After grappling with two years of layoffs and hiring freezes, India’s start-up ecosystem appears to be taking a decisive turn. Layoffs dropped by a staggering 67 per cent in the first half of 2025 compared to last year, sliding from over 7,100 job losses across 25 companies to just 2,387 across 12, as highlighted by MoneyControl citing Layoffs.fyi data.

What stands out even more is the renewed hiring push. According to MoneyControl, recruitment platforms and experts report a 35–40 per cent rise in hiring activity, surpassing earlier expectations of 20–30 per cent. 

This momentum is most apparent in growth-stage start-ups operating in sectors such as Software as a Service (SaaS), green energy, healthtech, logistics, consumer and Information Technology (IT). Meanwhile, demand for roles is also rising in emerging areas like electric vehicles (EV), Generative Artificial Intelligence (GenAI) and climate tech, especially in Tier-II cities.

Karthikeyan Kesavan, Director and Head of Business – Permanent Recruitment at Adecco India, noted, “We see a 35 per cent YoY surge in start-up hiring — the highest in two years.” 

Much of this is fuelled by start-ups that have moved past initial product-market-fit, scaling cautiously. Late-stage companies too are broadening selectively, while early-stage players remain watchful.

Neeti Sharma, Chief Executive Officer of TeamLease Digital, remarked that although it is “not a full recovery,” hiring is clearly gaining ground, particularly in tech, product, and growth roles.

Driving this turnaround is a modest funding revival, sharper business focus, and a retreat from reckless blitzscaling. The January–March quarter alone brought in around $2.5 billion for Indian start-ups, restoring confidence for longer-term bets.

Crucially, hiring is no longer just about plugging old gaps. Around 70 per cent of growth-stage firms are rebuilding tech and operations teams, but many are also creating fresh roles, pushing into new products and markets. The emergence of new start-ups, up by 20 per cent in H1 2025 (especially in Tier-II cities), is adding to this job wave.

With more stable salaries, selective ESOPs (Employee Stock Ownership Plans), and hikes reaching up to 40 per cent in top tech positions, this phase marks a shift from survival to strategic growth, and a steadier platform for India’s start-up ambitions.