New Delhi, Jan. 3 -- The startup ecosystem in India is showing clear signs of recovery and maturation, with company shutdowns declining dramatically in 2025. Only 733 startups shut down through December 31, marking an 81 percent drop from the 3,903 closures recorded in 2024, according to data from startup intelligence platform Tracxn.

This is the lowest annual shutdown count since 2020, when 1,543 companies ceased operations, reported FE.

Funding Winter Eases, But Selectivity Remains

The steep decline in shutdowns suggests that the worst phase of the funding winter may be over, with surviving startups displaying stronger fundamentals and more sustainable business models. This trend is supported by signs of stabilisation in funding flow...