Startup closures in India have fallen to a five-year low in 2025, with 733 companies shutting down, an 81% decrease from 2024's nearly 4,000 closures. This marks the lowest shutdown count since 2020, signaling a potential recovery and maturation of the startup ecosystem. While funding has stabilized, the number of funding rounds has significantly decreased, indicating investors are more selective, prioritizing quality over quantity. Enterprise Applications, Retail, and Edtech have seen the highest number of shutdowns over the past three years.