You are here: Home » Companies » Start-ups » News
Business Standard

97% start-ups to go on a hiring spree this year: Report


BS Reporter  |  Mumbai 

Hiring image via Shutterstock
Hiring image via Shutterstock

Over 90 per cent of start-ups will go on a hiring spree this year, with 28 per cent of the jobs being allocated to strengthening their technology teams, a report released by InnoVen Capital said.

"More than 5,000 jobs are expected to be created by 130 start-ups in the next 12 months," the report said. The report surveyed 130 startups across stages of funding and found that 41 per cent of venture-capital-funded startups had women founders or CXO-level executives, the number dropped to 31 per cent for boot-strapped ventures and 29 per cent at the angel-funding stage. Bootstrap is a situation in which an entrepreneur starts a company with little capital. An individual is said to be bootstrapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company. An angel investor is an investor who provides financial backing for small startups or entrepreneurs. Angel investors are usually found among an entrepreneur's family and friends. A venture capitalist either provides capital to startups or supports small that wish to expand but do not have access to equities markets. Venture capitalists are willing to invest in such because they can earn a massive return on their investments if these are a success. Private equity firms mostly buy mature companies that are already established. Private equity firms buy these companies and streamline operations to increase revenues. Venture capital firms mostly invest in start-ups with high growth potential.

The report said these 130 companies are expected to raise $700 million this year.

The firms surveyed, however, said that even though hiring may be healthy, 72 per cent believed that the education system isn't training students to match the skill set needed right now.

The report stated that customer-focused e-commerce companies will continue to flourish. "In FY16, more than 50 per cent bootstrapped startups and 45 per cent angel funded startups expected to turn profitable whereas only 22 per cent venture-capital-funded companies expected to turn profitable," the report stated.

This may be helped by 76 per cent of the companies think that next year the political environment will play a part and make it even better for business.

Crowdfunding may also start to find its feet in India with "more than 50 per cent of bootstrapped companies exploring or are interested in crowdfunding".

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 20 2016. 00:42 IST