Call it downsizing or, more modestly, rightsizing, a one-size-fits-all approach of homegrown tech startups rendered more than 9,500 people jobless in 2025 alone. 

This was higher than the 9,000 layoffs recorded in 2024 and lower than 17,000 the year before, when the world was trying to wriggle out of the Covid-19 blues. The figure for 2025 stands at a whopping 1 Mn in the US, shooting up 65% over the previous year.

Standing halfway through the decade, what seems most certain is an air of uncertainty. Businesses skidded into an abyss of uncertainty when the pandemic hit the world in 2020. As the global economy struggled to revive, automation and artificial intelligence drove companies to whittle down to size their workforce, sending thousands into a state of crisis.  

In startups, roles that were once considered essential – from operations and customer support to marketing and product research – are increasingly being replaced or reduced by tech-driven efficiencies. As investors push startups to prioritise profitability over headcount growth, workers are often the first to bear the brunt. 

The number of startups giving out pink slips to employees reached 44 as automation gathered pace, regulatory noose tightened, and compliance pressures increased in 2025.

Around 37% of startups carried out layoffs in 2025 as they shut down, with real-money gaming companies making up a substantial chunk of this after the government slapped a ban on them. 

Gaming startups like GamesKraft, Head Digital Works, PokerBaazi, Games 24×7, Mobile Premier League, Zupee and Hike resorted to layoffs and shutdowns as their core business model was rendered non-viable after the ban. More than 2 Lakh direct and indirect jobs linked to real-money gaming were affected by the ruling. 

Nearly 46% of the startups had to restructure their operations as in many cases the existing cost structures and business models are no longer sustainable in the face of slowing demand, funding constraints and mounting operational expenses.

As 2025 draws to a close, we have compiled a list of Indian startups that carried out large-scale layoffs this year. The list is part of the 12th edition of Inc42’s annual ‘Year in Review’ series – 2025 In Review.

Editor’s Note: This is not a ranking of any kind, and the startups have been listed in descending order as per the no. of employees laid off.

Ola Electric Lays Off 1,000 Employees To Cut Costs

Listed EV maker Ola Electric laid off more than 1,000 employees and contract workers as part of a cost-cutting push to address its financial challenges, according to multiple reports published in March. 

The planned job cuts were expected to impact multiple functions, including procurement, customer service, and charging infrastructure. The EV maker let go of around 500 employees in November 2024.

Ola Electric continues to navigate intense competition in the two-wheeler EV segment, regulatory hurdles, and mounting financial pressure. It managed to trim its consolidated net loss by over 15% to INR 418 Cr in Q2 of FY26 from INR 495 Cr in Q2 of FY25.

BluSmart Leaves 800 Jobless Overnight 

A crackdown on Gensol Engineering, which was the primary EV lessor and a sister company of BluSmart, by SEBI and enforcement agencies eventually led the ride-hailing startup to a screeching halt.  

When BluSmart suspended operations in April, more than 10,000 drivers and 800 employees were left without jobs overnight. The drivers have since been demanding a severance pay, clearer communication, and even government intervention to help them return to work. 

“It was a kick in the gut for at least 50,000 people,” one BluSmart driver told Inc42 in May on the sidelines of a protest in Pitampura. “The founders are the culprits, but we are the ones to pay the price.” 

The regulator and the investigating agencies are investigating and prosecuting the founders for alleged misuse of funds, forgery, and market manipulation.

Eternal Axes Nearly 600 Customer Support Jobs 

Eternal cut around 500–600 customer support jobs, citing “non-performance”. Some of the affected employees say they were fired without any notice, as per multiple reports surfaced in April.

The roles were filled under Zomato’s ZAAP programme, which was meant to bring in junior staff for its support operations. The food delivery app is increasingly relying on AI, its Nugget platform now handles a large volume of customer interactions, reducing the need for human agents.

The layoffs are also being driven by a slowdown in Zomato’s core food-delivery business, and losses in its quick commerce arm, Blinkit.

Ecom Express Lays Off Around 500 People 

Logistics startup Ecom Express slashed around 500 jobs, shut down more than 1,000 delivery centres and 20 major hubs in January. It was reported by LiveMint that the layoffs were part of a cost-cutting push as the startup lost its major client, Meesho, after it built its own logistics arm.

