CAUSE
One question. One truth.
“Why are Indian startups failing?”
Approximately 42% of Indian startup shutdowns are due to a lack of product-market fit, as many startups build solutions that do not meet market needs or fail to develop sustainable revenue models.
High confidenceStructural
CURRENT STATE
Over 11,000 Indian startups shut down in 2025, a 30% increase from 2024, with layoffs exceeding 4,500 employees since July 2025. Total funding decreased by 17%, and seed-stage investments dropped by 30%.
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