Indian Startup Failure Statistics
High overall failure rate:
• Around 90% of Indian startups fail within five years of launch — a figure repeatedly cited in ecosystem analyses and founder surveys.(LinkedIn)
Year-by-year attrition:
• About 20% of startups fail in their first year due to issues like lack of market validation or funding challenges.
• 30–40% fail by the end of year two.
• 70–90% fail before five years, often due to cash constraints, product-market fit issues, and scaling problems.(LinkedIn)
Recent closures (2023–2025):
• In 2023, 15,921 Indian startups closed operations.
• In 2024, around 12,717 closed.
• In 2025 alone, over 11,000 startups have shut down as of recent data — showing continuing ecosystem volatility.(LinkedIn)
– This points to roughly 37 startups closing every day in 2025 if closure trends continue.(LinkedIn)
Government-recorded closures:
• As of October 2025, 6,385 DPIIT-recognized startups were officially listed as closed (dissolved/struck off) per government records.(The Economic Times)
Survival context:
• Only about 10–20% of startups remain operational after five years, with even smaller numbers making it past a decade.(LinkedIn)






