Nearly half of professionals across India’s startup ecosystem are experiencing low levels of wellbeing, and employees are the worst affected group, according to a new study released ahead of World Mental Health Day on October 10.
The report, titled State of Mind: The Startup Ecosystem, found that 47.5% of respondents recorded low wellbeing scores. Employees emerged as the most vulnerable group at 54.3%, followed by investors at 45.2%, ecosystem supporters at 44.2% and founders at 42.9%.
The study surveyed 823 founders, employees, investors and ecosystem supporters across India. It was initiated by Sheetal Bahl, Founder and Partner at Merak Ventures, and authored by Priyanka Kartari, Dr Sukhmani Pal and Dr Dilip Panniker. Researchers used an adapted version of the World Health Organisation’s Five-item Well-Being Index alongside respondent self-assessments.
While founder burnout has long dominated conversations about startup mental health, the data suggest employees may face even greater challenges. The report positions psychological safety, defined as the ability to openly acknowledge struggles at work without fear of consequences, as the factor most strongly associated with wellbeing outcomes.
The findings on psychological safety are stark. 34.8% of respondents said they did not feel safe speaking up about workplace challenges. Among employees who felt unsafe speaking up, 88.3% recorded low wellbeing scores. Among those who did feel safe, that figure dropped to 26.7%.
The study also surfaced a gap between measured wellbeing and self-perception. Of the 391 respondents who recorded low wellbeing scores, 35.3% described themselves as either thriving or doing okay. Despite the widespread distress, only 15.1% reported seeking professional mental health support.
“Employees carry 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 can significantly improve wellbeing outcomes,” said Sheetal Bahl, Founder and Partner, Merak Ventures.
The initiative was shaped by Bahl’s own experience with mental health challenges, which led him to take a short sabbatical in 2025. He subsequently organised a series of mental health conversations across startup communities in Delhi, Bengaluru and Mumbai. The wider effort is backed by a core group that includes Gaurav Agarwal, Co-founder of 1mg, and Akshit Mathur, along with the report’s authors.
The study links wellbeing to retention and business continuity, flagging that sustained exhaustion contributes to founder exits, higher sick leave and increased job switching. Its recommendations include anonymous wellbeing assessments, confidential internal and external support systems, manager training on mental health, protected time off, and greater investor involvement in wellbeing discussions and due diligence processes.
The survey received 1,040 submissions, with 823 responses retained after screening. The authors noted that the findings demonstrate association rather than causation and do not constitute clinical diagnoses.
