From Byju’s, Koo to Bluelearn: 7 Indian startups that went from hype to layoffs and shutdowns

India’s startup ecosystem has produced some of the country’s biggest business success stories, but it has also witnessed several high-profile collapses in recent years. As funding dried up and investor scrutiny intensified after the pandemic-era boom, many heavily funded startups began grappling with layoffs, governance concerns, accounting irregularities and operational challenges. From edtech giant Byju’s to hyperlocal delivery platform Dunzo, several once-promising companies saw dramatic downturns despite raising massive capital and expanding aggressively. Here are seven Indian startups that experienced rapid growth before losing momentum or shutting down. Byju's Once India’s most valuable startup, Byju’s expanded rapidly through a string of high-profile acquisitions, including Aakash Educational Services and several international edtech firms. At its peak, the company was valued at more than $20 billion. However, as demand for online learning weakened after the pandemic, Byju’s began facing severe cash-flow pressures. Multiple reports pointed to delayed financial filings, investor disputes and governance concerns linked to acquisitions and funding practices. By 2023 and 2024, the company had also carried out large-scale layoffs affecting thousands of employees. Koo Koo emerged as India’s alternative to Twitter/X and gained traction during tensions between the Indian government and global social media platforms. The app attracted politicians, celebrities and regional-language users, while also raising significant funding. Despite its early popularity, Koo struggled to retain users and build a sustainable revenue model. Reports suggested that monetisation challenges and slowing user growth eventually hurt the business, leading to its shutdown in 2024. GoMechanic GoMechanic expanded rapidly across India by offering tech-enabled car servicing through partner garages. The startup raised substantial funding and became one of the country’s prominent auto-service platforms. However, in 2023, investors flagged accounting irregularities and inflated revenue reporting. The founders later acknowledged financial mismanagement, triggering layoffs and restructuring. The controversy became one of the most widely discussed governance failures in India’s startup ecosystem. Trell Trell combined influencer-led content with shopping and emerged as a fast-growing creator-commerce platform. It attracted strong investor interest during India’s short-video boom and quickly expanded among younger audiences. However, operational challenges, heavy spending and funding constraints began affecting the business. Reports of layoffs and stalled growth followed as the company struggled to sustain its aggressive expansion plans. Dunzo Backed by Google, Dunzo became a household name for hyperlocal deliveries during the pandemic. The company later expanded into quick commerce as competition intensified from rivals such as Blinkit and Zepto. However, rising operational costs, high cash burn and funding pressures created significant strain on the business. Reports later highlighted delayed salaries, layoffs and downsizing as Dunzo struggled to maintain growth in an increasingly crowded market. Mojocare Mojocare gained attention through its men’s health and wellness platform backed by aggressive online marketing. The startup grew quickly and attracted investor interest in India’s booming healthtech sector. However, reports later raised concerns about financial reporting and business practices. Investor scrutiny and operational troubles eventually led to layoffs and restructuring within the company. Bluelearn Bluelearn positioned itself as a Gen Z-focused student community platform offering peer learning, networking, and skill-building sessions. The startup built a strong online audience and gained early traction among college students.