India, June 23 -- India PR Distribution

New Delhi [India], June 23: Most Indian startups do not fail because the idea was wrong. They failed because the money ran out. And a large part of that money was gone before the first customer ever paid, locked into office rent and a fat security deposit.

Around 90 per cent of Indian startups shut down within their first five years, and running out of cash is one of the most common reasons behind it. This is not guesswork. Government data placed before the Lok Sabha shows that more than 6,300 startups recognised under the Startup India programme had shut down by October 2025. Maharashtra led with 1,200 closures, followed by Karnataka at 845 and Delhi at 737. Founders plan for 18 to 24 months of r...