Ecom Express was once valued at $850 Mn and gearing up for a public listing but earlier this year it was acquired by rival Delhivery for just $165 Mn, with an 80% value erosion. 

Ecom Express secured the go-ahead from the Competition Commission of India (CCI) for a 99.44% stake sale to Delhivery in June. The deal increased logistics major Delhivery’s market share by 25%, according to estimates.

Head Digital Works Cuts Manpower After RMG Ban

Days after the ban on real-money gaming (RMG), Head Digital Works, the parent of gaming platform A23 said in September that it would lay off about 500 employees, or nearly two-thirds of its workforce. 

Head Digital Works ran real-money gaming sites like A23 Rummy, A23 Poker, and Cricket.com.

The job-cut call came after the Promotion and Regulation of Online Gaming Act, 2025 got the President’s assent on August 22 and brought an abrupt end to the RMG sector. CEO Siddharth Sharma said the company will pay severance three months for most, more for long-tenure staff and weigh business prospects outside real-money games.

SaaS Unicorn Gupshup Slashes 500 Jobs

Conversational AI unicorn Gupshup laid off nearly 500 staffers between December 2024 and April 2025 to push for efficiency and profitability. Many of these employees had joined through acquisitions made in 2021–22, though Gupshup said the layoffs were not targeted at these teams.

The startup said the restructuring was needed to support its long-term growth and strengthen its position in AI-driven customer engagement.

Gupshup now says it is profitable and does not plan further layoffs. The company is also weighing an IPO, but has yet to move its headquarters from the US back to India.

Builder AI Collapse Leaves Team In Limbo

Microsoft-backed Builder.ai, once valued as an AI unicorn, is now facing insolvency in the US after a series of allegations of faking its AI technology. 

The startup, earlier known as Engineer.ai, claimed to offer a no-code platform that used AI to build software, but it is now accused of relying largely on human workers behind the scene, instead of automated systems. Builder is also being accused of inflating its revenue in order to lure investors. 

As the company collapsed, the team was rendered jobless, CEO Sachin Dev Duggal Ratia said during a town hall. Sources said that around 450 employees lost their jobs, and there is no clarity on whether they were given severance pay. 

Zepto Cafe On Pause, 400 Jobs In The Lurch

Zepto’s quick-food arm, Zepto Cafe, temporarily shut operations at 44 outlets in smaller North Indian cities such as Agra, Chandigarh, Meerut, Mohali, and Amritsar as supply-chain issues escalated. 

The move has impacted more than 400 workers, ET Now reported. Zepto expects these outlets to reopen by the end of the next quarter.

As part of its cost-cutting efforts, Zepto also plans to bring down staffing levels at each cafe from about nine workers to seven or eight.

Gameskraft Terminates 400 After Gaming Ban

Bengaluru-based RMG startup behind platforms like RummyCulture, Playship, RummyPrime and LudoCulture, Gameskraft, laid off more than 400 workers in a major restructuring after the government slapped the ban on real-money gaming. 

“The decision was driven by business continuity considerations, following the implementation of the law, which triggered a fundamental shift in the operating environment for real money gaming companies,” the company said in a statement. 

The startup has offered a severance package, including one month’s pay per year of service (capped at three months), notice pay, leave encashment, extended health insurance, placement assistance and waiving of certain recoveries. As per LinkedIn, Grameskraft had about 600 employees.

Games24x7 Hits Layoff Route Twice This Year

The ban on real-money gaming pushed Games24x7 to carry out a second round of downsizing in September after the RMG ban disrupted the core business. The ban came as a blow to the company while it was grappling with shrinking revenues for high GST rates that had forced it to cut down 180 jobs in May.  

The company ran platforms like RummyCircle and My11Circle. Games 24×7 insiders said that there will be terminations across departments. 

Games24x7 says the ban forced it to suspend money-based games and pivot towards free-to-play formats, but the regulatory shift has clearly hit its finances hard.

Porter Hands Out Pink Slips To 350 Staffers 

Bengaluru-based logistics startup Porter laid off over 350 employees, nearly 18% of its workforce, in November after it merged the truck and two-wheeler verticals to streamline operations and remove overlapping roles. 

Porter began its journey in 2014 to offer on-demand intra-city logistics such as mini-truck services, packers and movers, courier and enterprise goods movement. 

