DPIIT Recognises 1,97,692 Startups Under Startup India Initiative

The Ministry of Commerce & Industry has confirmed that 1,97,692 entities have been recognised as startups by DPIIT as of October 31, 2025, as per PIB.  

Recognition is granted based on the criteria laid out in G.S.R. 127(E) dated 19 February 2019, which sets the rules for defining and validating a startup in India. 

Closure Data 

Data shared by the Ministry of Corporate Affairs on November 11, 2025, shows that 6,385 recognised startups have been marked as closed. These include entities dissolved or struck off.  

The government has stated that there is no noticeable rise in closures. When startups do shut down, the reasons generally relate to business model challenges, weak market demand, funding constraints, economic conditions, or the nature of the products and services they were building. 

Funding Framework Under Startup India 

3 schemes operate under the Startup India initiative: 

1. The Fund of Funds for Startups (FFS) has a ₹10,000 crore corpus managed by SIDBI. It invests indirectly by committing capital to SEBI-registered Alternative Investment Funds, which then support startups. Annual commitments and disbursements from 2023 to 2025 are listed in Annexure II.
2. The Startup India Seed Fund Scheme (SISFS), active since April 1, 2021, has a ₹945 crore corpus. It provides early-stage financial assistance through approved incubators. Funding approved and released for 2023–2025 appears in Annexure III.
3. The Credit Guarantee Scheme for Startups (CGSS) began on April 1, 2023. It supports collateral-free loans to startups, with guarantees issued by the National Credit Guarantee Trustee Company (NCGTC). Data on loan guarantees for 2023–2025 is detailed in Annexure-IV. 

Additional Information Reported to Parliament 

The state and Union Territory breakdown of closed startups is given in Annexure-I. All scheme-related figures were shared through a written reply in the Lok Sabha by the Minister of State for Commerce & Industry. 

Read More: Fireside Ventures Adds $253 Million to Fuel Growth in Indian Consumer Brands! 

Conclusion 

The latest update outlines recognition totals, closure counts, and the flow of funds across government schemes, offering a factual understanding of startup activity under the Startup India initiative up to October 2025. 

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