5 Big Indian startups that busted in 2025: Hike, BluSmart among them

New Delhi (The Uttam Hindu): The year 2025 has proved to be a mixed bag for the Indian startup ecosystem. While Swiggy and other new companies made a strong presence in the stock market through IPOs, on the other hand, there were many famous startups that had to shut down their shutters forever. According to a recent report by Inc42, around 25 Indian startups closed their operations in the year 2025. The main reasons behind the downfall of these companies were a severe lack of funding, regulatory strictness and changing market trends. These include five big names like Hike, BluSmart and Ashneer Grover's Crickpay, whose closure is being considered a big blow to the entire sector.

Hike: The dream of becoming the Indian WhatsApp is shattered

Hike is the biggest and most surprising name on the list of companies that have shut down. Launched in 2012, this messaging app was once considered a local alternative to WhatsApp and had surpassed 100 million users. However, the company later shifted its focus from messaging to gaming. Strict regulations and regulatory uncertainty surrounding real-money gaming in India led to significant losses, resulting in Hike's complete shutdown in September 2025.

BluSmart : Controversies and financial irregularities sank the ship

April 2025 proved to be a disastrous month for BluSmart, an electric cab service provider. This startup suddenly found itself in the news for all the wrong reasons. Management suspended rides after an investigation into financial irregularities began against the company's co-founder. Within a few months, insolvency proceedings began against the company. The situation worsened to the point where employees were left without salaries and users' money was stuck in their wallets. It's worth noting that BluSmart was once a tough competitor to Uber in the EV ride-hailing segment.

Otipy : Lack of funding and the impact of quick commerce

Farm-to-consumer grocery startup Otipy suffered a funding drought. The company shut down its operations in May 2025. Increasing competition from fast-track commerce companies (like Blinkit and Zepto) and a lack of new funding meant the company couldn't survive. The shutdown resulted in the loss of jobs for over 300 employees and the loss of millions of rupees to vendors.

Crickpe : 28% GST spoils the game

Crickpay, the first product of the third unicorn, a fantasy cricket platform owned by former BharatPe co-founder Ashneer Grover, also failed to survive. It was officially announced to shut down in February 2025, although operations had ceased at the end of 2024. The closure was due to the government imposing a 28% GST on online gaming and classifying it as gambling. Grover commented on this, saying he disliked the gambling connection to the gaming space.

Beepkart : No momentum even after investment

Used two-wheeler marketplace Beepkart was a rapidly growing startup, but it had to close its doors in August 2025. The company had raised $18 million in funding, but the lack of existing companies and investment hindered its growth. Market saturation prevented the company from making its business model sustainable.

Ideas alone won't do the job

Overall, the year 2025 has made it clear that a good idea and initial funding are not enough to run a startup. Without strong regulatory understanding, sustainable business models, and reliable corporate governance, it is becoming increasingly difficult for startups to survive in the market. These events serve as a lesson for new entrepreneurs.