September 21, 2025

The sizzling startup scene led by IIT and IIM graduates is seeing a sudden chill in 2025. Only 36 startups have been launched by these cream of the crop so far this year. This is a sharp drop from 236 in 2024 and a whopping 383 in 2023, reveals fresh data from Tracxn, a market intelligence firm shared with ET. So, what’s cooking? Experts say don’t panic. Himanshu Rai, director of IIM Indore, tells ET, “A temporary dip in entrepreneurial activity among graduates from premier institutions such as the IIMs and IITs should not be misinterpreted as a waning of aspiration in Indian youth.” He explains that this slowdown is tied to bigger economic storms brewing globally, not a loss of energy or ideas among our youth. The bigger picture shows many headwinds – global uncertainties, higher interest rates, inflation, and a cautious mood among investors. Neha Singh, chairperson and managing director at Tracxn, says, “This is due to the global economic uncertainty and rising interest rates have led investors to adopt a more cautious approach.” It's like investors are holding their wallets tightly, waiting for safer times. Female entrepreneurs face an even tougher ride. Startups by women graduates from IITs and IIMs have crashed from 61 in 2023 and 34 in 2024 to just 3 this year! Overall, women-led startups in India also tumbled from 582 in 2023 and 328 in 2024 to only 26 in 2025. Singh urges us to see this as a natural market correction, not a breakdown of India’s startup spirit. So, while the numbers make you raise an eyebrow, the heartbeat of innovation among Indian youth is still strong and buzzing – just taking a short breather.

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Tags: Startups, Iit, Iim, Entrepreneurship, Funding slowdown, Women entrepreneurs,