Bengaluru, May 5: 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. SBI Massive Hiring Plan: State Bank of India Chairman CS Setty Announces Recruitment of 18,000 Personnel in FY26, Largest Recruitment in Decade.

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. Cognizant To Hire 20,000 Freshers in 2025, More Than Double From Last Year’s Recruitment.

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.

(The above story first appeared on LatestLY on May 05, 2025 12:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).