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Startup shutdowns increase 12-fold
Financial Express Mumbai
|April 24, 2025
The Tide Turns
THE WORLD'S THIRD-LARGEST startup ecosystem has notched up an unenviable record. Over 28,000 startups have shut up shop in the last couple of years — 15,921 in 2023 and 12,717 in 2024. While some of them have filed for bankruptcy, others have remained inactive for more than a year. That's an over 12-fold jump from 2,300 shutdowns in the previous three years — 2019-2022, according to data intelligence platform Tracxn.
There's more. The number of startups launched fell to just 5,264 in 2024 from over 9,600 a year between 2019 and 2022. This year so far, only 125 startups have been founded. Experts attribute these trends to a "delayed correction" or a calibration rather than a failure of the ecosystem.
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