Indian Unicorn Founders' Salaries Soar in 2022-23, With Media and Entertainment Leading the Pack

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Indian Unicorn Founders' Salaries Soar in 2022-23, With Media and Entertainment Leading the Pack

Team Finance Saathi

27/May/2024

Key Points:

Median salary for Indian unicorn founders rose to US$ 1,79,662 (Rs. 1.5 crore) in FY 2022-23.
Media and entertainment sector founders earned the highest median salary at US$ 4,19,211 (Rs. 3.5 crore).
Pune had the highest regional founder salaries, significantly influenced by FirstCry CEO Supam Maheshwari.

In the financial year 2022-23, a comprehensive study by PrivateCircle Research revealed significant trends in the salaries of founders of Indian unicorn companies. Unicorns, companies valued at over US$ 1 billion, have seen their founders' compensation packages rise notably, with a median salary of US$ 1,79,662 (Rs. 1.5 crore). This study focused on 114 such companies, scrutinizing the top seven sectors with the highest unicorn concentrations.

Gender Pay Disparities:

One of the standout findings of the study is the gender pay gap among founders. Female founders had a median salary of US$ 1,19,774 (Rs. 1 crore), while their male counterparts earned significantly more, with a median salary of US$ 2,15,594 (Rs. 1.8 crore). This disparity highlights ongoing gender inequality in the compensation of startup founders, despite the growing number of women leading successful ventures.

Sector-Specific Insights:

The media and entertainment sector emerged as the leader in founder compensation, with a median salary of US$ 4,19,211 (Rs. 3.5 crore). This sector's high median salary reflects the lucrative nature and high revenue potential of media and entertainment ventures in India.

Following this sector, the logistics and edtech sectors also reported high median salaries for founders. Logistics sector founders had a median salary of US$ 2,27,572 (Rs. 1.9 crore), while edtech founders earned US$ 1,91,639 (Rs. 1.6 crore). These figures underscore the importance and profitability of these sectors, which have seen significant growth, especially in the wake of the COVID-19 pandemic.

Average Salary Variations:

The study also noted considerable variations in average founder salaries across sectors, with the logistics sector leading with an average salary of US$ 1.49 million (Rs. 12.4 crore). This figure is likely skewed by a few high earners, indicating the presence of outliers who command exceptionally high salaries compared to their peers.

Regional Salary Differences:

Regionally, Pune stood out with the highest average and median founder salaries. Founders based in Pune earned an average salary of US$ 2.40 million (Rs. 20 crore), with a median salary of US$ 4,43,166 (Rs. 3.7 crore). This exceptional average is largely due to the remuneration of Supam Maheshwari, CEO of FirstCry, whose total salary in FY23 was an astonishing US$ 23.95 million (Rs. 200.7 crore).

Implications and Future Trends:

These findings have significant implications for the startup ecosystem in India. The rising salaries reflect the growing success and maturity of Indian unicorns, which are increasingly attracting substantial investments and generating significant revenues. However, the gender pay gap indicates a need for more equitable compensation practices within the startup community.

Moreover, the high salaries in specific sectors such as media and entertainment, logistics, and edtech suggest these areas are particularly lucrative and may continue to attract entrepreneurial talent and investment.

The regional salary differences highlight Pune as a burgeoning hub for high-value startups, potentially influencing more founders and investors to consider the city as a viable base for operations.

Overall, the study by PrivateCircle Research provides a detailed overview of the compensation trends among Indian unicorn founders, offering valuable insights for aspiring entrepreneurs, investors, and policymakers aiming to foster a more equitable and thriving startup ecosystem.

As India's startup landscape continues to evolve, monitoring these salary trends will be crucial in understanding the economic health and attractiveness of the sector. This data can guide future decisions in entrepreneurship, investment, and policy formulation, ensuring sustained growth and innovation in the Indian startup ecosystem.

Also Read : Record Wheat and Rice Procurement Secures India’s Food Grain Stock for 2024

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Indian Unicorn Founders' Salaries Soar in 2022-23, With Media and Entertainment Leading the Pack

Key Points:

Gender Pay Disparities:

Sector-Specific Insights:

Average Salary Variations:

Regional Salary Differences:

Implications and Future Trends:

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