Some Startups Spent ₹6,000 crore on Their Employees Last Year

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Some Startups Spent ₹6,000 crore on Their Employees Last Year
02 Jun 2022
6 min read

News Synopsis

Not all startups are detrimental to employees. Indeed, the top five publicly traded startups were highly generous to their employees in the previous fiscal year.

In FY22, Zomato, Paytm, Nykaa, Delhivery, and PolicyBazaar spent almost 6,000 crore on employee benefits and related expenses. According to data compiled by Business Insider, Paytm spent the most on employee benefits – around 1,622 crore. Zomato was the next to spend $1,479 crore.

Though PolicyBazaar's expenditure appears to be lower in comparison to its counterparts, this is not the case. According to Business Insider's calculations, the fintech startup spent 80 percent of its sales on staff benefits. Zomato came in second with 36%, Paytm came in third with 30%, Delhivery came in 4th with 19%, and Nykaa came in eighth with 8%. Salary, gratuity, insurance contribution, and other expenses are included in employee benefits spending.

Except for Falguni Nayar's Nykaa, no other tech company made a profit in the previous fiscal year. In fact, since the company's first public offering last year, all of its losses have increased rather than decreased. In the same time period, Nykaa's profits fell by 20 crores.

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