From Hike to BluSmart, these 5 major Indian startups shut down in 2025

The year 2025 proved to be a year of both hope and caution for the Indian startup ecosystem. While some new companies made a strong entry into the market through IPOs, several well-known startups had to permanently shut down. According to an Inc42 report, approximately 25 Indian startups closed their businesses in 2025. Lack of funding, regulatory strictures, and changing market trends were major reasons for their downfall. Among them are five big names like Hike, BluSmart, Otipy, Beepkart, and Crickpe, whose closures proved to be a shock to the entire sector.

1. Hike

Hike is the most prominent name on this list. Launched in 2012, this messaging app was once considered a homegrown alternative to WhatsApp and had reached over 100 million users. However, the company later shifted from messaging to gaming. But due to strict regulations and regulatory uncertainty surrounding real-money gaming in India, Hike had to completely shut down in September 2025.

2. BluSmart

BluSmart suddenly came into the spotlight in April 2025, but for the wrong reasons. After an investigation into financial irregularities involving the co-founder began, the company suspended its rides. Within a few months, insolvency proceedings were initiated. Employees did not receive their salaries, and users’ money was stuck in their wallets. BluSmart was giving tough competition to Uber in the electric vehicle ride-hailing segment.

3. Otipy

This farm-to-consumer grocery startup fell victim to a lack of funding. In May 2025, the company ceased operations. Due to increasing competition in quick commerce and the inability to raise new funding, more than 300 employees lost their jobs, and vendors’ crores of rupees were stuck. 4. Beepkart

Beepkart was a rapidly emerging player in the second-hand two-wheeler marketplace, but it shut down in August 2025. Despite securing $18 million in funding, market saturation and a lack of further investment halted its progress.

5. Crickpe

Crickpe was a fantasy cricket platform, the first product of Ashneer Grover’s third unicorn venture. News of its closure broke in February 2025, although operations had ceased at the end of 2024. The business was shut down due to the 28% GST and the perception of gaming as gambling. Grover stated that they did not like the association of gambling with the gaming space.

Overall, 2025 made it clear that ideas and funding alone are not enough. Without a strong understanding of regulations, a sustainable business model, and reliable governance, it is becoming increasingly difficult for startups to survive.