The layoff move appears to be aimed at cutting costs, simplifying structure, and readying the company for a possible public listing.

VerSe Innovation Lets Go Of 350 Workers

VerSe Innovation, the parent of DailyHunt and Josh, laid off about 350 employees in May as part of a workforce realignment exercise as it planned to invest more in AI, automate manual work, and improve efficiency to support long-term growth. 

The layoffs came after reports that Deloitte flagged weaknesses in VerSe Innovation’s internal financial controls in its FY24 audit. In FY24, the company more than halved its net loss to INR 814.8 Cr from INR 1,878.4 Cr the year before. 

Its operating revenue too fell 8.8% to INR 954.7 Cr from INR 1,046.8 Cr in FY23. 

VerSe had laid off about 150 employees in November 2022 and 50-70 more in 2024 in the face of monetisation challenges.

Junglee Games Parent Flutter Fires 350 

Junglee Games, known for its online rummy platform Junglee Rummy, laid off 350 employees from its offices in Delhi and Bengaluru. 

The company plans to redeploy its existing manpower of roughly 600 as part of its restructuring exercise for India. It also plans to shift to a free-to-play model, departing from its previously high-growth real-money format. 

The retained employees will be given roles at Flutter’s Hyderabad-based GCC or will be moved to support the free-to-play model. Junglee Games is exploring ways to monetise their existing games without a cash-in or cash-out concept.

Otipy Shuts Operations Amid Funds Crunch

Otipy, a farm-to-fork grocery delivery startup from Delhi-NCR, backed by WestBridge Capital, downed shutters in May after running out of funds. About 300 employees lost their jobs overnight with many of them not having received their salaries for more than a month.

The shutdown also left Otipy saddled with dues to vendors. The company said it would return the wallet balances of its users in 60-90 days.

Launched in 2020, Otipy had raised $44 Mn in total funding. In FY24, it posted an operating revenue of INR 160 Cr, up 68% from INR 95 Cr the previous year, and reduced its losses to INR 52 Cr from INR 72 Cr in FY23.

MPL Lowers Headcount After Gaming Blow

Gaming unicorn MPL decided to cut around 60% of its India workforce after the government banned online real-money games. The company employs roughly 500–600 people in India.

In an internal email, cofounder Sai Srinivas said India accounted for half of MPL’s total revenue, which will now fall to zero. In FY24, MPL earned INR 879.5 Cr from India, while its Singapore unit M-League generated INR 1,099 Cr.

Launched in 2018, MPL offered fantasy sports, casual, puzzle and board games in both free and paid formats. The startup has raised more than $375 Mn from investors such as Peak XV and MDI Ventures.

MPL has shut all real-money gaming products in India, but will continue operating in international markets.

Zepto Automation Costs Hundreds Of Jobs

Zepto went on a restructuring overdrive as it aggressively pushed for automation. The rejig cost  hundreds of jobs in a span of six months from April. According to sources, more than 500 employees were retrenched. 

In October, around 200 more were laid off, with most of them being off-the-roll employees, they said. 

Most of the retrenched employees were involved in ground operations, customer support, invoice payments, replenishment operations, Zepto Cafe, and the expansion team. 

“We are building a culture of cost excellence regardless of how large our balance sheet is. Over the past six months, we have periodically built in-house software to automate operational work for cost excellence. Most of these tasks are performed by off-the-roll staff (invoice processing, replenishment, real estate management etc.),” a Zepto spokesperson said.

PokerBaazi Prunes Manpower After RMG Ban

Nazara-backed Moonshine Technology, which runs PokerBaazi, was planning to halve its manpower strength days after real-money games were forbidden. 

A report by Storyboard18 said that the creator of PokerBaazi had sacked 200 employees. 

Founded in 2014, Moonshine ran PokerBaazi along with CardBaazi, which offered rummy and other card games. Listed gaming major Nazara also holds 46.07% in the company with INR 805 Cr invested in it.

CARS24 Rejig Slams Brakes On 200 Jobs 

Used car marketplace CARS24 laid off 200 to 250 employees across its product and technology teams as part of cost-cutting efforts. 

