6,385 startups closed till October: Ministry

New Delhi: As on October 31, 2025, 6,385 recognised startups are categorized as closed that is dissolved/struck-off, the commerce and industry ministry told Rajya Sabha, adding that the government has not observed any increase in startup closures. Of these, 1,200 are in Maharashtra, 845 in Karnataka, 737 in Delhi, 598 in Uttar Pradesh and 368 in Telangana. As on October 31, 2025, ₹850 crore is committed to AIFs and ₹879.57 crore have been disbursed /drawn down by AIFs.

"Closures that do occur are generally influenced by factors such as the viability of the business model, alignment with market demands, domestic and global economic conditions, the nature of products and services developed, the ability to attract funding, and other business specific considerations," it said. A sum of ₹42.3 crore have been approved to incubators and ₹ 94.6 crore disbursed to them. Under the Credit Guarantee Scheme for Startups, ₹153.4 crore loans were guaranteed to startup borrowers in calendar year 2025 as on October 31.