India’s E-commerce and Tech Startups Show Signs of Recovery
India’s e-commerce and tech startup sectors are showing signs of steady recovery, with hiring picking up again after a prolonged funding slowdown. According to the Employment Outlook Report (EOR) for HY1 (April–September FY 26) by TeamLease Services, 69% of employers in these industries plan to increase their workforce in the first half of FY 25-26. This growth is being driven by a renewed momentum in AI-driven product scaling, growth marketing, and cloud-native engineering.
The Net Employment Change (NEC) for the e-commerce and tech startup sector is projected at +6.9% for the first half of FY25–26, ranking among the top three in job creation alongside the electric vehicle (7.1%) and automotive industries (+6.9%). The expansion is largely driven by platform-first, B2C, and D2C startups prioritizing operational efficiency and sustainable unit economics.
Hiring in the e-commerce and tech startup space is centered around high-impact technology and product roles, with a strong demand for DevOps engineers, Product managers, and Full-stack developers. This reflects a clear transition in the industry from scale-at-any-cost hiring to more value-driven workforce strategies. Companies are preparing to meet evolving digital consumption patterns by building agile teams that can deliver faster innovation and better customer experiences.
Despite a more cautious funding landscape, hiring intent in the sector remains the strongest across all industries surveyed. About 12% of companies plan to reduce headcount, mainly in post-Series A and B firms focused on cost control and runway management. On the other hand, only 19% expect no change, indicating a gradual return of business confidence and hiring momentum.
Geographically, Bengaluru leads with 30% of the planned hiring, followed by Mumbai at 25% and Chennai at 23%. These cities remain key hubs for startups due to their talent base and established digital ecosystems.
Looking at job functions, 73% of the new roles are expected in sales and marketing, followed by 63% in information technology, and 50% in blue-collar jobs. The high share of tech and customer-facing roles reflects how companies are focusing on building better products and reaching users more effectively.
“We’re witnessing a clear shift in how India’s tech startups approach growth and talent,” said Kartik Narayan, CEO-Staffing, TeamLease Services. “The focus is moving away from aggressive expansion to building sustainable, value-driven business models.”
The report by TeamLease Services leverages extensive primary and secondary research, drawing insights from over 1,263 employers across 23 industries and 20 cities. It shows how India’s e-commerce and tech sectors are slowly moving past the funding freeze and returning to a growth mindset. With hiring focused on high-impact roles and steady demand in key cities, these sectors are playing an important role in India’s digital economy journey.
