India, June 30 -- Globally, there are more than 150 million startups in active mode. As of March 31, 2026, India has over 2.23 lakh DPIIT-recognised startups, with over 55,200 entities registered in FY 2025-26 alone. The actual figure will be much higher.

There is, however, one major caveat. More than 90 percent fail to reach cruising altitude, shattering both ambitions and wallets in the delusional process. According to CB Insights, 42% of startups fail due to poor market timing, while team and execution follow as a close second. Data from Tracxn further states that over 28,000 startups have collapsed in the last two years, particularly in sectors such as fintech, edtech and health care.

This raises an important question. What explains...