Layoffs in 2025 were largely concentrated in consumer internet, gaming, and AI-led startups. Overall, 24 companies laid off around 3,800 employees during the year
Chennai: Indian startups raised $13 billion in 2025, about 10 per cent lower than $14.4 billion secured in 2024. While there was a rise in startup IPOs and a reduction in layoffs in 2025, startup shutdowns climbed to a three-year high.
With fewer large funding rounds, 2025 raised a total of $13 billion across 1,250 deals in 2025, 10 per cent lower than 2024. It was higher than $11.3 billion in 2023, though quite smaller compared to $38 billion in 2021, as per the data of TheKredible.
After a strong start at $1.76 billion in January, it dropped below $1 billion in seven months over the course of the year. Funding recovered in September at $1.22 billion and reached another high in October at $1.73 billion.
Zepto saw the biggest investment of $450 million, followed by Impetus Technologies at $350 million and Innovaccer at $275 million. Merger and acquisition activity in 2025 was led by consumer, SaaS, and logistics-focused transactions. HUL’s $350 million acquisition of Minimalist emerged as the largest deal of the year, followed by Everstone’s $200 million purchase of Wingify.
Bengaluru accounted for 46 per cent of the deal value with $6.03 billion across 477 deals. Delhi-NCR ranked second with 301 deals and $2.57 billion, followed by Mumbai, which recorded 182 deals and $2.26 billion.
Fintech emerged as the largest sector by funding in 2025, with $2.89 billion raised across 154 deals. E-commerce followed with 176 deals and $1.88 billion.
Layoffs in 2025 were largely concentrated in consumer internet, gaming, and AI-led startups. Overall, 24 companies laid off around 3,800 employees during the year. In comparison, layoffs affected about 4,700 employees in 2024, 24,000 in 2023, and 20,000 in 2022. Significant workforce reductions were reported at Ola Electric, Zomato, Head Digital Works, VerSe, Zepto, and Junglee Games.
Mobility player BluSmart shut operations in April, while Dunzo, once a key quick commerce platform, exited earlier in January. The Good Glamm Group in e-commerce and Hike in social messaging also shut shop. In total, 28 startups shut operations in 2025, a sharp rise compared to 17 shutdowns in 2024 and 15 in 2023.
