The number of Indian startups founded since 2019 that have become dormant (i.e., ceased active operations but not formally shut down or bankrupt) as of September 2025 is not directly reported in a single comprehensive source. Data on dormancy is sparse because neither the Department for Promotion of Industry and Internal Trade (DPIIT) nor private trackers like Tracxn explicitly break down dormancy for specific cohorts. However, we can estimate this using available data on startup closures, active companies, and general business dormancy trends from the Ministry of Corporate Affairs (MCA) and other sources.

Key Definitions

(a) Dormant: A startup that is incorporated but not actively conducting business, not filing annual returns, or not pursuing operations, yet not formally struck off or bankrupt. Under MCA rules, a company can apply for dormant status (Section 455) or be deemed dormant if it fails to file returns for two consecutive years, risking strike-off.

Also See

Startups Actually Doing Business, Ensuring Statutory Compliance, And Filing Returns In India Since 2019

Startups Actually Doing Business, Ensuring Statutory Compliance, And Filing Returns In India Since 2019

(b) Startups Founded Since 2019: Based on prior estimates, approximately 174,000 startups (DPIIT-recognised) or 97,000 (Tracxn, broader cohort) were founded from 2019 to September 2025.

See Also

Startups Journey In India From 2019 To September 2025

Startups Journey In India From 2019 To September 2025

(c) Survived/Active: DPIIT estimates ~165,000–168,000 active startups from this cohort; Tracxn estimates ~53,000–66,000 survived (after accounting for ~31,000 closures).

See Also

Survival Of Bootstrapped Startups In India Since 2019 Till September 2025

Survival Of Bootstrapped Startups In India Since 2019 Till September 2025

Estimating Dormant Startups

(a) Total Founded (2019–2025):

(i) DPIIT: ~174,000 (recognised startups, adjusted for 2019–2025 cohort).

(ii) Tracxn: ~97,000 (2020–2024, plus ~14,000 for 2019).

(b) Closed/Shut Down:

(i) DPIIT: 6,019 recognized startups shut down (total since 2016, pro-rated for 2019–2025: ~5,500 for this cohort, as most closures are recent).

(ii) Tracxn: ~31,197 closures since 2019 (2,300 pre-2023, 15,921 in 2023, 12,717 in 2024, ~500–1,000 estimated for 2025).

(c) Active: DPIIT: ~165,000–168,000; Tracxn: ~53,000–66,000.

(d) Dormant Estimate:

MCA data indicates ~2,500 companies (not startup-specific) are formally dormant, and ~35% of registered companies (all types, ~2.8 million total) are non-compliant or potentially dormant (not filing returns). For startups (newer entities), dormancy is lower due to shorter operational history.

For startups, dormancy is often a precursor to closure. Tracxn notes ~10–15% of startups not closed but not active (e.g., no funding, no updates, no filings) may be dormant. Applying this to the 2019–2025 cohort:

(i) DPIIT: ~174,000 total – ~165,000 active – ~5,500 closed = ~3,500–4,000 dormant.

(ii) Tracxn: ~97,000 total – ~60,000 active (midpoint) – ~31,000 closed = ~6,000 dormant (10–15% of non-active, non-closed).

Final Estimate

Dormant Startups (Founded Since 2019, as of September 2025)

(a) DPIIT-based: ~3,500–4,000.

(b) Tracxn-based: ~5,000–6,000.

The Tracxn estimate is likely more realistic for the broader startup ecosystem, as DPIIT undercounts closures and may overstate active status due to recognition requirements. Dormancy is higher in sectors like edtech and fintech post-2022 funding winter.

Notes

(a) Dormancy is often underreported, as startups may not formally declare it. Many simply stop filing returns, leading to MCA strike-off notices (~14,000 companies struck off annually, some startups).

(b) Reasons for dormancy include funding shortages, regulatory issues, or founders pivoting to new ventures without formally closing the company.

(c) Data gaps exist because dormancy is not tracked as rigorously as closures or bankruptcies. The estimate assumes most non-active, non-closed.

