The Indian startup ecosystem continues to exhibit a robust appetite for skilled talent, particularly evident in unicorn startups valued at over $1 billion. In the past year alone, India’s top 15 unicorns have let go of their 33,000 underperforming employees while welcoming an impressive 58,000 new hires, resulting in a remarkable net headcount growth of 25,000.
Among these top 15 unicorns are BigBasket, Delhivery, Flipkart, IndiaMART, Meesho, Ola, PhonePe, Swiggy, Udaan, Zoho, and Zomato. Their collective headcount currently stands at 255,000, underlining the substantial workforce employed within the ecosystem.
The surge in new employees in India’s startup unicorns is particularly noteworthy given the backdrop of a prolonged funding winter and other operational challenges. However, despite these obstacles, unicorn startups remain steadfast in their aggressive hiring strategies to drive their growth trajectories forward. Some of these startups have already made their public debut in 2022 and 2023, while others are currently planning to launch their initial public offerings (IPOs) this year.
Talent Movement Within the Startup Ecosystem
The data, curated for The Economic Times by specialist staffing firm Xpheno, sheds light on a noteworthy trend in talent retention in the Indian startup ecosystem over the past 12 months. Interestingly, the analysis identified 27 companies as the top employers of talent who had left their previous jobs within the same industry or sector.
What’s particularly striking is that among these 27 top employers, 18 were startups, accounting for a substantial 75% of the talent absorptions. Even more intriguing is the fact that 8 out of these 18 startups belonged to the esteemed group of top 15 unicorns. This indicates that there was a substantial lateral exchange of talent within this elite group of unicorns.
In other words, employees leaving one startup or unicorn often found employment opportunities within another startup or unicorn, showcasing a dynamic movement of talent within the top echelons of the Indian startup ecosystem.
On the other hand, the remaining nine companies that absorbed talent in the last 12 months were classified as large and established enterprises, representing 25% of the attrited talent.
“Within the 100 plus unicorns in India, broadly 50% are doing really well and these top ones still remain attractive talent destinations,” said Amit Nawka, partner, deals and startups at PwC.
Opportunities for CXO Recruitment
Amit Nawka further emphasizes that many top-level professionals working in startups often find it challenging to adapt to the cultural norms of traditional sector companies. As a result, a significant number of senior startup executives prefer to remain within the startup ecosystem.
One notable example is Abhishek Arun, who previously served as the Chief Operating Officer (COO) of Paytm Payments Bank. Arun has now transitioned to M2P Fintech, where he is the President of platform Strategy & Commercialization.
Similarly, Cherian Thomas, formerly the Senior Vice President for international business at Byju’s, has ascended to the position of CEO at Impending Inc., providing another compelling illustration of this trend.
Therefore, there is a great opportunity for all startups and unicorns to attract top-level CXO candidates within their own sectors and ranks. The movement of talent within the ecosystem provides fertile ground for startups to recruit experienced executives. However, despite this trend, some senior executives from unicorns and soonicorns are considering opportunities with traditional businesses. This shift in interest may be influenced by factors such as the current funding climate and market projections.
In conclusion, the Indian startup ecosystem, particularly unicorn startups, is actively hiring talent, showcasing their resilience and continued growth trajectory amidst challenges. However, the question arises: Is this aggressive hiring a testament to long-term growth confidence, or is it merely talent poaching within a closed loop of unicorns? Let us know your thoughts in the comment section below!
