A recent survey across diverse sectors and stages within the startup landscape sheds light on a noteworthy trend: a slowdown in tech salary increments and an upsurge in employee retention rates.
It was conducted on around 250 startups founders, claims study.
According to the study, approximately 46% of participating startup founders reported a decline in employee turnover over the past year, signifying a significant improvement in retention rates. Coinciding with this trend, around 50% noted a notable ease in hiring tech roles, attributed to the cooling off of tech salaries in comparison to the preceding year.
Interestingly, the study revealed that approximately one in three founders (33.5%) currently operate with a runway of less than 12 months, pointing towards potential challenges in sustaining operations amid the ongoing funding limitations.
The survey identified revenue growth as the primary concern for a substantial majority of founders (65%). Additionally, 58% aspired to achieve profitability in the near-to-medium term, with 18% affirming that they have already attained this significant milestone.
With an eye on profitability, entrepreneurs are recalibrating their financial strategies. Around 38% of respondents acknowledged curtailing marketing expenses as the most significant measure in reducing the burn rate over the past year. This shift towards a more conservative spending pattern reflects a collective pursuit of financial sustainability and improved economics within the Indian startup ecosystem.
As the report indicates, this trend aligns with the larger trajectory of several established startups and venture-backed unicorns striving for profitability, heralding a transformation towards sustainable growth practices within the dynamic landscape of the Indian startup ecosystem.
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