These shuttered startups spanned across sectors such as IT services (875), healthcare and lifesciences (553), edtech (491), agriculture (301), hardware (166), among others

Overall, the minister said that the country was home to more than 2.12 Lakh DPIIT-recognised startups at the end of January 2026

Prasada also said that 219 incubators have been selected under the SISFS, and a corpus of ₹945 Cr has been committed under the scheme

Minister of state (MoS) for commerce Jitin Prasada yesterday informed the Parliament that more than 6,700 Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups have shut shop, as of January 2026.

In a written reply before the Lok Sabha, Prasad said that 6,789 recognised startups have been categorised as closed or dissolved.

“Startup closures that occur are generally influenced by factors such as the viability of the business model, alignment with market demands, domestic and global economic conditions, the nature of products and services developed, the ability to attract funding, and other business specific considerations,” said the MoS.

These shuttered startups spanned across sectors such as IT services (875), healthcare and lifesciences (553), edtech (491), agriculture (301), hardware (166), among others.

Overall, the minister said that the country was home to more than 2.12 Lakh DPIIT-recognised startups at the end of January 2026.

In response to a separate question, Prasada said that 219 incubators were selected under the Startup India Seed Fund Scheme (SISFS) by January 2026. He added that a corpus of ₹575 Cr has been disbursed to these incubators under the scheme.

Further, the approved incubators have selected a total of 3,311 startups for support under the scheme. Established in April 2021 with an outlay of ₹945 Cr, the SISFS provides financial assistance to early-stage startups via incubators across multiple stages of development.

Under the fund of funds scheme (FFS), ₹12,362.70 Cr in gross commitments have been undertaken. Of this, ₹6,829.47 Cr has been disbursed to the selected alternative investment funds (AIFs).

It is pertinent to note that FFS was established in 2016 to unlock domestic capital for new-age tech ventures. The state-backed fund invests in AIFs, which then invest in startups.

Meanwhile, the Credit Guarantee Scheme for Startups (CGSS) has facilitated 348 loans to the tune of ₹925.9 Cr to startup borrowers as of January 2026. CGSS enables debt funding for startups through financial institutions by offering guarantees up to a specified limit against credit instruments.