Indian startups to boost hiring by 20% in 2025
After a challenging period marked by layoffs and a funding slowdown, Indian startups are preparing to ramp up their hiring efforts as the funding environment improves. According to a report by Money control, staffing firms predict a 20-30% increase in hiring among startups heading into 2025.
Key Sectors Driving Hiring Growth
Sectors such as retail, e-commerce, fintech, FMCG, automotive, travel, and <strong>hospitality are expected to see the most significant growth in hiring. On the other hand, industries like BFSI, telecom, healthcare, pharma, and energy may experience slower hiring activity, particularly in the first quarter of 2025.
Impact of the “Funding Winter”
The slowdown in hiring over the past year was largely due to the “funding winter,” which saw a sharp decline in investment volumes. From a peak of $36 billion in 2021, funding fell to $24.7 billion in 2022 and dropped further to $9.6 billion in 2023, according to Venture Intelligence data.
As funding levels improve, startups are utilizing their resources to restructure teams and optimize operations for sustainable growth. For example, a $10 million Series A funding can support hiring 25 IT professionals, while a $20 million round could enable the recruitment of 40 senior executives, as shared by Neeti Sharma, CEO of TeamLease Digital.