CEO and founder Vikram Chopra, at the time of layoffs, said the decision was difficult but necessary due to overhiring. “We’ve always believed in moving fast. We’ve always pushed to build big. But the hard truth is: speed without enough clarity is expensive. And when the math doesn’t add up, it is on us to reset.” 

CARS24 raised $450 Mn in December 2021 from investors like SoftBank and Tencent that valued it at $3.3 Bn. While its revenue grew 25% to INR 6,917 Cr in FY24, its net loss widened 7% to INR 498.4 Cr from INR 467.7 Cr a year back.

The layoffs came in the same month when CARS24 competitor Spinny raised $131 Mn in a mix of primary and secondary transactions, intensifying competition in the used car marketplace.

 

Zupee Nixes 170 Staffers After Gaming Law

Delhi NCR-based gaming startup Zupee laid off around 170 employees, or almost 30% of its workforce, after the government banned real-money games, in blow to its core revenue source.

Zupee had built its business around online real-money games, offering quick cash-based games as well as casual and board games. The move to cut jobs came after the passage of the Promotion and Regulation of Online Gaming Act, 2025 in August.

While Zupee began restructuring after the ban, it said it would continue to offer free-to-play social games and entertainment content.

BeepKart Beeps Jobloss Alert For Team

Bengaluru-based two-wheeler marketplace BeepKart shut operations in August, laying off its 150-member team. The startup, backed by Stellaris and Chiratae, raised $19.5 Mn, including $6.5 Mn, until April 2024.

The company had earlier closed its Chennai operations and cut the staff in multiple rounds, but it finally decided to wind down. The founders are now in talks to sell assets and return the remaining capital to investors.

While the startup did not file its FY25 numbers yet, it had reported an INR 100 Cr revenue in FY24, with its net loss doubled to INR 66 Cr.

Clear AI Drive Turns Taxing For Employees

Clear, formerly ClearTax, laid off 130–140 employees, or roughly 16% of its workforce, in a fresh round of job cuts. The fintech SaaS startup helps individuals and businesses with tax filing, compliance, invoicing, GST, and other financial services. 

The layoffs follow Clear’s push for its AI-based offering, ClearTax AI, aiming to automate many manual tasks.

Despite recent growth, the company’s operating revenue nearly doubled last year and losses shrank significantly, the company said the layoffs were part of a “strategic organisational restructuring” to reshape teams and align with changing business needs.

Flipkart Shuts Down ANS Commerce 

In February 2025, Flipkart decided to shut down ANS Commerce, a SaaS platform it acquired in 2022 to strengthen its D2C ecommerce services. ANS Commerce helped brands create online stores, manage marketplace listings, and handle warehousing and fulfillment. 

The platform was founded in 2017 and supported several well-known brands.

Flipkart said the decision was made after careful review and assured that it would support the affected employees by offering internal job opportunities, severance packages, and outplacement services. 

ANS Commerce had around 110 employees. The company reported a 40% on-year increase in its revenue to INR 54 Cr in FY24, while its net losses deepened 27.1% to INR 73.8 Cr.

Astra Closes Operations, Leaves 106 Stranded 

The SaaS startup, backed by Aravind Srinivas, has shut down operations, leaving 106 employees in the lurch, as it stuttered in an increasingly crowded market for AI agents.

Astra began its journey in 2023 with a platform aimed at automating up to 80% of an account executive’s tasks — promising to handle workflows like sales analytics, deal execution and integration with tools such as Salesforce, Slack, Google Drive and contract-management platforms.

The management decided to close down the business because the founders reportedly disagreed over the pace of growth, and the company struggled to earn trust from large enterprise clients. Though Astra had secured funding and even two enterprise customers during its beta phase, it never managed to scale beyond that – ultimately leading to the decision to wind down.

Ola Krutrim Turns To Layoffs Yet Again 

Krutrim, an AI startup founded by Bhavish Aggarwal, laid off more than 100 employees in a second round of job cuts. In the first round in June, around a dozen were let go of, as per some reports. 

Krutrim described the job cuts as part of a “strategic realignment” to build leaner, more efficient team.

The company had been building a language-focussed AI assistant, called Kruti, to support multiple Indian languages and provide voice-first AI services.

The layoffs mostly hit the company’s linguistics team, many of whom had been hired only months earlier. According to reports, the cuts came because Kruti’s training phase was nearly complete, reducing the need for a large human linguistics workforce.

