List Of 15 Promising Indian Startups That Shut Down In 2023

At the end of 2022, there were tell-tale signs of distress in the Indian startup ecosystem. However, not much attention was paid to the eight Indian startups that shut down in 2022 as it was seen as sanity returning to the market after the funding boom of the previous year.

But as 2023 progressed, the impact of the funding slowdown was even more prominent as a wave of shutdowns hit the Indian startup ecosystem, The number of startup shutdowns which 2023 has seen to date is already nearly double the number 2022 saw.

List Of 15 Indian Startups Shut Down In 2023

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Bluepad-Vernacular content platform

Shutdown in April 2023

Fantok-Gaming platform

Shutdown in August 2023

Quizy-Gaming platform

Shutdown in August 2023

Belora-Cosmetics brand

deckndine

Shutdown in October 2023

Dux Education-Edtech startup

Shutdown in April 2023

Connected H-Healthtech startup

Shutdown in August 2023

Fipola-Meat retail brand

lbb

Shutdown in February 2023

Friyey-Co working space startup

Shutdown in July 2023

Anar-B2B networking platform

Shutdown in November 2023

FrontRow-Edtech startup

Shutdown in July 2023

Slash-Fintech startup

Shutdown in August 2023

Pillow-Crypto startup

bqprime

Shutdown in July 2023

Tiki-Short video platform

Shutdown in June 2023

Vahvah-Vocational training startup

Shutdown in July 2023

Wetrade-Crypto startup

Shutdown in February 2023

PenCirlce-Fan patronage startup

Shutdown in June 2023

Also Read: How Hyderabad-based Startup Skyroot Is Aiming To Become India's SpaceX

Why Did So Many Startups Shut Down?

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A key reason behind these startups' shutdowns has been the funding winter. As per Inc42 report, the wave of shutdowns among Indian startups is largely a repercussion of the funding frenzy of 2021 and 2022. During this period, a surge in capital led to the emergence of unsustainable business models. Even viable models were distorted by the ¡®growth at all costs¡¯ mentality, fueled by excessive funding. This approach often neglected the path to profitability and is now faltering under the weight of higher capital costs and attractive, lower-risk investment alternatives in the market.

If investors were apprehensive in 2022, they completely began re-evaluating their investment strategies in 2023. Funding taps suddenly dried up as global interest rate hikes made it tough and unattractive for investors to place their bets on new ventures. This created an extremely challenging environment for homegrown startups that operated on razor-thin margins and, in many cases, were over-reliant on external funding.

Also Read: LinkedIn Releases List Of Top 20 Most Preferred Startups By Employees

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