Hiring at AI-based startups on the rise
Many AI startups raised big rounds of capital from PE funds in recent months
image for illustrative purpose
Though the funding winter continues, there are many startups, which have raised money. We have seen many AI-focused startups raising money this year. So, wherever PE & VC funds see value, they continue to invest. Therefore, the overall sentiment remains good - Siva Prasad Nanduri, CEO, Diensten Tech, tells Bizz Buzz
Bengaluru: Hiring in the startup ecosystem has started to pick up in selective pockets with AI-focussed startups and those which are able to raise external capital leading the show.
According to HR experts, though overall hiring sentiment in the startup ecosystem remains subdued, specific pockets have started hiring in recent months. They also said that senior talent and mid-level employees are not willing to join startups owing to mass layoffs by unicorns last year.
“Though the funding winter continues, there are many startups which have raised money. We have seen many AI (artificial intelligence)-focused startups raising money this year. So, wherever PE & VC funds see value, they continue to invest. Therefore, the overall sentiment remains good,” Siva Prasad Nanduri, CEO of staffing firm, Diensten Tech, told Bizz Buzz.
Despite the ongoing startup winter, AI (artificial intelligence)-powered ventures have defied the trend. Especially, generative AI-focussed startups have been able to raise money from private equity and venture capital firms.
Generative AI (GenAI) startups have bucked the trend, raising a record $10 billion in 2023, according to a report by Global Data. This marks a 110 per cent increase compared to 2021.
Last month, Krutrim, an artificial intelligence (AI) venture co-founded by Bhavish Aggarwal of Ola, achieved unicorn status after raising $50 million from notable investors, such as Matrix Partners India. Unicorn is a company whose valuation touches $1 billion or more.
Similarly, AiDash, a startup which uses artificial intelligence (AI) and satellites to spot weather risks on power lines last month, raised $50 million in Series C funding led by Lightrock. The company has said that it would increase its employee count to 300 in next two years post this round of fund-raising.
Another AI startup, Sarvam AI raised $41 million in a Series A funding round led by Lightspeed in which Peak XV Partners and Khosla Ventures participated.
Post these huge funding rounds, most of these companies are increasing their employee count. Apart from AI startups, others which are able to raise money from investors are also adding employee count for business growth.
Meanwhile, sources in the know said that senior management level employees and mid-level staffers are asking more questions before joining any startup.
“Given the mass layoffs and trouble in many marquee unicorns in recent time, senior level employees are reluctant to join startups. Executive search is getting difficult for startup ecosystem in this respect. Even, mid-level employees, especially working in technology industry are not very keen to join startups due to hire and fire policy. Clearly, technology professionals are seeking safety over pay hike at this point of time,” said another senior official of a Bengaluru-headquartered staffing firm.
