Prospects Brighten For Job Seekers In Startups

Indian startups are preparing to ramp up their talent acquisition efforts as the funding environment improves after a prolonged period of layoffs. Layoffs have significantly declined, falling by 46% YoY to 8,895 in 2024, compared to an estimated 16,398 in 2023

Startups can indeed kick-start jobs and careers, especially for young professionals and those seeking diverse experiences. They offer a dynamic environment where individuals can gain valuable experience, learn new skills, and go up the career ladder.

The Indian startup ecosystem is expected to see significant growth and increased hiring this year, particularly in sectors like retail, e-commerce, fintech, and FMCG. Tech-driven startups will be looking for digital and AI proficiency, including skills in software development, data science, cybersecurity, cloud computing, and AI/ML. Additionally, roles in areas like prompt engineering, machine learning and cybersecurity will be in demand.

India has emerged as the third-largest startup ecosystem in the world, fostering more than 100 unicorns.

“Startups have created over 1.6 million jobs across the country, demonstrating their role as significant employment generators,” the Union Commerce ministry had stated last December.

With the return of funds to the sector towards the end of 2024, Indian startups are likely to be back on a hiring spree this year. According to media reports, staffing firms project a 20-30 per cent surge in hiring in 2025.

Startups may be a high-churn environment but remain at the top of the pyramid when it comes to job aspirations for techies. Last year, we saw 8,000 people move from product companies to startups. They were followed by large FAANG companies (Facebook, Amazon, Apple, Netflix, and Google), which employ 1.4 million people in India, across Fortune 500 companies, GCCs, IT services firms. The bottom of the pyramid housed non-technology companies, including banks and PSUs.

For many employees working in the startup ecosystem, the employee stock options programmes (ESOPs) are a significant part of their compensation bucket, which allows them to make money in the long term.

Start-ups can be a huge opportunity to make it big in the market. Millennials are keener on making changes on a bigger level and adding value to the lives of people, thus startups offer a platform for youths to come up with new and innovative ideas. Also, a startup is sure to be a game-changer and ultimately a huge success if it works out well in the end.

Among the 1.4 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), 117 are unicorns as of December 2024.

By all accounts, 2024 has been a revolutionary year for Indian startups given that 12 companies launched their IPOs as compared to six each in 2023 and 2022, and 10 in 2021. Collectively, they raised more than $4 billion, including Swiggy’s $1.5 billion offering and more than $730 million by Ola Electric.

Indian startups are preparing to ramp up their talent acquisition efforts as the funding environment improves after a prolonged period of layoffs.

Layoffs in the startup sector have significantly declined, falling by 46 per cent year-on-year (YoY) to 8,895 in 2024, compared to an estimated 16,398 in 2023.

Industry experts attribute this shift in hiring sentiment to an improving funding landscape. Funding for startups has increased by 14 per cent YoY, reaching $10.9 billion in 2024 so far, prompting companies to focus on growth again.

Sectors such as retail, e-commerce, fintech, FMCG, automotive, travel, and hospitality are expected to witness the most significant hiring growth. In contrast, sectors like BFSI, telecom, healthcare, pharma, and energy may report subdued hiring activity.

The startup ecosystem is evolving rapidly, driven by technological advancements, shifting market demands, and an ever-changing workforce.

Meanwhile, job seekers looking to land roles in fast-paced startup environments need to develop a distinct set of skills that align with the needs of innovative companies. Whether you’re a recent graduate or an experienced professional aiming for a career switch, understanding the top skills startups seek can give you a competitive edge.

Unlike traditional corporations, startups operate with lean teams, fast decision-making, and an emphasis on growth. This means hiring managers are looking for candidates who can wear multiple hats, think independently, and contribute meaningfully from day one. Employers increasingly prioritise agility, tech-savvy problem-solving abilities over formal credentials, making practical experience and a proactive mindset more valuable than ever.

Hiring platforms anticipate continued growth in active demand. By the second quarter of 2025, hiring demand may exceed levels last seen in the early 2022. Salary expectations are projected to increase by up to seven per cent on average, and attrition rates are expected to stabilise.

In order to counter turnover, startups are investing in retention strategies and employee engagement programmes to enhance loyalty, opine many experts.