Indian Startups Are Back in Action & They're Hiring Smarter Than Ever

After a long spell of funding winters, layoffs, and cautious optimism, India’s startup sector is beginning to breathe again—and this time, it’s not just gasping for VC funds. It’s breathing deeper, stronger, and more sustainably.

In what could be termed a turning point for India’s new-age economy, the country’s startup hiring activity jumped by a remarkable 32% year-on-year in April 2025, according to a report released by foundit (formerly known as Monster APAC & ME). This isn’t just a statistic—it’s a pulse check on a sector that had been under stress but is now slowly regaining confidence and recalibrating its priorities.

The uptick in hiring is part of a broader resurgence in India’s white-collar job market, which saw an 18% increase overall during the same period. But what makes the startup story stand out is the shift in how growth is being pursued—not through heady expansion alone, but through measured, innovation-first, experience-led progress.

From Survival to Strategy: A Shift in Startup DNA

“There’s a clear transformation in how startups are scaling,” said V. Suresh, CEO of foundit. “We’re no longer seeing growth restricted to traditional metro hubs. There’s strong momentum in Tier-2 cities, along with a noticeable shift toward hiring experienced talent to ensure long-term sustainability.”

The keyword here is sustainability—not just in environmental terms, but in how teams are being built, businesses are being scaled, and decisions are being made. Startups today aren’t just chasing headlines; they’re laying foundations.

While the glitz of unicorn valuations dominated startup conversations for years, the new narrative is less flashy and more grounded: build right, not just fast.

IT and Healthcare Steal the Spotlight

If we zoom in on sectors leading this revival, IT services emerge as the undisputed frontrunner. A year ago, IT made up 23% of startup job postings. Today, that figure has climbed to 32%, showing how deeply tech continues to run in the startup bloodstream—even as companies become more focused on meaningful, scalable tech solutions.

Interestingly, healthcare startups are also quietly making moves. Their share of job postings has grown from 6% to 9%, highlighting the rising importance of deep tech, health innovations, and telemedicine—areas that have received a post-pandemic boost and are now maturing into serious investment zones.

However, it’s not all sunshine across the board. Media, entertainment, and edtech sectors—once poster children of the startup boom—are facing headwinds. Layoffs, funding squeezes, and changing consumer behavior have pushed these verticals into a slower lane. The correction, while painful, is part of the ecosystem’s larger realignment toward viability and core strength.

Beyond Bengaluru: India’s Tier-2 Cities Are the New Growth Engines

Perhaps the most exciting development isn’t just about which industries are hiring—but where this hiring is happening.

In a stunning shift, Tier-2 cities now account for 31% of startup job postings, up from just 9% in April 2024. That’s more than a threefold rise in just a year.

Cities like Coimbatore, Jaipur, Indore, Lucknow, and Bhubaneswar are quietly transforming into vibrant innovation clusters, giving the traditional startup metros a run for their money. While Bengaluru, Delhi/NCR, and Mumbai have seen a dip in their job share, Chennai and Hyderabad have held steady, further diversifying the startup geography.

This decentralization is not just a result of remote work policies or cost savings. It reflects a deeper cultural and economic trend—talent is no longer confined to the big cities, and founders are learning to meet their teams where they are.

Experience Is In, Fresher Frenzy Is Out

If 2021 and 2022 were about mass hiring and rapid onboarding of freshers, 2025 is about selective hiring of seasoned professionals.

According to the report, the share of hiring for freshers (0–3 years of experience) has dropped significantly—from 53% to 41%. In contrast, demand for professionals with 4–10 years of experience has surged, now constituting 43% of total startup hiring.

Startups, in other words, are maturing. They’re no longer betting all their chips on youthful energy alone. Instead, they’re investing in a blend of innovation and institutional knowledge.

“This evolution reflects a shift toward thoughtful, sustainable growth—with an emphasis on building resilient teams rather than chasing rapid expansion,” said Suresh.

What This Means for the Ecosystem

The signals are clear: Indian startups are not just bouncing back—they are bouncing back better.

By spreading their wings into Tier-2 cities, focusing on tech-driven and healthcare innovations, and hiring more experienced talent, startups are writing a new playbook. It’s one that prioritizes depth over dazzle, people over perks, and resilience over rapid scale.

The days of hypergrowth-at-all-costs may not be completely over, but they’re certainly being reimagined. The ecosystem is evolving—and so is its definition of success.

As the sector turns this corner, India’s startup story in 2025 might not be just about creating the next unicorn. It might be about building something even rarer—a startup economy that’s balanced, inclusive, and future-ready.