348 ‘startups’ shut down in Gujarat in last 3 years, sixth most in India

Over 348 entities recognised as ‘startups’ have shut down (either dissolved or shut down) during the time span of nearly three years between 2023 to 2025 (till October 31) in Gujarat. The state ranks sixth in terms of shutting down recognised startups in the country.

According to the data of Ministry of Corporate Affairs, the highest – 1200 recognise startups have shut down in Maharashtra, followed by 845 in Karnataka, 737 in Delhi, 598 in Uttar Pradesh and 368 in Telangana across the period between 2023 to 2025 (up till October 31 this year) in the country. In all, over 6,385 recognized startups have closed during the same time period across India.

According to reasons provided by the Ministry of Commerce and Industries – 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.

Over 1,97,692 entities have been recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT), as on October 31, 2025 in the country.

Apart from this over 2.04 lakh private companies have closed during the last five due to amalgamation, conversion, dissolution and strike off under the relevant provisions of the Companies Act, 2013. In the FY 2024-25, 20,365 companies were closed, followed by 21,181 in 2023-24 and 83,452 private companies shut down in the country.