India’s startup ecosystem is evolving beyond rapid expansion and mass hiring, with firms taking a more measured approach to talent acquisition. As funding environments become more disciplined and business models mature, startups are prioritising roles in AI, SaaS, data, and mid-level functions that directly support growth, product development, and operational efficiency.
This focused hiring approach continued to support startup job creation in 2026, with openings projected to rise 12% year-on-year from 116,080 in April 2025 to 130,010 in April 2026, adding nearly 14,000 jobs over the year.
India’s startup ecosystem also continued to expand, with the total number of startups rising to nearly 172,000 in 2026 from 161,150 in 2025, reflecting sustained sector growth despite a more selective hiring environment.
These findings were released by jobs and talent platform foundit as part of its latest foundit Insights Tracker.
The report also shows India’s startup base continuing to expand, rising to nearly 172,000 startups in 2026 from 161,150 startups in 2025, pointing to sustained sector momentum despite a more selective hiring environment.
Technology-led hiring remains the strongest growth engine. IT services accounted for 34% of all startup jobs in April 2026, up from 32% a year ago, making it the largest contributor to startup employment. Emerging technologies, including AI and SaaS, contributed around 14% of startup hiring.
Within technology hiring, AI and data roles now account for 32% of startup tech jobs, up from 24% in the previous year, indicating that nearly one-third of all technology hiring in startups is now AI-led.
While startup hiring surged 32% in 2025, growth has now moderated to a more sustainable 12% in 2026. Over the last three months alone, startup hiring recorded a 6% increase, signaling continued confidence in selective expansion.
BFSI and fintech accounted for 12% of startup jobs, while healthcare increased its share to 11%, reflecting growing demand for specialised roles across financial services, digital health, and consulting-driven businesses.
A notable shift is also visible in India’s geographic hiring spread. Tier-2 and Tier-3 cities now account for 36% of startup jobs, up sharply from just 9% in April 2024. This reflects expanding talent pools outside traditional metros, lower operational costs, and the growing acceptance of distributed work models.
Emerging cities such as Jaipur and Indore each contribute nearly 3% of startup jobs, while Kochi and Coimbatore account for around 2% each. Together, these cities represent nearly 12% of new startup formations.
Bengaluru continues to lead startup hiring among metro cities with a 20% share, but its dominance is gradually declining as activity spreads to other locations. Hyderabad has emerged as a strong growth market, doubling its startup hiring share from 5% in April 2024 to 10% in April 2026, matching Mumbai’s share and overtaking Pune.
Hiring trends also indicate a clear preference for experienced talent. Entry-level hiring declined from 41% in 2025 to 36% in 2026, while professionals with 4–10 years of experience now account for nearly 48% of startup hiring. This means almost one in two startup hires in 2026 are mid-level professionals, particularly across AI, product, engineering, consulting, sales, and operations roles.
On the compensation front, nearly 70% of startup roles remain concentrated in the Rs 3 lakh–Rs 10 lakh annual salary bracket, highlighting strong demand for execution-focused mid-market talent. Roles paying above Rs 15 lakh account for around 12% of hiring, largely driven by demand for specialised skills in AI, product leadership, technology, and data science.
“India’s startup hiring market is entering a more mature phase. Startups are no longer hiring purely for scale; they are hiring for capability, productivity, and business impact,” said Tarun Sinha, CEO, foundit.
He added that the rise of AI-led roles, stronger demand for mid-level professionals, and growing participation from Tier-2 and Tier-3 cities indicate that the ecosystem is becoming deeper, more distributed, and more skills-driven.
Overall, the findings indicate a shift toward a more skill-driven and selective hiring phase in the startup ecosystem, with a steady focus on specialised roles and sustainable growth.
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