5,776 Ecommerce startups have shutdown until October 2025

Yes, you read that right.

Of the total 11,223 startups that have shut down in India during 2025, 51% of them came from E-commerce, Quick Commerce and related businesses. The data has been compiled by Traxn, a portal that tracks startups.

According to layoffs.fyi, Hike, Beepkart, Astra, Ohm Mobility, Code Parrot, Blip, Subtl AI, Otipy, Log 9 Material, and ANS Commerce were some of the prominent startups that collapsed this year.

Neha Singh, Co-Founder, Tracxn, noted, “The highest number of exits were observed in B2C e-commerce (5,776), followed by enterprise software (4,174) and SaaS (2,785),”

“This trend highlights the challenges startups face in achieving product-market fit and building sustainable business models.

High customer acquisition costs, limited revenue visibility, and funding constraints have been key pain points, particularly for consumer-facing businesses”, she added.

E-commerce, Quick Commerce and related start-ups have seen a lot of traction over the last few years, especially since the Covid-19 crisis.

However, keeping up with thee momentum and fast changing dynamics have been a huge challenge for start-ups and entrepreneurs and existing Investors alike.

Editor’s Note

Online Retail certainly looks more glamorous than it is. Several thousand young and seasoned professionals in India have either quit their full time jobs or have started off from scratch across various domains and verticals of e-commerce since the 2000s.

But for a handful of entrepreneurs, most of them have exited with financial losses as well. Funding has not been the challenge, rather it is the market fitment and the timing of raising investment that matters.

Add to it, the “right connections” that come at the right time really help entrepreneurs to raise capital.

One of the reasons why several start-ups who have already raised funds fold up, is also because they are unable to raise money when the going is good – rather it isn’t so, as perceived by potential Investors.

For the record, the Indian arm of Amazon and India’s original poster boys of e-commerce, Flipkart and Big Basket are yet to report profits in over a decade or more!