National Startup Day: Changing talent strategies for 2025 and beyond

With exponential growth in its startup sector, India is now the world’s third-largest startup ecosystem. The number of Department for Promotion of Industry and Internal Trade (DPIIT) -recognised startups has grown from around 500 in 2016 to an impressive 1,59,157 as of January 15.
Additionally, startups have created over 16.6 lakh direct jobs, significantly contributing to employment generation between 2016 and October 2024. Leading industries in job creation include IT Services (2.04 lakh jobs), Healthcare & Lifesciences (1.47 lakh jobs), and Professional & Commercial Services (94,000 jobs), with the Travel & Tourism sector contributing 23,828 jobs.
With a projected 20% to 30% surge in hiring driven by a 14% year-on-year increase in startup funding, HR practices in travel-tech startups in India are poised for a transformative shift this year.
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Skill-based hiring
With startups prioritising specialised expertise over traditional qualifications, skill-based hiring will grow in 2025 in travel tech, says Rikant Pittie, CEO & Co-founder, EaseMyTrip. He emphasises the integration of AI and advanced analytics in candidate assessment will redefine recruitment strategies, making hiring more data-driven and efficient.
Yuvraj Shidhaye, Founder and Director of TreadBinary, echoes this sentiment, highlighting that startups must prioritise upskilling and reskilling programs to align with market demands.
“A strong emphasis on skills development will be a key priority as startups continue to invest in upskilling and reskilling their employees to stay competitive in an ever-changing landscape. This focus on continuous learning will empower employees to take on diverse roles, driving innovation and growth within the company,” Shidhaye adds.
Government policies are expected to play a vital role, providing incentives for skill development and creating regulatory frameworks that ensure fair treatment for all workers, especially in the growing gig economy. Together, startups and government will shape a resilient, forward-thinking workforce.
A new approach to talent acquisition
Kartik Narayan, CEO - Staffing, TeamLease, highlights that startups will see a significant shift in their talent acquisition and workforce management approaches.
“The gig economy is set to expand dramatically, offering startups a flexible and cost-efficient way to scale operations without the commitment of long-term contracts. This growing trend of short-term, project-based work will be pivotal in industries that demand agility and adaptability,” he says.
Moreover, skilling and upskilling will play an important role in the success of startup workforces in 2025. Rather than simply hiring and deploying workers, startups will focus on training and retaining talent to enhance productivity and long-term sustainability. Meanwhile, specialised skills will remain in high demand, particularly in technology-driven sectors like AI, IoT, and cloud.
Swati Bhargava, Co-founder of CashKaro and EarnKaro, points out that startups have rapidly scaled and reshaped talent acquisition practices. “Companies traditionally focused on hiring from specific industries or sought candidates with degrees from Tier-I or Tier-II business schools are now embracing a more diverse talent pool.”
According to industry reports, freshers with 0-3 years of experience accounted for over 50% of new hires across IT, BFSI, and manufacturing sectors in 2024. There has been a 31% rise in overall hiring, and late-stage startups face challenges in attracting experienced mid-to-senior talent. “As India’s startup ecosystem continues to thrive with a 37% increase in new businesses last year, we must adapt our hiring strategies to build a resilient and innovative workforce that aligns with this dynamic landscape,” Swati adds.
Bridging the skill gap
This skills gap is a major problem despite India's growing population, particularly for startups that need workers with the correct knowledge and vision for long-term success. Finding personnel who can spur innovation and long-term success is becoming more important than just filling positions.
Startups must concentrate on important tactics to close this gap, like encouraging continued skill development and coordinating hiring with corporate objectives.
Abhishek Saxena, MD and Co-founder of Omnicard, highlights the widening skills gap in the startup ecosystem. “Startups are struggling to find talent with the right knowledge and vision for long-term success,” he observes.
Saxena recommends encouraging continuous skill development and aligning hiring with corporate objectives to address this issue.
Employee well-being—both mental and physical—will take centre stage, with a stronger emphasis on sustainable workplace practices. Embedding diversity, equity, inclusion, and belonging (DEIB) at the core of their talent strategies, fostering dynamic and inclusive work environments.
Sourabh Deorah, CEO & Co-founder of AdvantageClub.ai, emphasises the importance of offering personalised rewards, fostering open communication, and creating a culture where every team member feels a sense of belonging and care. “It’s not just about recognition; it’s about integrating engagement into every aspect of the employee experience—from wellness programs and flexible benefits to opportunities for collaboration and growth. When these elements come together, they create an ecosystem where employees are empowered, motivated, and ready to drive the startup’s vision,” he explains.
As these forward-looking trends unfold, India is eager to witness how they will shape the future of the travel-tech industry, driving innovation and sustainable growth. By embracing skill-based hiring, addressing the skills gap, and fostering inclusive workplaces, startups will shape a resilient workforce that drives innovation and sustainable growth.