Tech startup ramp up hiring as funding winter warms up, shows data

The tech startups cohort, overall, has moved from a closing headcount of 2.5 lakh in FY21 to 5.9 lakh in FY25, registering a collective 7.1 lakh gross hiring count during the five years

India’s tech startup ecosystem is showing early signs of a slow but steady recovery, as companies cautiously expand their hiring capacity following a prolonged funding winter. According to data from Xpheno, a specialist staffing firm, the total headcount for funded startups closed at 5.9 lakh in FY25 and is projected to rise to 6.7 lakh in FY26. 

While hiring trends are not expected to shift dramatically, there is a discernible upward bias. FY25 saw net additions of 0.6 lakh, and projections for FY26 suggest a further increase of 0.8 lakh. The overall tech startup cohort has grown steadily over the