Start-ups had, over the past few years become the toast of the season at placements, coming up with offers of salary raise up to 120% claiming one in nine students from the 2013-15 batch in top Indian B-schools. However, of late, the sheen seems to have worn off as at several IIMs, these firms had deferred placements this time citing one reason or the other.
With several of the start-ups that were flush with investor funds and on a high growth path, expanding their operations in e-commerce and other sunrise sectors, forced to cut back operations due to various factors like funding problems and increasing competition affecting margins, the outlook is not that rosy any more.
Thus, fresh recruits, numbering about 250, selected by several start-up firms during final placements at IIM Lucknow, IIM Kozhikode, IIM Shillong, Jamnalal Bajaj Institute of Management and Studies, and others are yet to get their joining orders.
Similar was the situation in the IITs, the favourite hunting grounds of the start-ups in the initial days when they needed technically qualified personnel to set up the systems. Then, as operations expanded at phenomenal rates, fresh managerial talent became much sought after from the IIMs.
However, the summer internships have not been affected by the churning among the start-ups.
Most of the start-ups are unwilling to comment on the situation except Girnarsoft, the parent company of CarDekho.com. It pleaded lack of space that could be rectified only when its new campus comes up in three to four months.
Amit Jain, chief executive officer and co-founder, Girnarsoft, said around 30 to 40 recruites may face delay in joining. At present, CarDekho has 3000 employees leading to a space crunch.
However, most of the start-ups have not provided any explanation for the delay. According to placement coordinators at IIMs, the usual joining dates in May-June have been extended to September-October.
While the IIMs have little communication from the start-ups on reasons for delay, information received through students and other sources point to lack of funds or cutting down operations.
The IIMs, on their part, are trying to work out a solution with the start-ups as the situation has become worrisome for the fresh graduates.
Among the start-ups that have closed down or restricted their operations to certain cities leading to withdrawal of offers at IITs include Zimply Home Shopping and PepperTap.
The withdrawal of offers has led to a situation where the Institutes are allowing the students to sit for placements again and quite a few of the students approaching recruitment agencies.
