- Also, women hires in leadership grew to 19% with salaries rising by 12%, reflecting
progress toward equity - With a 27% rise in employees under 30, Gen-Z is driving startups to prioritize purpose,
flexibility, and transparency in shaping the future of work
INDIA, Bengaluru, 28th January 2025: As India’s startup ecosystem adapts to changing
economic conditions – agility, innovation, and sustainable growth have become cornerstones of growth. RazorpayX, the business banking platform of Razorpay, launches the 2025 edition of the RazorpayX Payroll Report, ‘Show Me The Money’, observing payroll trends in the startup industry and their evolving workforce strategies over the last 12 months of 2024. The platform analyzed payroll data of over 4 lakh employees, across 60,000+ companies currently using RazorpayX Payroll.
The report highlights pivotal trends including harnessing AI capabilities, boosting gender
diversity, the rising influence of Gen-Z, and a stronger focus on governance and compliance, among others. RazorpayX believes these trends are shaping the future of work and driving growth and innovation in the startup ecosystem.
Key Insights from the Report:
★ AI Reshapes the Workforce as Startups Invest in Future-Ready Talent In 2024,
Artificial Intelligence (AI) driven roles, such as Machine Learning Engineers and Data
Scientists, saw a 17% growth in technology teams of Startups. Beyond tech, AI
adoption transformed functions like Marketing (AI-driven customer segmentation) and
Operations (AI-based demand forecasting). Over 30% of startups invested in learning
and development initiatives to reskill employees, optimising recruitment, and
personalising employee growth for an AI-driven future.
★ Women in Leadership Grew to 19%, With Salaries Rising by 12%, Signaling
Incremental Progress in Diversity: Women employees saw higher salary increments
during promotions (12% vs. 9% for men), signaling efforts by Startups to address
disparities and reward performance equitably. Finance Teams led in narrowing pay
gaps, with women earning 85% of their male counterparts’ salaries, while HR maintained
balanced representation.
★ Gen-Z is Reshaping Workplace Culture and Expectations: With a 27% increase in
employees under 30 in 2024, startups are adapting to align with this generation’s
priorities – purpose, flexibility, and transparency. Gen-Z is rewriting workplace rules, compelling companies to evolve their engagement strategies. Startups are responding
by offering on-demand pay, personalized benefits, inclusive & purpose-driven cultures,
and upskilling initiatives. For startups, it’s no longer just about offering competitive
salaries but creating workplaces that reflect the values of a generation shaping the
future.
★ Startups Prioritise Governance, Finance Roles Grew by 26%: Startups are increasingly
focusing on governance, compliance, and cost efficiency, leading to a 26% growth in
finance roles. Specialized positions like Compliance Officers and Treasury Managers
have become vital amid regulatory challenges.
★ Marginal Uptick in Leadership Hiring as Startups Prioritize Internal Promotions and
Strategic Expertise: Leadership hiring grew cautiously in 2024, with CXO roles
increasing by 6.96% as startups balanced essential hires with cost discipline. Director
and President-level roles rose by 8.47%, reflecting a preference for experienced leaders to
drive strategic goals. This marks a shift from 2023’s 25% decline in CXO hiring,
highlighting a calculated approach that emphasizes internal promotions and institutional
knowledge to navigate economic challenges.
★ Outsourcing Demand Grew by 26.77%, Startups Shifted From Contractors to
Managed Service Providers: In a marked departure from last year’s preference for
individual contractors, startups are now prioritizing Managed Service Providers (MSPs)
to enhance scalability and reduce fixed costs. This strategic shift reflects the value
MSPs bring through comprehensive, end-to-end solutions that address operational
complexity. Technology (+14.14%), sales (+10.74%), and logistics (+6.71%) led the
demand for outsourced services, signaling startups’ reliance on specialized expertise to
drive efficiency and growth.
Commenting on the trends observed, Ayush Bansal, VP & General Manager, RazorpayX said, “As we reflect on 2024, it’s clear that India’s startup ecosystem has undergone a major
transformation, embracing agility, innovation, and sustainability. On one hand, AI-driven roles grew by 17%, while on the other, startups are increasingly focusing on governance and compliance, leading to a 26% growth in finance roles. At the same time, we’re also seeing a rise in women in leadership roles, with significant salary increases, highlighting a stronger commitment to diversity, equity, and inclusion. Together, these changes signal that startups are not just focused on growth—they’re recalibrating their strategies to build more resilient, future-ready organizations.”
Looking ahead to 2025, AI will remain at the heart of innovation, with teams combining human expertise and technology to create impactful solutions. To succeed, startups must drive growth with purpose – harnessing technology to scale while putting people first. Emphasizing flexible work models, pay equity, and inclusive cultures will be key to retaining top talent in a competitive market,” Bansal added.
RazorpayX continues to be at the forefront of this transformation, empowering over 60,000
businesses with cutting-edge payroll and compliance solutions and processing over half a
billion payout transactions annually. Strengthening its commitment to innovation, RazorpayX has recently expanded its payroll and compliance offerings to cater to enterprises, extending its expertise beyond startups to support larger organizations in addressing workforce challenges with precision and efficiency.
