India’s unicorn startups experienced a net workforce reduction of 6,732 employees between August 2023 and August 2024, as per an analysis by PrivateCircle Research. The study found that 116 unicorns employed 4,10,829 people as of August 2024, compared to 4,17,561 in the same month the previous year. The analysis included employees with provident fund contributions, highlighting trends in hiring and attrition.
The report noted an average attrition rate of 4.5 per cent among unicorns during this period. Despite the decrease, unicorn startups remained significant employers, with stable workforce levels indicating efficient human capital utilisation even during high-growth phases. The monthly net workforce change across unicorns ranged between -0.9 per cent and 2.5 per cent during the time under review, according to the study.
Delhi NCR led hiring activity across major startup hubs, with the region recording a net addition of 18,554 employees between August 2023 and August 2024. Major recruiters from the area included PolicyBazaar, Blinkit, and Zomato. Chennai-based unicorns recorded the second-highest net additions, hiring 4,785 employees, followed by Bengaluru with 2,384 net new hires.
In contrast, Mumbai-based unicorns experienced the largest workforce reduction, with a net decline of 7,024 employees. Pune and Hyderabad also saw workforce reductions, with net declines of 643 and 66 employees, respectively.
Hiring activity peaked in March 2024, with 42,000 employees added in a single month. However, the highest attrition occurred in September 2023, when 39,000 employees left unicorn startups, possibly due to layoffs or resignations. The study excluded unicorns like Polygon, Hasura, and 5irechain, which are headquartered outside India, as well as Rivigo and Shopclues, which were acquired at valuations below $1 billion.
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