India's start-up hiring to grow 15%, led by AI roles
What's the story
Hiring in India's start-up ecosystem is projected to grow by 8-15% in FY26, according to recruitment platforms. The growth is primarily driven by the rising demand for artificial intelligence (AI) talent and technology roles as companies ramp up investments in their AI capabilities and digital platforms. Peush Saproo, Associate Director & Head Sales at Adecco India, told Moneycontrol that "the hiring outlook for India's start-up ecosystem in FY26 appears cautiously positive."
Job market trends
Strongest demand for tech and product roles
A major chunk of the hiring demand is focused on technology-driven roles, especially those related to AI and product development. Sachin Alug, CEO of NLB Services, said "Technology and product roles are where demand is strongest, especially for AI/ML engineers, data scientists, DevOps engineers and product managers." He added that start-ups are investing in AI capabilities and platform development to fuel their growth.
Sectoral growth
Consumer-facing sectors also driving demand
Apart from AI and technology talent, consumer-facing sectors like quick commerce, fintech, e-commerce, and logistics are also driving the demand for both tech and operational roles. This is as companies look to expand their delivery networks, strengthen supply chains and scale their platforms. Adecco said 60-65% of recent start-up hiring mandates are concentrated in tech-driven sectors such as AI, SaaS (software as a service), fintech (financial technology), healthtech (healthcare technology), climate tech (climate change-focused technology) and electric mobility.
Start-up expansion
Growth-stage start-ups leading the hiring momentum
The hiring momentum is largely coming from growth-stage start-ups, especially those that have raised Series B to Series D funding and are expanding operations into new markets. Balasubramanian A, Senior VP at TeamLease Services, said "growth-stage start-ups are driving the majority of hiring activity." Early-stage companies are still hiring cautiously while late-stage firms are focusing more on operational efficiency and profitability.
Recruitment strategy
Start-ups are selectively expanding headcount
Recruitment firms say a lot of the current hiring is linked to new headcount expansion and not just replacing roles cut earlier. Saproo said "a significant portion of current hiring is linked to selective expansion as start-ups regain stability and prioritize growth in core areas." Alug added while some backfilling is happening, most companies are building teams aligned with product innovation, AI capabilities and business expansion plans.
Compensation trends
Salary growth stabilizing post funding boom
Salary growth in the start-up ecosystem has also stabilized after the steep salary hikes during the funding boom. Adecco said salary increases are now in the 8-12% range, compared to 20-40% jumps during peak hiring season of 2021-22. However, professionals with specialized skills in AI, machine learning and data engineering still command premium pay due to persistent talent shortages.