder joined Asthra AI.
🏢 Wherehouse.io (Supply Chain SaaS)
Shut down amid cofounder legal trouble and lack of follow-on funding. The company operated a network of 2,500+ micro-warehouses.
🍱 Zing (Food Delivery)
Its 10-minute food delivery idea failed to attract demand. Data breach issues and weak unit economics led to an early exit from the foodtech space.
🏥 Zoplar (Healthtech)
After raising $3.4 Mn, the startup shut when CDSCO banned refurbished medical device imports, disrupting its core model overnight.
High-Profile Shutdowns or Insolvency Proceedings
🧱 Builder.ai
$450 Mn-funded, AI-powered no-code platform collapsed after Viola Credit seized $37 Mn, leading to UK insolvency proceedings and company-wide layoffs.
🚚 Dunzo
Reliance-backed, Dunzo shut down amid severe losses and failure to scale against competitors like Blinkit and Zepto. Reliance wrote off its $240 Mn investment.
💄 Good Glamm Group
With brands like MyGlamm, POPxo, Moms Co, the beauty-commerce unicorn collapsed due to failed integrations and aggressive M&A. Lenders seized individual brands.
Why So Many Shutdowns in 2025?
- Capital Crunch: Post-2021 excesses and a tight funding environment pushed underperformers off the edge.
- Regulatory Shocks: RMG bans, CDSCO clampdowns, and FEMA issues hurt business viability.
- Unscalable Models: High CAC, poor unit economics, and “growth at all costs” strategies no longer cut it.
- Tech Miscalculations: Many deeptech and AI-first ventures overestimated demand and underestimated go-to-market hurdles.
- Misgovernance: Founder issues (e.g. BluSmart, Wherehouse.io) highlight the risks of weak internal controls.
In 2025, India saw a record 25 startup shutdowns—double from the previous year—across AI, fintech, mobility, and D2C. From high-profile collapses like BluSmart and Good Glamm Group to early-stage flameouts like Blip and CrickPe, the year was marked by capital constraints, regulatory hurdles, and flawed execution.
