Domestic startup hiring surges 32%, sustainable growth new focus: Report

India's startup ecosystem is experiencing a significant surge, with hiring up 32 per cent year-on-year, signalling a strategic pivot towards sustainable and innovation-led scaling, according to a report on Monday.

The report by jobs platform foundit (formerly known as Monster APAC & ME), showed that India's white-collar job market remains strong, posting 18 per cent year-on-year growth.

The report noted that the startup job market has shown renewed confidence.

In April 2025, startup job postings surged by 32 per cent year-on-year and 12 per cent over the last three months, pointing to renewed hiring confidence.

This hiring momentum is further reinforced by a 22 per cent rise in new startup registrations over the past year.

“There is a notable shift in the way startups are scaling in India,” said V. Suresh, CEO of foundit.

“Growth is no longer confined to major metropolitan areas; instead, we are witnessing a robust expansion into Tier-2 cities, signaling a more balanced and inclusive model of growth. At the same time, there is an increasing emphasis on recruiting seasoned professionals, reflecting a strategic focus on long-term sustainability,” he added.

IT services lead startup hiring, accounting for 32 per cent of all startup job postings -- up from 23 per cent last year.

Healthcare has grown from 6 per cent to 9 per cent, signalling increased focus on deep tech and health-focused solutions.

In contrast, consumer-centric sectors like media and entertainment, and edtech have seen steady declines.

Further, tier-II cities are fast emerging as major startup hubs, with their job share surging from 9 per cent in April 2024 to 31 per cent in April 2025.

This threefold rise signals a decisive shift in India's startup geography, led by Coimbatore, Jaipur, Indore, Lucknow, and Bhubaneswar, the report said.

Meanwhile, Bengaluru, Delhi/NCR, and Mumbai recorded steep declines in startup job share, while Chennai and Hyderabad held steady -- highlighting a clear move towards more distributed, pan-India startup growth.

Startups are also increasingly prioritising experience. This can be seen by a decline in fresher hiring (0-3 years' experience) from 53 per cent to 41 per cent year-on-year in April 2025.

The shift reflects a growing demand for specialised skills across all levels, with roles for mid-career professionals (4-6 years and 7-10 years' experience) rising to 28 per cent and 15 per cent, respectively.

"These trends point to a more deliberate, future-oriented approach that prioritises sustainable growth and lasting impact over rapid, short-term expansion," Suresh said.