Hiring in start-ups surge in April, but 6% annual drop in e-recruitment

NEW DELHI: Despite economic uncertainties, the hiring activity among start-ups has significantly increased in April this year, while there has been a 6 per cent decline in e-recruitment for white-collar compared to the same period in 2022, a new report said on Tuesday.

According to the report by foundit (previously Monster India & APAC), there has been a 4 per cent monthly dip, indicating cautious hiring sentiments among Indian recruiters.

Although some sectors like BFSI (+3 per cent), travel & tourism (+2 per cent), and import/export (+13 per cent) experienced a boost on a month-on-month basis, other sectors, such as logistics, home appliances, and Oil and gas, saw a significant decline.

“Hiring has declined, but there are still a plethora of job opportunities in emerging industries for job seekers. Remarkably, the Indian startup ecosystem has taken a turn, exhibiting resilience in hiring intent despite the prevailing job market challenges,” said Sekhar Garisa, CEO, foundit.

Moreover, the report showed the retail (22 per cent), travel & tourism (19 per cent) are among the top industries exhibiting positive growth year-on-year basis, while BFSI (-4 per cent) and BPO (-13 per cent) sectors continue to be apprehensive.

The overall hiring demand among start-ups has noted a strong 19 per cent (year-on-year) growth this April 2023 compared to the previous year.

In addition, while most cities showed an overall decline in hiring, start-ups in Bangalore, Mumbai and Delhi hosted maximum demand for professionals.

However, in the first quarter (Q1) of 2023, Indian start-ups raised a total of $2.8 billion in funds, 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.