New Delhi: As many as 6,385 recognised startups have been categorised as ‘closed’ as on October 31, according to the data from the Ministry of Corporate Affairs, Parliament was informed on Tuesday.
Recognized startups are eligible for a number of incentives, such as income tax benefits under the Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT).
As of October 31 this year, a total of 1,97,692 entities have been recognised as startups.
“As on 31st October 2025, 6,385 recognised startups are categorized as closed (i.e., dissolved/struck-off), as per the Ministry of Corporate Affairs (basis data shared on 11th November 2025),” the Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Lok Sabha.
The maximum number of closed startups is in Maharashtra (1,200). It was followed by Karnataka (845), Delhi (737), Uttar Pradesh (598), Telangana (368), and Tamil Nadu (338).
He said that the government has not observed any increase in startup closures.
“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,” he said.