Narratives and political lies are totally different from ground realities and this applies aptly to startup community of India. On paper, we may have more than a lakh startups, but in reality we have very few startups that have actually survived their journey from 2019 to September 2025.

Obviously, statutory compliance and filing of tax return is a rarity in Indian startup culture than the norm. This is more so with bootstrapped startups that have been abandoned by our govt and who have very little incentive to spend more on useless statutory compliance and tax return formalities.

See Also

(1) Startups Journey In India From 2019 To September 2025

Startups Journey In India From 2019 To September 2025

(2) Survival Of Bootstrapped Startups In India Since 2019 Till September 2025

Survival Of Bootstrapped Startups In India Since 2019 Till September 2025

As of September 2025, approximately 6.4% of Indian startups have received funding from any source (primarily venture capital, private equity, angel investments, or government grants). Historical trends show consistent low funding rates; for example, a 2023 report indicated only 6% of startups were funded up to 2020. While funding activity peaked in 2021, the overall percentage has remained in a similar range through 2025 due to the rapid growth in the total number of startups. So, 93% of startups remain unfunded due to bootstrapping, regulatory hurdles, and investor caution post-2022 and till September 2025.

Startups Surviving From 2019 To 2025

The number of survived Indian startups founded since 2019 that are actively doing business (i.e., operational and not dormant) and complying with statutory requirements (e.g., filing MCA annual returns, GST, income tax) as of September 2025 is challenging to pinpoint exactly, as there is no single source tracking all startups with this level of detail. DPIIT-recognised startups cannot serve as the best proxy, since DPIIT is biased and working to maintain a positive and flourishing outlook for Indian startups. Tracxn data provides a complementary view but is more focused on funded or tech startups and under counts total activity.

Key Estimates

(a) Total DPIIT-recognised startups (all since 2016, but 90%+ founded since 2019 per growth trends): 180,683 as of July 2025.

(b) Shut down: 6,019 (these are de-recognised or ceased operations, implying non-active/non-compliant).

(c) Active and compliant: ~174,664 (total recognized minus shut down). For those founded since 2019 specifically: ~165,000–168,000 (adjusting for pre-2019 cohort of ~10,000–12,000).

(d) Using Tracxn (more conservative, focuses on broader founded companies but higher closure estimates): ~53,000–66,000 active survived from 2019 cohort, with compliance implied for survivors as non-filers risk strike-off under MCA rules.

Metric	DPIIT Estimate (Since 2019 Cohort)	Tracxn Estimate (Since 2019 Cohort)
Total Founded	~174,000	~97,000
Survived/Active	~165,000–168,000	~53,000–66,000
Active & Compliant	~165,000–168,000 (assumed for recognized active)	~53,000–66,000 (assumed for survived)

Notes On Activity And Compliance

(a) Active (Doing Business): DPIIT shut-down figure (6,019) accounts for ceased/dormant entities. MCA data shows only ~2,500 dormant companies total across all India (not startup-specific), so most survived startups are active. Startups can be struck off if dormant/non-filing for 2+ years, but active status does not imply an ongoing business.

(b) Statutory Compliance/Filing Returns: No direct stats on filing rates for startups, but MCA requires annual filings (e.g., MGT-7, AOC-4) to avoid penalties or strike-off. Recognised startups can self-certify compliance for certain laws, and only ~2% pursue advanced tax exemptions requiring strict audits, suggesting variable compliance but high for active ones. Overall MCA active companies (1.82 million total) are ~65% of registered, but for recent incorporations like startups, the rate is higher (~80–90%) due to less time for non-compliance buildup.

DPIIT figures are recommended as the primary estimate, as they specifically track startups and align with government definitions. Actual numbers may be higher if including unrecognised startups, but compliance data is sparse beyond this.

Bootstrapped startups in India have thrived since 2019, with many founders opting for self-funding to maintain control and sustainability. This trend has led to a significant increase in the number of successful bootstrapped companies, showcasing resilience in a challenging funding environment.

Founders prefer bootstrapping to avoid the pressures of rapid scaling and external investor demands. Bootstrapped startups often focus on profitability and lean operations, leading to more sustainable business models.

