A bunch of startups buck trend to offer double-digit hikes

Staff at startups such as upGrad, Revfin and Hero Vired will likely get double-digit pay increases this year, executives at several of these firms told ET, signalling their ability to negotiate a protracted funding winter that has caused both jobs and wages to shrink in an industry typically undergirded by external financing.

CashKaro, Clevertap, Physics Wallah, CLXNS Technologies and DaveAI are also among those offering their staff satisfactory pay increases that are sometimes even better than those given last year.

“Increments will range from 10% to as high as over 100% depending on the team, revenue contribution and future potential,” said Swati Bhargava, co-founder of CashKaro.


From record funding rounds that lasted until early 2022, startups are now facing a financing crunch after the US Federal Reserve raised benchmark rates at the fastest pace in more than four decades to restrain inflation.

Still, some firms are going a step ahead and even raising pay upward of 20%. Another trend is the shortening of appraisal cycles - from annual to half-yearly or even quarterly/monthly in some cases.

“We will continue with the annual appraisal cycle for increments and final annual rating perspective,” said Monika Saxena, chief strategy officer at Revfin, an EV finance company. “However, in addition to the existing mid-year performance assessment, we are initiating monthly assessments for a few roles.”

This year, Physics Wallah has given an average increment of 12-15%, said its HR head Satish Khengre.

Hero Vired has a bi-annual appraisal process in place and the company gives high performers disproportionate hikes.

“We believe our hikes are the best in the industry - they are usually between 8 and 12%. The last hike given was just 6 months ago, which again was in the range of 6-8%,” said its head of people and culture, Samra Rahman.

Liquidity Effect

Experts said higher increments are usually associated with firms that lately raised funding.

"We are typically seeing higher-than-average increments being rolled out by startups that have raised funds in the last couple of months,” said Anandorup Ghose, Partner, Deloitte India. “We are seeing many companies giving pay rises only at the junior levels and not for the middle and senior levels, and that too in the range of 5-6%. For those giving higher increments, it is as much about rewarding performance as they are about retaining talent - because that is essential for the business to survive."

UpGrad is giving an average increment of 9.6%.

“The increment given to high performers was also higher than last few years and a good set was also promoted, thus continuing with the growth trend at One upGrad,” said Saurabh Deep Singla, CHRO, upGrad.

Starting this year, CLXNS Technologies, a digital-first debt resolution company, is rewarding exceptional performers with international trip tickets as an incentive.

“We believe this (tickets for international destinations) will motivate and inspire our employees to strive for even greater success,” said its MD and CEO, Manavjeet Singh.

CLXNS Technologies also plans to shorten the annual appraisal cycle to a six-monthly exercise.

The expected hike rate for this year is in the range of 15-30%, which is better than last year, said Singh.

AI-powered virtual avatar platform DaveAI is introducing group appraisal this year, where appraisals will also include team performance and not just individual performance.

“Appraisals are better for FY 2023 - about 15-30% - driven by a bullish market,” said Sriram PH, CEO & co-founder, DaveAI.