A recent report by PrivateCircle, a private market intelligence firm, reveals that Delhi-NCR unicorn startups hired more employees than Bengaluru’s startups between August 2023 and August 2024. This marks a significant shift in hiring trends among India’s leading startup hubs, even as the overall workforce in unicorn companies shrank during this period.
Delhi-NCR Leads in Startup Hiring
Delhi-NCR unicorns, including prominent companies like PolicyBazaar, Blinkit, and Zomato, added a total of 18,554 new employees over the year. This made the region the top choice for hiring among unicorn startups in India.
In comparison, Bengaluru—often referred to as India’s startup capital—only added 2,384 employees during the same time. Mumbai, another major startup hub, faced a net decline of 7,024 employees, highlighting a contrasting trend in hiring activity.
Mumbai’s Decline and Delhi-NCR’s Growth
Mumbai’s drop in workforce numbers is partly attributed to high-growth startups like Zepto relocating their headquarters to Bengaluru. Despite this, Delhi-NCR has managed to attract fresh talent and maintain its position as a key region for startup employment.
Although Bengaluru continues to host the highest number of unicorns in India (42), compared to Delhi-NCR’s 26, the latter has shown remarkable growth in onboarding employees.
Chennai Emerges as Startup Hub
Chennai also stood out in the report, recording a net increase of 4,785 employees in unicorn companies. The city’s growing appeal lies in its ability to attract global capability centers (GCCs) of international corporations, boosting local job opportunities and contributing to its rise as a promising startup hub.
Despite the hiring gains in Delhi-NCR and Chennai, India’s 116 unicorn startups collectively experienced a workforce reduction of about 6,700 employees over the past year. In August 2024, the total number of employees in unicorn companies stood at 410,829, down from 417,561 in August 2023.
This decline can be largely attributed to the mass layoffs that occurred across various companies during the year. While some unicorns expanded into new markets and achieved significant revenue growth, they maintained stable employee numbers rather than increasing their workforce.
Murali Logananthan, Director of Research at PrivateCircle, emphasized the stability of staffing levels among India’s unicorns despite their growth. He stated, “Unicorns continue to be large employers in India. We find that the compounded revenue growth among most unicorns has been in high double digits over a two-year period, yet these unicorns have maintained stable employee numbers.”
This suggests that while hiring activity has varied across regions, many unicorns are focusing on optimizing their workforce to align with business expansion and market demands.
The Bigger Picture
The hiring trends highlighted in this report reflect a dynamic landscape for India’s startup ecosystem. Delhi-NCR’s rise as a leading region for unicorn employment underscores its growing importance as a startup hub. Meanwhile, Bengaluru and Mumbai face challenges in retaining their workforce, signaling a need for strategic adjustments.
Chennai’s emergence as a key player further diversifies India’s startup geography, offering new opportunities for growth and innovation. As the country’s unicorns navigate market changes, these trends provide valuable insights into the evolving priorities of India’s startup economy.
With a focus on efficiency and sustainability, unicorn companies are likely to continue shaping India’s employment landscape in the years to come.