Also See

Startups Journey In India From 2019 To September 2025

The number of survived Indian startups founded since 2019 that have remained bootstrapped (i.e., self-funded without any external equity or debt funding) as of September 2025 is not explicitly tracked by a single source, as data on funding status is not always comprehensive or broken down by founding cohort. However, using Tracxn as a primary source for private startup data (which tracks a broader set of companies than DPIIT’s government-recognised subset), we can estimate this figure based on overall patterns.

Key Estimates

(a) Total startups founded 2020–2024 (last 5 years, as a proxy for since 2019; add ~14,000 for 2019 founded per prior DPIIT trends): ~97,000.

(b) Survived startups from this cohort: ~66,000 (adjusting for 2019; prior Tracxn estimate for 2020–2024 was ~53,277 after ~31,000 closures).

(c) Funded startups overall (unique companies ever raised funding): 31,300 out of 492,000 tracked companies (~6.4% funded rate).

(d) Applying a similar funded rate to the recent cohort (likely conservative, as newer startups have slightly higher funding access): ~4,200 funded from this cohort.

(e) Bootstrapped survived startups: ~61,800 (total survived minus funded, assuming most funded survive due to better resources; bootstrapped make up ~93.6% overall per Tracxn patterns).

This estimate aligns with reports indicating that 90–95% of Indian startups remain bootstrapped, as external funding is rare and typically goes to a small subset in tech-heavy sectors like fintech, e-commerce, and AI. Closures are higher among bootstrapped startups due to limited resources, but the majority of survivors are bootstrapped.

Metric	Estimate (Since 2019 Cohort)
Total Founded	~97,000
Survived	~66,000
Funded Survived	~4,200
Bootstrapped Survived	~61,800

Note: DPIIT data yields higher estimates (survived ~168,000, bootstrapped ~157,000 if 93% rate), but it only covers recognised startups and under reports closures, making Tracxn more reliable for survival and funding status. Actual figures may vary slightly with 2025 H2 data.

Startup ecosystem of India is many decades old and it dates back to 1990 when the entrepreneurship journey of India in the modern era started. It gained significant momentum around 2014-2016. The Indian government’s launch of the Startup India initiative in 2016 is a landmark event that officially kickstarted the focused development of the country’s startup culture. That is why we are taking 2019 as the base year for the limited purpose of this article.

Early Beginnings (1990s–Early 2000s)

The rise of information technology (IT) service giants like Infosys, Wipro, and TCS in the 1990s created the foundation and infrastructure for a tech-based economy. The dot-com boom of the early 2000s, with pioneers like MakeMyTrip (2000) and Naukri.com (1997), introduced the concept of online business to India.

E-Commerce Boom (2007–2012)

The founding of Flipkart in 2007 is widely regarded as a watershed moment for the Indian consumer internet and e-commerce space, inspiring a new wave of entrepreneurs. Other major players like Zomato (2008), Ola (2010), and Paytm (2010) emerged during this period, fueled by increased internet penetration and smartphone adoption.

Exponential Growth And Government Support (2014–Present)

(a) The Tipping Point (Around 2014): A major turning point occurred around 2014 as the ecosystem experienced a surge in entrepreneurial activity, supported by increased access to capital, a growing talent pool, and a cultural mindset shift toward entrepreneurship.

(b) The Startup India Initiative (2016): Launched on January 16, 2016, this government initiative is a key driver of the modern startup ecosystem. It provided a suite of measures and policy support, including tax exemptions and a fund-of-funds scheme, to accelerate growth.

(c) Rapid Expansion: Since 2016, the number of government-recognized startups has grown exponentially, from just a few hundred to more than 159,000 by early 2025.

(d) Creation Of Unicorns: The number of unicorn startups (valued at over $1 billion) also surged, making India the third-largest ecosystem for unicorns in the world.