Zopper Fires 100 From Tech, Product Wings

Insurance-focussed SaaS startup Zopper laid off around 100 employees across multiple rounds of retrenchments since the start of the year.

In the latest round, about 50 jobs from the tech and product teams were axed, following an earlier reduction of 20 jobs in these departments. Earlier in the year, Zopper also shed its entire 40-member insurance team, citing the need for cost control. 

Founded in 2011, Zopper provides APIs to insurance firms to help distribute policies through partners like ecommerce marketplaces. It has raised $121 Mn in funding so far. While its operating revenue surged 170% to INR 438.7 Cr in FY24 from INR 162.4 Cr a year back, its net losses widened 144% to INR 115.2 Cr from INR 47.2 Cr.

Good Glamm Group On Silent Downsizing

The Good Glamm Group, once a high‑flying content‑to‑commerce startup, laid off around 150 employees in a round of silent layoffs amid deepening financial troubles at the start of the year, as per a Storyboard18 report.

The company offers beauty and personal care products with digital‑media and influencer‑driven content. It acquired a number of brands and platforms over the years.

The layoffs come as Good Glamm struggled with mounting losses, heavy debt, delayed salaries and shrinking investor confidence. With the funds tap running dry and lenders tightening control, even enforcing asset‑wise sales, instead of a group‑wide rescue, the company appears to be winding down its earlier ambitions.

Simpl Slashes Up To 100 After RBI Whip

The Bengaluru-based ‘buy now, pay later’ (BNPL) startup has laid off 80–100 employees following a directive from Reserve Bank of India that forced it to suspend its payments operations.

Simpl built a business allowing customers to buy goods and pay later, partnering with merchants across India.

The layoffs come as a direct result of the regulatory blow when the RBI ordered it to stop its payment, clearing and settlement services because it was reportedly operating without proper authorisation. With its core offering halted, the company said this restructuring was needed to conserve capital.

Pocket FM Hands Out Pink Slips Yet Again

Audio streaming platform Pocket FM laid off about 75 employees as part of a restructuring move, it said in January.

At the time, the company said this was necessary to ensure its long-term sustainability and to become more efficient and profitable. Reports suggested that the actual number of affected staff could be higher. The tech department was expected to be the hit hardest.

This was the third round of layoff at the entertainment startup in less than a year. In October 2024, it let go of 50 employees, and before that, it laid off around 200 US-based writers after 11 contractual workers there sued the company offering audio series in various languages and genres. 

The startup saw its revenue from operations surge 496% to INR 1,051.97 Cr in FY24 from INR 176.36 Cr a year ago. It also trimmed its losses by 21% to INR 165 Cr from INR 209 Cr.

Bobble AI Reshuffle Blows 50 Jobs 

Bobble AI, a Gurugram-based startup working on AI-powered communication and data-intelligence startup, has laid off about 50 employees following a recent organisational redesign. 

The startup known for its Indic keyboard supporting over 120 languages along with personalised GIFs, stickers and integrations with apps like WhatsApp and Facebook has said the cuts were linked to its effort to streamline projects, processes and people to build a leaner, more resilient company as it sought to weather the funding slowdown.

While Bobble AI posted a 25% growth in revenue to INR 37.67 Cr in FY24, its losses widened 40% to INR 60.88 Cr.

Blume-Backed Zoplar Downs Shutters

Zoplar, a medical equipment procurement startup backed by Blume Ventures, shut operations a month after raising $3.4 Mn in funding in January 2025. 

The startup helped small and medium-size hospitals buy refurbished medical equipment. It had to close down in February after the Central Drugs Standard Control Organisation (CDSCO) said imports of second-hand medical devices are not allowed. The startup decided to shut operations and return the money to its investors. 

Zoplar worked with over 300 hospitals and had raised a total of $5.1good gl Mn since it began in 2022. It had a workforce of about 45 employees which were affected by the shutdown.

Sharechat Trims Manpower To Cut Costs 

Google-backed vernacular social-media platform ShareChat handed out pink slips an additional 5% of its workforce, which translates to 30-40 people, as part of a broader cost-cutting move. 

ShareChat offers social media and video-sharing services via its parent Mohalla Tech, with content and livestreaming in multiple Indian languages.

