India's startup ecosystem is experiencing a significant revival, with a 32% year-on-year increase in hiring as of April 2025, indicating a shift towards sustainable and innovation-driven growth, according to a report released on Monday by job platform foundit (formerly known as Monster APAC & ME).

This surge is part of a larger trend in India's white-collar job market, which has grown by 18% year-on-year, the report highlights. Startups are regaining hiring confidence, fueled by a 22% rise in new company registrations over the past year.

“There’s a clear transformation in how startups are scaling,” stated V. Suresh, CEO of foundit. “Growth is no longer confined to traditional metro areas. We are witnessing strong momentum in Tier-2 cities, along with a significant shift towards hiring experienced professionals to ensure long-term sustainability.”

The IT services sector continues to lead startup hiring, now representing 32% of job postings, up from 23% last year. The healthcare sector has also seen growth, increasing from 6% to 9%, reflecting heightened investment in deep tech and health innovations.

In contrast, sectors such as media, entertainment, and edtech are experiencing a downturn, indicating a shift in priorities within the startup landscape.

A notable geographical shift is also taking place, with job shares in Tier-2 cities rising from 9% in April 2024 to 31% in April 2025. Cities like Coimbatore, Jaipur, Indore, Lucknow, and Bhubaneswar are emerging as dynamic startup hubs, while major metros like Bengaluru, Delhi/NCR, and Mumbai are witnessing declines. Chennai and Hyderabad have maintained stable contributions.

Startups are increasingly valuing experience in their hiring practices. The recruitment of freshers (0-3 years' experience) has decreased from 53% to 41%, while the demand for professionals with 4-10 years of experience has surged, now accounting for 43% of total startup hiring.

“This evolution reflects a shift towards thoughtful, sustainable growth — focusing on building resilient teams rather than pursuing rapid expansion,” Suresh added.