Indian Startup Era From 2019 To September 2025

The following is a summary of available data on Indian startups founded since 2019 as of September 2025. The exact figures vary by source, as there is no single central registry for all startups—data is primarily from the Department for Promotion of Industry and Internal Trade (DPIIT) for recognised startups (a subset of all startups that apply for government recognition and benefits) and Tracxn (a private database that tracks company formations and shutdowns). DPIIT recognition is a good proxy for newer startups, as eligibility requires the company to be less than 10 years old, and recognition often happens soon after founding. Tracxn data is based on founded date.

Number Of Startups Founded In India Since 2019

(a) According to Tracxn, approximately 83,277 startups were founded in India in the last 5 years (2020–2024).

(b) Using DPIIT data as a proxy (new recognitions since 2019):

(i) Cumulative recognised startups as of July 2025: 180,683 (since program start in 2016).

(ii) Cumulative as of December 2019: 23,657.

(iii) New recognitions from 2020 to July 2025: 180,683 – 23,657 = 157,026.

(iv) Adding an estimate for new recognitions in August–September 2025 (based on 2025’s average monthly rate of ~3,600): approximately 160,000–162,000 startups founded since 2019.

Year	New DPIIT RecogniSed Startups (Approximate)
2019	~14,000–15,000 (estimated based on growth trends from 23,157 new in 2017–2019 total)
2020	~20,343 (from end 2019 to end 2020: 44,000 – 23,657)
2021	~16,287 (from end 2020 to end 2021: 60,287 – 44,000)
2022	~26,000
2023	~30,967 (from end 2022 ~86,287 to end 2023 117,254)
2024	~40,452 (from end 2023 117,254 to end 2024 157,706)
2025 (up to July)	22,977 (from end 2024 157,706 to July 2025 180,683)
Total since 2019	~171,026 (up to July; ~174,000 estimated to September)

Number Of Startups That Ceased Operations

Startups that have ceased operations (shut down).

(a) As per Ministry of Corporate Affairs data (via DPIIT): 6,019 recognised startups have shut down as of July 2025 (total ever since 2016, not limited to those founded since 2019).

(b) As per Tracxn and related reports (likely more comprehensive, including non-recognised startups):

(i) Total shutdowns since 2019: ~31,197.

(ii) Breakdown: 2,300 (2019–2022), 15,921 (2023), 12,717 (2024), ~259+ (2025 up to mid-year, estimated to rise to 500–1,000 by September).

(iii) Reasons for closures include funding shortages, regulatory hurdles, unsustainable models, and post-pandemic market shifts (e.g., in edtech, fintech, and healthtech).

Most closures (over 90%) are from startups founded in recent years, as failure rates are highest in the first 5 years.

Number Of Bankrupt Startups

Specific data on formal bankruptcy filings for startups is limited, as many Indian startups close without entering insolvency proceedings under the Insolvency and Bankruptcy Code (IBC)—they simply cease operations or get acquired. Reports note that “some” of the 31,197 shutdowns since 2019 involved bankruptcy, but no exact count is provided.

(a) Statista reports ~1,500–2,000 total business insolvencies per year in India across all companies (not startup-specific), with manufacturing and construction leading (startups are mostly in tech/services).

(b) Notable startup bankruptcy examples since 2019 include Builder.ai (2025) and a few others like DHFL (2019, though not a startup), but overall, bankruptcy filings for startups are estimated at under 500 since 2019, as formal IBC is more common for larger companies.

How Many Startups Survived As Of September 2025

Survival is total founded minus closed/bankrupt (assuming most bankruptcies are included in closures).

(a) Using DPIIT data (conservative, as closures are low): ~174,664 active recognised startups overall (180,683 total recognised minus 6,019 closed). For those founded since 2019: ~165,000–168,000 survived (estimated total founded since 2019 minus proportional closures).

(b) Using Tracxn data (more aggressive for closures): ~83,277 founded (2020–2024) minus ~30,000 closures since 2019 = ~53,277 survived (adjusting for 2019 founded and assuming most closures are from this cohort).

General survival rate for Indian startups is ~10% long-term, but for recent cohorts (since 2019), it’s too early to determine final rates, as many are still in early stages.