The layoffs come as the company works to trim its overall headcount to about 500 by March, down from 650–700 as of late 2024. According to the company, the cuts are not part of a one-time cost-reduction drive but are tied to its regular performance review cycle affecting those rated lowest on performance.

BharatAgri Draws Curtains On Operations 

BharatAgri shut down its operations after failing to raise fresh funds to sustain itself. At the time of closure, the agritech startup had about 37 employees. The founders said they would return the leftover capital to investors and offer severance to staff. 

Founded in 2017, the agritech startup offered AI-powered farming services giving agronomy advice to farmers and selling inputs like seeds, fertiliser, farming equipment and crop kits through an e-commerce platform.

Despite showing growth, its operating revenue rose sharply in FY24, and it reduced losses compared to earlier years, the startup struggled with high overhead costs. Investors reportedly felt its total potential market was too small to justify further funding.

GenWise Lowers Headcount In Funds Crunch

GenWise, an app-based platform aimed at senior citizens, laid off about 20% of its workforce, roughly 15 to 20 people, across departments such as technology, marketing, product, and operations. 

The Z47-backed startup offers community features for older adults, including social connections, activities, and emotional or mental-health support.

GenWise has reportedly seen costs rise sharply after integrating UPI payments on its app, while growth in user activity remained modest, creating a widening gap between spending and revenue that forced the firm to cut jobs.

CodeParrot Fails To Decode Revenue Growth

Y Combinator-backed CodeParrot shut down operations around middle of the year after it burned down its initial investments too fast and failed to attract fresh funds, leaving the entire squad jobless. 

CodeParrot was launched in 2022 to use AI to convert design files (like those from Figma) or screenshots into production-ready code (React, Flutter or HTML). Even after switching strategies several times, the startup only managed to reach a modest monthly recurring revenue of  $1,500 – far below what it needed to sustain operations.

Blip Bows Out Within A Year Of Launch

Fast‑fashion quick‑commerce startup Blip called it quits barely a year after its launch. As per LinkedIn, its team size was around 2-10.

Blip began with the idea of offering 30‑minute delivery of fashion apparel in Bengaluru — promising quick doorstep delivery of clothes and accessories.

The shutdown happened because the company ran out of capital. A cofounder said the bootstrapped startup struggled with limited working capital and its execution and go‑to‑market strategy failed to scale efficiently.

Subtl AI Shuts Shop As Funds Go Scarce 

Subtl.ai was a GenAI‑focused enterprise startup launched in 2019 and had 2-10 employees, as per its LinkedIn page. 

The startup built ‘knowledge agents’ for enterprises such as tools meant to let companies raise queries on internal documents, databases and SOPs using natural language, and get answers or have routine tasks like ticket management, form‑filling or information look‑ups automated.

Despite an initial funding of about $200,000 (around INR 1.8 Cr) from angel investors, Subtl failed to raise any further capital and decided to shut shop around middle of 2025. Cofounder and CEO Vishnu Ramesh said that investor interest did not turn into committed funding, which made continuing operations impossible. 

The startup struggled because although it had a workable product and some early clients, it could not convert that into sustainable revenue or scale.

O’Be Cocktails Fails In Race With Cheap Brews

Direct‑to‑consumer alco‑beverage startup O’Be Cocktails sold ready‑to‑drink cocktails across multiple states and in Bhutan, claiming to offer a premium, convenient cocktail experience through a network of distributors and retail outlets.

Despite backing from investors and two funding rounds in 2021 and 2023, the company shut down in March. Its founder, Nitesh Prakash, said the Indian alcohol‑beverage industry had become “commoditised” where buyers prioritised lower prices over premium experience – a mismatch with O’Be’s vision. 

The startup had attempted for more than a year to find a buyer and salvage operations, but the efforts failed.

Zing To Pivot Business As Operations Failed 

Zing began in late 2024 as a quick‑food delivery startup based in Gurgaon, promising freshly cooked meals delivered in 10 minutes. But, by late 2025, Zing shut down its food‑delivery service. 

The founders say they had overestimated the demand since many customers preferred ordering from their favourite restaurants, instead of a quick‑delivery kitchen.

The funding crisis too played a role. Zing failed to raise a fresh round after an angel investment and lacked the capital needed to scale. Rather than close entirely, Zing plans to pivot to delivering groceries, fresh produce and essentials by partnering with large retail and department stores.

