Rs 27,435 Crore: Indian Startups Spend This Much On Employees, See Who Tops The List

Union Minister Piyush Goyal, speaking at the Startup Mahakumbh 2025 event on April 3, 2025, slammed Indian startups. Goyal said, instead of focusing on the technological growth of the nation people are satisfied with ice cream brand startups. This has sparked a debate on the Indian startup business model.

However, a report by Private Circle shows that India's unicorn startups are making significant investments in employee wages and benefits, reflecting their commitment to attracting and retaining top talent.

The cumulative spending on employees by these startups is remarkable, totalling Rs 27,435 crore. This figure is aggregated from leading startups such as Paytm , PhonePe, Byju’s, Zoho, and others.

Top 10 Unicorns Employee Spend

According to the report, Paytm leads the list with Rs 4,589 crore in employee spending for FY24, followed by PhonePe (Rs 3,603 crore) and Byju’s (Rs 3,552 crore for FY22).

Other major spenders include Zoho (Rs 2,722 crore), Swiggy, Citius Tech (Rs 2,226 crore), Fractal Analytics (Rs 1,833 crore), Zomato (Rs Rs 1,659 crore), PolicyBazaar (Rs 1,644 cr), and Freshworks (Rs 1,595 cr).

However, data for some startups like 5irechain, Polygon, and InMobi was unavailable due to their offshore or LLP structures.  

The analysis highlights that fintech and consumer tech companies are the biggest spenders on employees. Paytm and PhonePe’s high expenses suggest a reliance on large workforces for operations and customer service.

Similarly, food delivery giants Swiggy and Zomato continue investing in their workforce, given their labour-intensive business models.

Also Read: No, Piyush Goyal Didn't Run Down Indian Startups: 5 Things He Said That Should Go Viral

Edtech and SaaS companies also maintain high employee costs, with BYJU's, Zoho, and Freshworks leading the way.

Meanwhile, deep tech and healthcare startups like Citius Tech and Fractal Analytics are increasing their spending, reflecting the rising demand for AI, healthcare, and analytics professionals, the report said.  

"Higher employee benefit expenses indicate a company that invests in its workforce, meaning better salaries, bonuses, and perks. Fintech and SaaS firms are currently the most lucrative for engineers and business professionals, given their high spending per employee," the report said.

Employee Spending In Indian unicorns

"As the Indian startup ecosystem matures, employee benefit expenses will increasingly reflect financial discipline rather than just expansion among Indian unicorns. Fintech & SaaS will continue high-value hiring as competition for tech talent increases," Private Circle report said.

"Edtech’s salary bubble may shrink as companies focus on streamlining operations. Quick commerce & e-commerce will keep growing, but hiring will be tactical rather than reckless," it added.

Indian Startups Ecosystem

The number of DPIIT-recognised startups in India has increased over time, rising from roughly 502 in 2016 to 1,57,706 as of December 31, 2024.  As of December 31, 2024, these startups have created more than 17.28 lakh direct jobs, with the IT Services sector leading with 2.10 lakh jobs, followed by Healthcare & Lifesciences (1.51 lakh) and Professional & Commercial Services (96, 474).