The year 2025 proved to be an exceptionally dynamic one for the Indian startup ecosystem. Despite the surge in the number of IPOs from the startup ecosystem, 2025 was an unprecdented year when it comes to startup shut downs.

As per the data compiled by Inc42 and our exclusive reporting in many cases, nearly 25 startups shut down their operations as of December 23, 2025. This is more than double the 12 startup shutdowns in the previous year.

As per central government data, over 6,000 startups have shut shop, but this only includes those that are struck-off from the Ministry of Corporate Affairs. The real number could be much higher because even some of the companies that are in the below list continue to remain on the record at the MCA.

Now, let’s look at the startups that shut down in 2025. As one can expect, capital crunch played a big role behind the discontinuation of almost all the businesses this year. For instance, subtl.ai, BharatAgri, Blip, Otipy and several others called it quits after multiple failed fundraise attempts.

In contrast, late stage startups BluSmart and The Good Glamm Group had to put a hard stop to their journeys due to major controversies or operational failures. The shutdown of these two led to thousands losing their jobs overnight. While shutdowns impacted almost every sector, the most affected sectors this year turned out to be enterprise tech and AI, followed by consumer services, mobility and fintech.

Here’s a look at the major startup shutdowns of the year, as part of Inc42’s annual ‘Year In Review’ series.

Indian Startups That Shut Down In 2025

Reliance-Backed Altigreen Runs Out Of Charge

After multiple attempts at another fundraise, EV three-wheeler (E3W) manufacturer Altigreen shuttered down manufacturing in June 2025. The winding down of production effectively led to the startup shutting shop.

As per sources, the shut down came on the back of a severe cash crunch and increasing business liabilities. In its last disclosed financial performance for FY24, the startup’s loss zoomed about 3X YoY to INR 243 Cr while revenue increased about 16% YoY to INR 121 Cr.

The situation, which was acknowledged by the startup, led to closure of its Karnataka manufacturing factory as well as its office. However, Altigreen hasn’t made any official confirmation on its closure till now.

Founded in 2013 by Amitabh Saran, Shalendra Gupta, Lasse Moklegaard, and John Bangura, Altigreen developed EV technologies and solutions focussed on commercial last-mile mobility, primarily through its range of electric three-wheelers. The startup had raised over $40 Mn from investors like Reliance, Jupiter Capital, Sixth Sense Ventures, among others.

Flipkart Pulls The Plug On ANS Commerce

Bengaluru-based enterprise tech startup ANS Commerce, which was acquired by Flipkart in 2022, wound up operations without any clear reasons in February. The IPO-bound ecommerce major, however, said that it planned to absorb a large portion of its workforce moving forward.

The D2C-focussed SaaS platform was acquired in 2022 by Flipkart amid the Walmart-owned company’s bid to strengthen its ecommerce playbook.

Founded in 2017, ANS Commerce enabled businesses to establish digital storefronts, integrate with major marketplaces and manage ecommerce operations including marketplace management, warehousing, and fulfillment.

Following the closure, ANS’ founders Amit Monga, Sushant Puri, and Vibhor Sahare took up roles with Flipkart-backed fintech super.money.

Founder Clash Leads To Astra’s End

Aravind Srinivas-backed AI startup Astra shut down its operations due to disagreements between cofounders.

In July, the startup’s founders and CEO Supreet Hegde announced the development in a post on LinkedIn. Along with hinting towards disagreements with cofounder Ranjan Rajagopalan, Hegde also pointed out the lack of trust from enterprises and the rise in the number of AI agents leading to confusion among clients.

Founded in 2023, Astra offered an AI-powered sales analytics platform that helps businesses optimise salesforce mapping, standardise lead-to-conversation ratios, and improve overall sales effectiveness.

Subsequent to shutting down Astra, Hegde took up an executive role at DevRev while Rajagopalan has been working on a new startup in stealth mode.

Beepkart Ends Four-Year Run

Two-wheeler focussed used marketplace Beepkart pulled the plug on its operations in August due to thin margins and high operating cost. The shutdown came after the startup raised close to $20 Mn in capital from marquee investors like Stellaris Ventures, Chiratae Ventures and InnoVen Capital.

The startup had raised capital to fuel aggressive expansion back in 2022 and then in 2024. This backfired as multiple outlets were set up within close proximity, cutting into each others’ customer base.

At the time of shutdown, cofounders Hemir Doshi and Abhishek Saraf were in talks to sell BeepKart’s assets and tech stack. They were also planning to return capital to investors. Following the closure, Saraf joined Meesho in October and is building the grocery supply chain of the ecommerce major.

BharatAgri Fails To Gain Fervour With Farmers

Agritech startup BharatAgri, which helped farmers increase their incomes through systematic implementation of scientific farming techniques, had to wind down its operations amid a funding crunch.

Cofounder and CEO Siddharth Dialani told Inc42 that although the startup raised some capital from existing investors in 2024 to attain profitability, it was unable to secure fresh funding to continue its operations. It was looking to raise $6 Mn to $8 Mn in a fresh funding round. However, this round didn’t materialise.

On the financial front, BharatAgri reported a loss of INR 22 Cr in FY24, down 14% from INR 25.6 Cr in the previous fiscal. Although it managed to grow its top line by 78% YoY, its operating revenue failed to cross the INR 5 Cr mark.

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