Nearly half of professionals across India’s startup ecosystem are experiencing low levels of wellbeing, according to a new study that raises concerns about workplace mental health, employee retention and long-term business sustainability.
The report, titled State of Mind: The Startup Ecosystem, found that 47.5% of respondents recorded low wellbeing scores, with employees emerging as the most affected group. The study surveyed 823 founders, employees, investors and ecosystem supporters across India and was initiated by Sheetal Bahl, Founder and Partner at Merak Ventures. It was authored by Priyanka Kartari, Dr Sukhmani Pal and Dr Dilip Panniker.
Using an adapted version of the World Health Organisation's Five-item Well-Being Index alongside self-assessments from respondents, the study examined wellbeing trends across different stakeholder groups in India's startup sector.
Employees emerge as the most vulnerable group
While founder burnout has long dominated conversations around startup mental health, the study suggests employees may be facing even greater challenges.
According to the findings:
- 54.3% of employees reported low wellbeing
- 45.2% of investors reported low wellbeing
- 44.2% of ecosystem supporters reported low wellbeing
- 42.9% of founders reported low wellbeing
The findings indicate that employees recorded the highest incidence of poor wellbeing among all groups surveyed, shifting attention towards the broader workforce challenges within startup organisations.
Psychological safety shows strongest association with wellbeing
The report identified psychological safety as the factor most strongly associated with wellbeing outcomes.
Researchers defined psychological safety as an individual's ability to openly acknowledge struggles or difficulties at work without fear of negative consequences.
The study found that 34.8% of respondents did not feel safe speaking up about their challenges in the workplace.
Among employees who reported feeling unsafe speaking up, 88.3% recorded low wellbeing scores. In contrast, only 26.7% of employees who felt safe speaking up reported low wellbeing.
The authors noted that the findings demonstrate a strong association between psychological safety and wellbeing but do not establish a causal relationship.
Many professionals may not recognise their own distress
The study also highlighted a gap between measured wellbeing and personal perceptions of mental health.
Of the 391 respondents who recorded low wellbeing scores, 35.3% described themselves as either thriving or doing okay.
The finding suggests workplace stress and emotional strain may frequently go unrecognised or unacknowledged by individuals themselves.
Despite widespread wellbeing concerns, only 15.1% of respondents reported seeking professional mental health support.
Commenting on the findings, Sheetal Bahl said the results reflected concerns already widely discussed within the startup community but also revealed important nuances.
According to Bahl, employees carried the largest share of stress across the ecosystem, while relatively straightforward measures such as improving psychological safety, offering support systems and enabling genuine time off could significantly improve wellbeing outcomes.
Study originated from ecosystem-wide conversations
The initiative was shaped by Bahl's own experience with mental health challenges, which led him to take a short sabbatical in 2025.
Earlier this year, he began organising conversations and meetups focused on mental health across startup communities in Delhi, Bengaluru and Mumbai.
Those discussions evolved into a broader effort to gather data on the issue after recognising a gap between awareness of mental health challenges and concrete action across the ecosystem.
The wider initiative is supported by a core group that includes Gaurav Agarwal, Co-founder of 1mg, and Akshit Mathur, alongside the report's authors.
Wellbeing linked to retention and business resilience
Beyond individual health outcomes, the report connects wellbeing challenges with broader business implications.
According to the study, sustained exhaustion can contribute to founders exiting businesses, employees taking additional sick leave and increased job switching. The findings position wellbeing as an important factor influencing organisational continuity, workforce stability and startup growth.
The report recommends several interventions, including:
- Anonymous wellbeing assessments
- Confidential internal and external support systems
- Manager training on mental health issues
- Protected and meaningful time off
- Greater investor involvement in wellbeing discussions and due diligence processes
The survey received 1,040 submissions, with 823 responses retained after screening and exclusion checks.
Researchers noted that the study used an adapted version of the WHO Five-item Well-Being Index and a borrowed cutoff that was not independently validated for the adaptation. The report also emphasised that its findings do not constitute clinical diagnoses.
Released ahead of World Mental Health Day on 10 October 2026, the study adds fresh data to ongoing discussions about creating healthier, safer and more sustainable workplaces across India's fast-growing startup ecosystem.
