A Sign of Stability India recorded fewer startup closures in 2025, compared to the previous year — signalling improving resilience and financial discipline among founders. However, the closure of known brands like Dunzo reinforces the importance of sustainable growth. What It Means for Food & D2C Founders Capital-intensive, high burn-rate models are becoming riskier. Instead, …
Fewer Indian Startups Shut Down as Market Conditions Improve
A Sign of Stability
India recorded fewer startup closures in 2025, compared to the previous year — signalling improving resilience and financial discipline among founders.
However, the closure of known brands like Dunzo reinforces the importance of sustainable growth.
What It Means for Food & D2C Founders
Capital-intensive, high burn-rate models are becoming riskier. Instead, investors now prefer companies with:
✔ strong cash flow
✔ repeat purchase behaviour
✔ realistic expansion plans
✔ loyal customer retention
Food brands with stable margins and recurring demand are better positioned to thrive.
The New Rule: Grow Smart
Indian startups are evolving from hype-driven scaling to real, measurable business fundamentals — a healthy shift for the ecosystem.
