Indian Startup Founders’ Salaries Drop 25.4% to ₹5.44 cr in FY24
In a stark reflection of the struggles faced by India’s startup ecosystem, the median salary of startup founders has taken a significant hit in the financial year 2024 (FY24). According to a recent report, the median salary of 54 founders from 30 tech startups in India has dropped by a whopping 25.4%, from ₹7.3 crore in FY23 to ₹5.44 crore in FY24.
This decline in salaries is a clear indication of the broader challenges facing the startup ecosystem, which has been grappling with a prolonged funding winter. The current downturn in investments has led to a ripple effect, impacting the compensation packages of startup founders.
The report, which was compiled by Ascendants Group, a leading financial advisory firm, highlights the significant impact of this funding winter on the salaries of startup founders. The median salary of ₹5.44 crore in FY24 is a far cry from the ₹7.3 crore recorded in FY23. This represents a decline of approximately ₹1.86 crore, or 25.4%, year-on-year.
It is worth noting that the median salary of startup founders is not the only metric that has been affected by the funding winter. The report also highlights that the operating income of the 30 tech startups in question has collectively posted a significant decline, from ₹81,515 crore in FY23 to ₹73,715 crore in FY24. This represents a decline of approximately ₹7,800 crore, or 9.6%, year-on-year.
The funding winter has been a pressing concern for the startup ecosystem, with many startups struggling to raise capital to fund their growth plans. The decline in investments has led to a liquidity crunch, making it challenging for startups to sustain their operations. This, in turn, has resulted in a reduction in salaries and other benefits for startup founders.
Despite the challenges faced by the startup ecosystem, the report highlights that many startups are still able to post significant operating income. The collective operating income of the 30 tech startups in the report stands at ₹73,715 crore, with several startups posting impressive numbers.
The report also highlights that the decline in salaries is not limited to startup founders alone. The funding winter has also impacted the salaries of other employees in the startup ecosystem, with many facing significant reductions in their compensation packages.
The report cautions that the current funding winter is unlikely to end soon, with many investors remaining cautious about investing in startups. This could lead to further declines in salaries and other benefits for startup founders and employees.
In conclusion, the report highlights the significant impact of the funding winter on the salaries of startup founders in India. The median salary of ₹5.44 crore in FY24 represents a decline of 25.4% year-on-year, reflecting the broader challenges faced by the startup ecosystem. Despite the challenges, many startups continue to post significant operating income, and the report highlights the need for startups to adapt to the current market conditions and focus on sustainability.