Plus Gold Logs Out Of Core Operations

Plus Gold, a fintech startup that offered digital‑gold savings and investments, shut down its core operations as the funds flow dried up. 

Set up in 2022, Plus Gold let users buy gold digitally in small amounts or through monthly savings plans (SIPs), and redeem their savings for cash or jewellery. 

Despite raising about  $1.2 Mn from VC firms and angel investors and seeing early user interest, high operating costs, capital‑intensive business structure and weak unit economics made it unsustainable.

According to its founders, the startup transferred the Plus Gold app and customer accounts to another digital‑gold provider so that users could still access their holdings.

Niro Calls It Quits Under Regulatory Pressure 

Bengaluru-based fintech startup Niro helped consumer‑internet companies embed credit solutions for their users. In other words, it enabled online platforms to offer loans through bank or NBFC partners.

Despite raising around $20 Mn in funding and disbursing approximately $200 Mn in loans through more than 30 partnerships, Niro shut down operations in late 2025. The founders said the closure was driven by a “perfect storm”, tightening regulatory pressure on personal lending in India, worsening credit quality among borrowers, and a lack of fresh capital.

Niro’s embedded‑credit idea saw early scale and investment, but regulatory headwinds, funding shortage and credit‑related stress made the business unsustainable.

Hike Pulls The Plug After Gaming Ban

Hike, the once‑familiar messaging‑turned‑gaming startup, has shut down all operations globally after the Indian government slapped a blanket ban on real-money gaming. 

Hike started off as a messaging app in 2012, aiming to rival the likes of WhatsApp and, at one point, its user base ran into millions. When its messaging business stalled, the company pivoted, shelving the app in 2021, and shifted focus to online gaming (on a platform called Rush) and Web3‑based play‑to‑earn offerings. 

The most dreaded blow came in 2025 when India outlawed online real money games. With the home market closed and global expansion calling for large-scale reset, Hike’s founder Kavin Bharti Mittal said it no longer made sense to invest further.

Log9 Materials Lands Into Insolvency Suit

Log9 Materials tried to build advanced batteries and cells for electric vehicles and was once regarded as one of India’s promising battery‑tech firms.

Over the years, the Bengaluru‑based deeptech startup raised substantial funding – running up to tens of millions of dollars – from investors, built a cell‑manufacturing plant and promoted itself as a homegrown alternative to imported EV battery tech. 

But the core technology failed to deliver at scale. Its chosen battery chemistry proved expensive and less competitive as cheaper, more efficient alternatives flooded the market. To stay afloat, Log9 shifted to a leasing‑and‑battery‑pack business for EV fleet operators. This boosted the topline, but couldn’t hide a crumbling bottomline and mounting debt.

As financial pressure mounted, the company laid off most of its workforce, shut multiple facilities across India, lost a cofounder, and began selling assets. Recently, the company was admitted into insolvency proceedings after defaulting on loan repayments.

Probo Ends India Sojourn After RMG Shock

Probo was an opinion‑trading platform where users could place their yes-or-no bets on real‑world events from polity to economy to social interest issues, effectively operating like a real‑money gaming app.

In August 2025, after the RMG ban (including opinion trading and similar platforms), Probo suspended all recharge and paid‑play activities, asked users to withdraw their funds, and shut down its operations in India.  

The company also faced legal troubles with raids by the Enforcement Directorate (ED), freezing of company assets of INR 284.5 Cr, and multiple FIRs accusing it of gambling and money laundering under relevant laws.

Ohm Mobility Stutters On Growth Hurdles

Ohm Mobility aimed to help EV fleet operators secure financing by connecting them with banks and lenders, using data from vehicles (IoT/telematics) to assess risk.

Over time, the company tried to pivot, rebranding itself as Ohm Daily and attempting to offer financial services and micro‑loans to gig workers and mobility‑sector professionals such as auto‑rickshaw drivers.

Despite raising around INR 5 Cr from early‑stage backers like Antler India, Blume Ventures and others, Ohm Mobility was unable to scale any of its business models successfully. In July 2025, the founders announced they were winding down operations, admitting that none of the pivots yielded a sustainable and scalable model.

[Edited by Kumar Chatterjee]