🚨 Why Indian Startups Are Failing — And How Digital PR Can Save the Next Generation

why startups fail without pr

India’s startup ecosystem has seen explosive growth in recent years. Ranked as the third-largest startup hub in the world, the country is home to over 115,000 government-recognized startups. Backed by incubators, investors, and a young entrepreneurial workforce, India produces unicorns faster than ever.

But despite this momentum, 90% of Indian startups shut down within their first five years.

While funding, competition, and execution often get the blame, another key reason is rarely discussed: lack of visibility, credibility, and public trust. Startups that fail to build awareness in the market struggle to acquire users, attract investors, or stand out.

In this article, we explore the true reasons behind startup failures in India. We highlight a real-world case study and demonstrate how digital PR and TS Newswire can support the next generation of startups in achieving success.

📊 Startup Failure in India: The Stats You Can’t Ignore

MetricData
Startup failure rate in India90% within 5 years (IBM & Oxford study)
Registered startups (2024)115,000+ (Startup India)
Most common failure causesLack of market visibility, marketing, positioning
Startups using PR early68% survive 5+ years (YourStory Research)
ROI of earned media coverage3x more effective than paid ads (Nielsen)

Startups often focus on product development, operations, or fundraising. While these are essential, many neglect visibility and trust-building. Without coverage on trusted platforms, they remain unknown to potential users, investors, and job applicants.

why Startups fail in india

This “invisibility” is one of the most dangerous threats to a startup. Lack of awareness directly impacts their ability to grow, scale, and raise further funding. When a startup doesn’t appear in online searches or media, it is invisible to consumers and venture capitalists.

In India, where competition is intense and consumer attention spans are brief, startups must adopt a bold approach to product development and communication strategies.

🚨 Real Startup Story: The Rise & Fall of Doodhwala

Doodhwala was a Bangalore-based subscription milk delivery startup. Launched in 2015, it raised over $2.4 million in funding and operated in multiple cities. It had logistics, tech, and a strong product-market fit. Yet, it shut down in 2019.

What went wrong?

  • 📉 Minimal PR efforts post-funding
  • 🚫 No consistent media visibility
  • 🔍 Lack of brand awareness in new markets
  • 🚫 Investor interest faded due to lack of social proof

While competitors like SuprDaily and BigBasket aggressively pushed their media narratives, Doodhwala failed to build a brand voice or online credibility. It missed being featured in top business publications and lost the race for mindshare.

Their product may have been good, but the brand remained under the radar without digital footprints and consumer-facing stories. For a startup in the consumer delivery space, that’s fatal.

🤔 What Could Have Helped?

Digital PR could have significantly changed their outcome. Here’s how:

  1. Press coverage in India Today, HT, or Economic Times would have boosted brand awareness.
  2. Third-party validation through media mentions could have built trust during funding rounds.
  3. SEO benefits via backlinks would have improved discoverability.
  4. Investor relations through regular news would have kept stakeholders engaged.
  5. User confidence through consistent brand presence would have increased app downloads and retention.

In today’s attention economy, a brand needs to show up constantly. Visibility is no longer a luxury—it’s a survival metric.

“Startups don’t fail because they lack ideas—they fail because they lack visibility. In today’s digital world, if your story isn’t being told, your brand doesn’t exist.”

🌐 What Is Digital PR (And Why It Works for Startups)

Digital PR is an evolved form of traditional PR that focuses on:

  • Getting your brand featured in trusted online publications
  • Securing backlinks for SEO
  • Earning third-party mentions to build credibility
  • Driving organic traffic and leads

Unlike advertising, which is paid, digital PR earns you attention through quality stories and strategic outreach. For startups, it’s one of the most cost-effective ways to:

  • Launch and announce products
  • Build market authority
  • Differentiate from copycats
  • Attract top talent and investors
  • Improve online reputation with consistent media exposure

Moreover, in a world where AI curates search results (Google SGE, Perplexity), media credibility is the currency of visibility. AI-driven search platforms highlight brands with genuine third-party citations and trusted mentions.

🛠️ How TS Newswire Helps Startups Beat the Failure Curve

TS Newswire is a digital PR platform built with startups in mind. Here’s how it transforms the PR game:

✅ 1. Access to Top-Tier Media

Publish news on:

  • Times of India
  • Economic Times
  • Hindustan Times
  • ANI
  • Zee5
  • Outlook India
  • Yahoo Finance
  • PR Distribution
  • AP News
  • many More

This boosts trust and visibility fast. A startup featured in these publications appears more credible, helping secure partnerships and investor meetings.

✅ 2. Budget-Friendly for Startups

TS Newswire offers startup pricing far below traditional PR agencies. You get top-tier reach at 1/3rd the cost. It’s ideal for bootstrapped teams and seed-stage founders who need results without draining cash.

✅ 3. Customized PR Campaigns

Launches, funding news, market expansion, or founder interviews—TS Newswire builds startup-specific strategies that align with your brand and goals. They don’t just distribute news; they craft your story and place it where it matters most.

🌟 Key Moments When Startups Should Use Digital PR

StagePR Focus
MVP LaunchBrand story, product intro
Seed RoundInvestor interest, media trust
GrowthCompetitive positioning, customer reach
PivotReputation control, narrative update
Pre-ExitVisibility, acquisition prep

Whether you’re hiring talent, entering a new city, or announcing a feature—every milestone deserves visibility. Digital PR builds momentum and sustains attention when used proactively.

🧠 Final Thought

Most startups don’t fail because they lack ideas. They fail because no one knows they exist. Even the best product can fade without media attention, credibility, or Google visibility.

In 2025, Digital PR is no longer optional. It’s how you get seen, get trusted, and get funded. TS Newswire is here to give startups that edge. Whether you’re building a B2B SaaS product or a D2C lifestyle brand, strategic PR could be the game-changer you didn’t know you needed.

🔗 Ready to Get Started?

Visit www.tsnewswire.com to plan your PR strategy today.

Vivek Sharma

Vivek Sharma

Vivek Sharma is the founder of TS Newswire, a leading digital PR and press release distribution platform. With over 8 years of hands-on experience in digital marketing, Vivek has helped thousands of brands amplify their online presence through strategic media placements, SEO-driven content, and targeted press campaigns.His expertise lies at the intersection of digital storytelling and media outreach, making him a trusted partner for startups, agencies, and Fortune 500 companies alike. Under his leadership, TS Newswire has published over 30,000+ articles across major platforms including Yahoo Finance, Benzinga, and Business Insider.A passionate advocate for ethical PR and data-backed strategies, Vivek continues to push the boundaries of modern digital marketing, helping businesses build authority, trust, and visibility online.

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