Archive · 10 Dec 2025
High Activity Start-Up Hubs See Larger Closures
Some places in India where there are lots of new businesses, like Karnataka, Delhi, and Maharashtra, are seeing more of these businesses close down.
This is because these places have a lot of money available for new businesses, which allows people to try new ideas and take risks.
Sometimes, these risks don't work out, and the businesses have to close.
But it's not necessarily a bad thing because it means people are trying new things and learning.
In other places where businesses grow more slowly, there are fewer closures because they focus on being stable and not spending too much money.
Karnataka has the highest share of closed start-ups with 845 (4.1%) out of 20,745.
Delhi recorded 737 closed start-ups (3.8%) out of 19,576.
Maharashtra posted 1,200 closed start-ups (3.4%) out of 35,200.
West Bengal has a closure rate of 3.5% with 6,611 start-ups.
States with an MSME focus like Tamil Nadu, Bihar, and Gujarat have lower closure rates of 2-2.5%.
- Who
- Start-up hubs in Karnataka, Delhi, Maharashtra, and West Bengal
- What
- Higher closure rates of start-ups
- When
- As of October 31, 2025
- Where
- India, particularly in Karnataka, Delhi, Maharashtra, and West Bengal
- Why
- Due to higher early-stage capital availability, aggressive scaling, and higher burn rates in mature start-up ecosystems
- Total Closed Start-Ups
- 6,385
- Karnataka Closed Start-Ups
- 845 (4.1%)
- Delhi Closed Start-Ups
- 737 (3.8%)
- Maharashtra Closed Start-Ups
- 1,200 (3.4%)
- West Bengal Closed Start-Ups
- 3.5%
- Tamil Nadu, Bihar, Gujarat Closure Rates
- 2-2.5%