Delhi-based unicorns on hiring spree despite funding winter; over 50,000 employees join startups | Mint
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Business News/ Companies / Start-ups/  Delhi-based unicorns on hiring spree despite funding winter; over 50,000 employees join startups
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Delhi-based unicorns on hiring spree despite funding winter; over 50,000 employees join startups

Delhi-based unicorns in India's startup ecosystem saw an increase of 52,420 employees between September 2022 and July 2023, according to a report. Bengaluru's startup workforce declined by more than 40,000 during the same period.

India's 111 unicorns hired 3.7 lakh employees between September 2022 and July 2023Premium
India's 111 unicorns hired 3.7 lakh employees between September 2022 and July 2023

A surprising hiring trend was seen in India's startup ecosystem in the national capital Delhi despite the global funding winter. According to a report by PrivateCircle Research, the workforce in Delhi-based unicorns saw an increase of 52,420 employees between September 2022 and July 2023. Some of the mass recruiters were PhysicsWallah, PolicyBazaar, Delhivery, and BharatPe. Across the country, the 111 unicorns hired 3.7 lakh employees in the same period.

However, the report also highlighted that 3.6 lakh employees left their jobs across the Indian unicorn startups in the same period.

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India's tech hub Bengaluru saw a massive shrink in workforce during the aforementioned period. The workforce in Bengaluru's startup declined by more than 40,000.

In Delhi-NCR's unicorns, 1.8 lakh employees left the jobs in absolute terms, followed by Bengaluru which saw 1.2 lakh staff leave either due to better opportunities or layoffs.

On average, 111 unicorns had an attrition rate of 4.72% from September 2022 to July 2023.

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However, only three Indian unicorns ((Zerodha, Zoho, and Hike) managed to maintain attrition rates under 1%.

The hiring at unicorn startups picked up from April 2023 as per the report. Some of the unicorns that saw significant workforce increments in July were BigBasket, Pb Fintech, etc.

Overall, 111 Indian unicorn startups employed 4,42,714 people in July this year, a net increase of 12,765 from 4,29,949 employees recorded in September 2022.

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The PrivateCircle Research report included employees for whom PF (provident fund) contributions were made.

Notably, edtech firm Physics Wallah may lay off up to 120 employees due to performance issues, the company recently said.

India's shrinking IT hiring here to stay, drastic change in thinking needed

The company in a statement said that less than 0.8% of its total workforce will be impacted due to the performance review exercise.

The company has around 12,000 employees. This is the first mass lay-off that has been announced by Physics Wallah (PW).

 

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ABOUT THE AUTHOR
Mansi Jaswal
I write about gender-related issues, women's rights, women empowerment, gender equality, women's health topics, and their wealth management. Also, profiling women who have fought all odds to make their own identities in their own rights. Before Mint, I worked at Business Today and Business Standard. I studied journalism at IIMC, Delhi. Got a story idea? Email me at mansi.jaswal@htdigital.in
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Published: 23 Nov 2023, 11:03 AM IST
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