Significant changes in employment trends occurred in India’s startup ecosystem between August 2023 and August 2024, with Delhi NCR emerging as the undisputed leader in employing unicorns. The thriving businesses in Delhi NCR provide an intriguing picture of the changing Indian startup scene, whereas other centers such as Bengaluru and Mumbai faced difficulties.
Credits: Silicon India
Delhi NCR: A Unicorn Hiring Powerhouse
Bengaluru only managed to add 2,384 staff members over the 12-month period, while Delhi NCR-based startups added an astounding 18,554 personnel. With their main offices in the national capital area, PolicyBazaar, Blinkit, and Zomato were the main forces behind this upsurge. This hiring frenzy demonstrates Delhi NCR’s increasing influence as a hotspot for unicorns.
Interestingly, the PrivateCircle analysis noted that although NCR experienced a surge in talent, the area may still trail Bengaluru in terms of overall workforce size. This is mostly because there are 42 unicorns in Bengaluru, the most in India, as opposed to 26 in the NCR. However, the hiring figures show that the Delhi NCR environment is on a strong development trajectory.
Mumbai’s Surprising Decline
In stark contrast, Mumbai—long regarded as a vibrant startup hub—saw a net decline of 7,024 employees among its unicorns. This dip aligns with major shifts like Zepto relocating its headquarters to Bengaluru. Similarly, Pune and Hyderabad experienced comparable declines, further emphasizing the concentration of startup activity in select regions like NCR, Bengaluru, and Chennai.
Chennai’s Quiet but Steady Growth
While Delhi NCR stole the spotlight, Chennai reported the second-highest employee additions among unicorns, with 4,785 new staffers. The city’s appeal isn’t limited to startups; it also leads in headcount growth for global capability centers (GCCs), making it an emerging hub for tech talent.
Bengaluru: The Eternal Startup Capital
Despite adding fewer employees compared to Delhi NCR and Chennai, Bengaluru remains India’s startup capital. With 42 unicorns headquartered in the city, its dominance in the ecosystem is undisputed. However, the relatively modest hiring numbers reflect a cautious approach, likely influenced by past layoffs and efforts to optimize workforce efficiency.
Funding Recovery Fuels Hiring Trends
The hiring surge in Delhi NCR and other regions coincides with a recovery in the startup funding landscape. According to Venture Intelligence, startup investments in 2024 grew 14% year-over-year to $10.9 billion. Hiring sentiment picked up markedly from March 2024, with 42,000 employees hired across India’s unicorns during this period. Companies like Paytm, PB Fintech, and BigBasket were instrumental in driving these numbers.
Layoffs Decline Amid Stable Attrition Rates
After a tumultuous period marked by widespread layoffs, the startup ecosystem stabilized in 2024. Layoffs decreased by 46% year-over-year, totaling 8,895 for the year. Unicorns such as Zerodha, Zoho, and MapMyIndia maintained attrition rates of around 1% or lower, showcasing exemplary employee retention practices. On average, the attrition rate across startups was 4.5%, significantly lower than the 15-17% range reported in Indian corporates.
Challenges Persist Despite Hiring Spree
While unicorns expanded their workforce in certain regions, the total employee base across India’s 117 unicorns declined by 6,700, from 417,561 in August 2023 to 410,829 in August 2024. This paradoxical trend suggests that many companies are prioritizing productivity and cost efficiency over aggressive headcount growth.
Credits: Money Control
What Lies Ahead?
A more promising future for India’s startup ecosystem is suggested by the rebound in startup financing and the drop in layoffs. Industry projections predict a 20–30% growth in hiring at startups in the upcoming year. The next stage of expansion will be shaped by Delhi NCR’s ongoing supremacy, Chennai’s gradual ascent, and Bengaluru’s timeless appeal.
Conclusion
Delhi NCR’s rise to the top of the unicorn recruiting rankings is indicative of the area’s expanding clout in India’s startup scene. Even if issues like declining net employee numbers and changing regional dynamics still exist, Indian entrepreneurs’ adaptability and tenacity portend an interesting year. India’s unicorns are set to rewrite their growth narrative in 2025 as investment flows level off and recruiting sentiment improves.
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