December 11, 2023

As funds dry up, hiring in tech startup sector expected to take a backseat

As the Indian tech startup ecosystem faces a significant dip in funding, the consequences are rippling through the hiring landscape, prompting startups to adopt a more strategic and cautious approach to recruitment. 


The Annual India Startup Report: 2023, released by Tracxn, reveals a notable decline in funding across all stages, with late-stage funding plummeting over 73%, early-stage funding by 70%, and seed-stage funding by 60%. 

This funding downturn is forcing tech startups to streamline their operations, with a particular focus on minimizing expenses related to hiring new talent. Startups are now hiring at a substantially reduced pace compared to previous years, leading to extended timelines for decision-making in the hiring process. 

As witnessed, companies are now prioritizing employee upskilling and in-house productivity over rapid expansion, resulting in a more deliberate and strategic hiring scenario.  

Bhavesh Goswami, Founder and CEO of CloudThat, predicts that adaptable startups will thrive by adjusting their business models to meet evolving investor expectations, demonstrating a keen awareness of market dynamics and a commitment to building resilient, customer-centric enterprises. Instead of traditional hiring, companies may focus on upskilling existing talent with new-age skills and integrating technologies like generative AI to optimize productivity. 

Niche skills such as AI/ML, cybersecurity, data science, cloud computing, and blockchain are expected to witness increased demand, presenting new opportunities for tech startup aspirants. While tech graduates may find limited opportunities, this downturn could be advantageous for startups that are still in a hiring position. With less competition for top talent, startups can potentially build high-quality teams that might have been challenging to assemble in a healthier market.  

A decrease in startup funding is reshaping the hiring landscape, pushing tech startups towards sustainable growth models, and fostering a more selective and strategic approach to talent acquisition.  

You can read more on this article from the  The Week penned by Bhavesh Goswami    

About CloudThat

Established in 2011, CloudThat is a leading Cloud Training and Cloud Consulting services provider in India, USA, Asia, Europe, and Africa. Being a pioneer in the Cloud domain, CloudThat has special expertise in catering to mid-market and enterprise clients in all the major Cloud service providers like AWS, Microsoft, GCP, VMware, Databricks, HP, and more. Uniquely positioned to be a single source for both training and consulting for cloud technologies like Cloud Migration, Data Platforms, DevOps, IoT, and the latest technologies like AI/ML, it is a top-tier partner with AWS and Microsoft, winning more than 8 awards combined in 11 years. Recently, it was recognized as the ‘Think Big' partner from AWS and won the Microsoft Superstars FY 2023 award in Asia & India. Leveraging their position as a leader in the market, CloudThat has trained 650k+ professionals in 500+ cloud certifications and delivered 300+ consulting projects for 100+ corporates in 28+ countries.

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