Fat paychecks vanishing fast from Indian startups: Study

Hiring jobs salary office IT industry

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New Delhi: Hiring in senior roles at Indian startups (CTC greater than 50 lakh per annum) went down by around 80 per cent across new-age tech platforms in the first quarter of 2023 as compared to same period last year, continuing the pattern of declining hiring amid a funding winter, a report showed Thursday.

The e-commerce and edtech sectors saw significant impacts, with hiring plummeting by 93 per cent and 84 per cent, respectively, according to the report by LONGHOUSE Consulting, an executive search and talent advisory firm.

“The hiring scenario in the startup ecosystem in Q1 will be similar in the following two quarters as well. There will be ongoing loss in senior positions with high-paying jobs,” said Anshuman Das, CEO and Founder, LONGHOUSE Consulting.

Growth stage and late-stage start-ups will continue to be badly hit, although early-stage and Pre-Series A start-ups are projected to hire.

“EV, healthcare, AI/ML, fintech and manufacturing early-stage start-ups in the series A and B levels are anticipated to increase the hirings with a few roles open for senior positions,” he added.

However, the startup ecosystem will witness a surge in more seasoned entrepreneurs who are launching their second or third ventures as well as seasoned executives who are switching to entrepreneurship.

“The current start-up slowdown will fuel more entrepreneurship than impact it negatively,” said Das.

Indian startups raised a total of $2.8 billion in funds in the first quarter of 2023, a massive 75 per cent decrease compared to the same period in the previous year ($11.9 billion), as rising inflation and interest rates continue to impact investments significantly amid a deepening funding winter.

There were no new unicorns created in the January-March period, compared with 14 unicorns in Q1 2022, according to a recent report by Tracxn, a leading global market intelligence platform.

IANS 

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