Indian VC firms back in hiring mode as deal activity rebounds

Indian VC firms back in hiring mode as deal activity rebounds

After two years of cautious belt-tightening, India’s venture capital (VC) firms are dusting off their hiring playbooks.

With hiring intent up by 15-30 percent, deal flow on the upswing, and fresh capital back in circulation, recruiters say VCs are now actively expanding their teams – and it’s not just entry-level analysts they’re after.

“There is optimism around hiring among India-focused VC firms,” said Karthikeyan Kesavan, Director of Permanent Recruitment at Adecco India. “We’re seeing a 15 percent year-on-year (YoY) increase in hiring intent among these firms, and close to a 30 percent YoY increase in hiring across their portfolio companies.”

This shift in sentiment follows a resurgence in VC fundraising activity after a lull in 2024. As Moneycontrol reported earlier, firms such as Accel, Bessemer, Cornerstone VC and Prime Venture Partners, among several others, have launched new funds, and $100 million-plus deals are back on the table – especially for IPO-ready startups.

With investment activity picking up, demand for talent is rising fast.

“There’s been a significant uptick in hiring because of the increased deal activity compared to the first half of last year,” said Tushar Khandelwal, founder and CEO of Basil, a VC-focused recruitment firm. “VCs need more people to evaluate deals, and so they’re expanding their teams.”

Hiring at venture capital firms is the strongest at analyst and associate levels, where teams rely on fresh talent for market research and due diligence.

The hiring wave isn’t limited to the bottom rungs alone. “People who didn’t make Partner are now moving out. VPs are moving out. So, replacement hiring is happening,” Khandelwal said. “The bulk of hiring is still at the entry level, but senior hiring has also picked up over the last year.”

AI Roles in the Spotlight

It is not just generalists that firms are after, the hottest picks in town are the AI specialists.

“Pretty much every VC firm is now looking to hire an AI expert. The top-tier firms were ahead of the curve, they identified individuals with software-as-a-service (SaaS) backgrounds starting as early as 2022-23. But now there is a higher focus on (bringing in) artificial intelligence and machine learning (AI/ML) experts,” Khandelwal said.

This aligns with the increasing focus on emerging technologies across VC portfolios, with firms actively looking to invest in AI startups and identify high-potential AI opportunities.

According to Kesavan, strategic roles in AI, data engineering, and healthcare are in particularly high demand. “Firms are also on the lookout for consultants who bring deep sectoral expertise,” he added.

The knock-on effect is visible in portfolio companies too. “Collectively, VC firms are looking to hire thousands of new employees to support their expanding portfolios,” said Kesavan, pointing to the nearly 30 percent rise in hiring activity within VC-backed startups.

Cautious Rebound in Hiring

Naveen Tiwari, co-founder of recruitment firm Scrabble, describes the current sentiment as “cautiously optimistic.” He estimates hiring intent has risen 20–30 percent in 2025 compared to last year.

“Previously, hiring faced the brunt of the funding winter and the subdued growth cycle. But now, with renewed deal activity and a more favourable investment climate, firms are back to scouting talent – albeit carefully,” he said.

The focus is largely on junior to mid-tier roles, especially those with two to five years of experience and skills in AI, data science, or cybersecurity. Senior hiring, as per Tiwari, is reserved for highly specialised roles with leadership expectations, which is a far cry from the freewheeling expansions of the pre-2023 era.

While hiring may not have returned to pandemic-era highs just yet, all signs point to sustained momentum through 2025. Several Indian VC firms have recently raised fresh funds, and with more startups preparing for public listings, the sector’s hiring engine is just getting warmed up.

“Hiring will remain strong as long as deal flow continues. The industry is dynamic again – and that dynamism needs people,” Kesavan concluded.