India’s startup ecosystem, long hailed as the world’s third-largest and fastest-growing, is witnessing a dramatic correction. According to data accessed from official records and industry estimates, over 28,000 startups have shut down between 2023 and 2024 — a number that dwarfs the 2,300 closures recorded across 2019 to 2022.

This marks a 12x increase in shutdowns over the previous period and reflects the tightening grip of a prolonged funding winter, unsustainable burn models, and macroeconomic headwinds that have hit India’s new-age businesses hard.

📉 Year-wise Startup Closures

(Source: Financial Express, MCA records)

What’s Causing the Spike in Shutdowns?

Experts say the trend is a result of accumulated fragility in the system. Between 2020 and 2021, an avalanche of funding encouraged rapid expansion, but few startups focused on unit economics or real revenue models.

• Funding Slowdown: VC investments dropped by over 40% year-on-year after 2022, forcing cash-strapped startups to either pivot or perish.
• High Burn, Low Return: Business models in edtech, fintech, and quick commerce struggled to maintain customer retention and profitability.
• Regulatory Pushback: Segments like crypto, lending apps, and edtech saw increased oversight, creating compliance pressures many couldn’t absorb.
• Mass Layoffs & Consolidation: Over 24,000 layoffs were recorded in 2023 alone, as firms trimmed operations or merged for survival.

Notable Shutdowns

• Lido Learning: Once a rising edtech player, Lido shut operations in early 2022 due to a capital crunch.
• ZestMoney: A once-prominent BNPL fintech firm that folded in 2023 amid regulatory and operational challenges.
• Udayy: A pandemic-era live learning platform that exited the space in 2022.
• Anar: A B2B SME networking app that shuttered in 2023, citing scale limitations.

Even lesser-known startups in healthtech, crypto, and D2C struggled to maintain runway as customer acquisition costs surged and investor patience wore thin.

The Bright Side? A Market Correction

While the volume of closures is sobering, investors and analysts say the “cleanup” was overdue.

“This is a correction, not a collapse,” said a Bengaluru-based VC partner. “What we’re seeing now is a much-needed shift towards sustainable models, real value delivery, and lean operations.”

New startup launches also slowed in 2024 — with only 5,264 new ventures registered, compared to 9,600 annually during the pre-COVID years.

Conclusion

India’s startup dream is far from over — but it’s becoming more grounded. The age of free cash flow with no profits is ending, and the winners of the next decade will be those who combine ambition with accountability.

What began as whispers in hostel corridors has now escalated into a full-blown public health and policing concern. Southern states like Kerala, Karnataka, and Tamil Nadu are witnessing an alarming rise in synthetic drug abuse, with teenagers and young adults at the center of the crisis.

In a recent viral tweet, retired Air Marshal Anil Chopra flagged the disturbing trend: MDMA pills being sold in candy-like packaging, local supply chains delivering narcotics within hours, and children experimenting with highly addictive substances disguised as harmless fun.

The Drugs of Concern

• MDMA (Ecstasy): Marketed under names like Blue Butterfly, Tesla, or Superman, these designer drugs are being distributed in schools and colleges. Often colorful and candy-shaped, they lower inhibitions and increase the risk of dependence.
• Vapes Laced with THC or Synthetic Nicotine: Marketed as “flavored” devices, these are becoming a gateway for school-going children, especially in urban centers like Bengaluru and Kochi.
• LSD Tabs and Cocaine Microdoses: Previously seen only in high-end party circles, these are now available on encrypted Telegram groups with “guaranteed delivery” across Tier 2 cities.

The Modus Operandi: Fast, Digital, Hidden

Dealers are adapting. Using platforms like Instagram DMs, Telegram groups, and even food delivery-style drop services, narcotics are being dispatched faster than pizza. The buyers? School and college students with access to UPI wallets or crypto payments.

Ground Reports: What Police and Parents Are Saying

In Kerala, over 3,000 drug-related arrests were made in 2023 alone — a large number involving juveniles. A senior narcotics officer noted, “These aren’t hardened criminals. Many are 15–17-year-olds from decent families, trapped by peer pressure and tech-savvy peddlers.”

Parents are often unaware until too late. “We thought it was an energy drink or a protein supplement,” said one mother from Kozhikode whose son was hospitalized after consuming a THC-infused vape.

Why It’s Spreading

• Peer pressure + social media glamorization
• Easy access through quick delivery models
• Lack of awareness among parents and teachers
• Delayed regulatory enforcement on vaping and new synthetics

What’s Being Done

• Kerala and Tamil Nadu police have launched school-level awareness campaigns
• NCB and local enforcement are tracking crypto-linked drug deals
• New bans on flavored vape imports have been enforced, but black-market supply continues
• Mental health NGOs are stepping in with rehab and counseling support in colleges

Conclusion

This isn’t just a law-and-order issue — it’s a youth emergency. Unless parents, schools, governments, and tech platforms act in unison, a generation risks being lost to addiction dressed in glitter. The need of the hour is not just crackdowns but conversation, prevention, and support.

In the complex machinery of corporate governance, Independent Directors (IDs) serve as internal watchdogs — professionals appointed to a company’s board to ensure that decisions are made in the best interest of all stakeholders, not just promoters or majority shareholders.

But in recent years, India Inc. has witnessed a wave of high-profile board exits, regulatory penalties, and questionable oversight — all of which have raised one question: Are Independent Directors truly independent?

Who Is an Independent Director?

According to SEBI and the Companies Act, 2013, an Independent Director is someone who:

• Has no material or pecuniary relationship with the company
• Is not a promoter or relative of promoters
• Brings professional objectivity and neutral oversight

Public companies (especially listed ones) are required to appoint a minimum number of independent directors, usually one-third of the total board.

Key Responsibilities

• Corporate governance and compliance oversight
• Approval of related-party transactions
• Audit and risk management supervision
• Executive compensation and CEO evaluation
• Safeguarding minority shareholder interests

Why It Matters Now

In an era where corporate frauds, ESG lapses, and promoter overreach have come under scrutiny, the role of IDs has never been more critical.

Recent controversies involving companies in financial services, retail, and media sectors have shown how weak boards — or rubber-stamp directors — can fail to flag risky practices in time. Regulators are now insisting on board accountability, and investors are demanding transparency and ethical leadership.

Challenges They Face

• Lack of real independence: Often, IDs are appointed by promoters or known to key stakeholders.
• Limited access to internal information unless they actively pursue it.
• Tokenism: Some are offered positions for brand value or gender diversity without being involved in core decision-making.
• Liability without control: IDs face reputational risk and legal exposure for decisions they may not have influenced.

A Shift in Culture

Progressive companies are now empowering IDs with:

• Dedicated onboarding and governance training
• Access to internal auditors and key departments
• Clear documentation of dissent or abstentions
• Boardroom discussions beyond rubber-stamp meetings

Platforms like the Institute of Directors (IOD) and Indian Institute of Corporate Affairs (IICA) are also helping build a pipeline of trained, truly independent directors.

Conclusion

As India’s corporate landscape matures, Independent Directors are no longer passive passengers — they are expected to be active navigators. Their ability to speak truth to power may well define the future of corporate governance in India.