Tier-2 cities emerging as new startup hotspots

Bengaluru (21% in April '25 vs 31% in April '24), Delhi/NCR, and Mumbai recorded steep declines in startup job share, while Chennai and Hyderabad held steady.
Startup TN
A recent startup summit held by the TN government.File Photo
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BENGALURU: Startups are now looking beyond metros for talent as the job share of tier-2 cities has surged from 9% in April 2024 to 31% in April 2025. This three-fold rise shows a shift in the country's start-up hiring.

Coimbatore, Indore, Lucknow and Bhubaneswar are now the preferred locations for startups.

Also, the latest findings by jobs platform foundit shows that startup hiring has surged 32% y-o-y in April and 12% over the last three months. The hiring momentum is further reinforced by a 22% increase in new start-up registration over the past year.

"There is a notable shift in the way start-ups are scaling in India," said V Suresh, CEO of foundit.

"Growth is no longer confined to major metropolitan areas; instead, we are witnessing a robust expansion into Tier-2 cities, signalling a more balanced and inclusive model of growth. At the same time, there is an increasing emphasis on recruiting seasoned professionals, reflecting a strategic focus on long-term sustainability," he added.

Meanwhile, Bengaluru (21% in April '25 vs 31% in April '24), Delhi/NCR, and Mumbai recorded steep declines in startup job share, while Chennai and Hyderabad held steady.

Interestingly, there has been a shift in sectoral hiring patterns as IT services now account for 32% of all start-up job postings- up from 23% last year. Healthcare has grown from 6% to 9%. But consumer-centric sectors like media and entertainment (3% in April '25 vs 6% in April '24) and edtech (5% in April'25 vs 8% in April '24) have seen declines.

Experience gaining in preference

Startups are also increasingly prioritising experience, as fresher hiring has seen a decline (0-3 years' experience) from 53% to 41% y-o-y in April 2025. This shift reflects a growing demand for specialised skills across all levels, with roles for mid-career professionals (4-6 years and 7-10 years' experience) rising to 28% and 15%, respectively, it said.

The report also points out that demand for senior professionals (11-15 years and 15+ years' experience) is growing, making up 11% and 5% of job postings, signalling a need for leadership and strategic expertise.

While roles for candidates with 0-3 years and 4-6 years of experience saw a slight dip of 2% month-over-month, y-o-y growth remains positive at 20% and 15%, respectively.

In contrast, opportunities for those with 7-10 years of experience saw a 3% m-o-m increase and a significant 34% y-o-y surge.

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