The Indian Institutes of Technology (IITs) plan to ask Indian startups to disclose their sources of funding and balance-sheet details ahead of campus recruitment. The announcement comes after Flipkart’s decision to defer by six months the joining date of some IIM graduates to whom it had made job offers. reported Mint.
The All IITs Placement Committee plans to meet next week to come up with a detailed plan that could put “onerous” conditions on start-ups looking to hire students from the IITs, according to the report by Arundathi Ramanathan. Other startups are also planning to delay the joining dates of their campus hires, which could end up having an impact on over 150 students at the IITs.
Flipkart has attributed the delay to the company’s current corporate restructuring that involves consolidation of business units along with launching new business units. In a lengthy blog post addressing the delay, Flipkart said it will launch an improved campus program in December, and promised to pay an additional joining bonus of ₹1.5 lakh to all campus recruits.
"Future engagement of Flipkart with B-school campuses is bound to get affected as a relationship based on mistrust and lack of transparency can never be mutually beneficial," read a recent e-mail sent by IIM-Ahmedabad to Flipkart co-founder Binny Bansal and human resources head Nitin Sethi, according to media reports. "Rude shocks due to unilateral decision making does little to help strengthen relationships with the campus."
The IITs also plan to educate students on the “risk of joining startups” and encourage hiring by companies at the end of the financial year, by when they have a better idea of their financial health.
The funding spree that Indian startups saw in 2015 has slowed down in recent months, with many venture capital and private equity investors tightening their belts. According to data by CB Insights and KPMG’s Venture Pulse 2015 report, deals slipped by four percent while funding fell by 24 percent as VC-backed startups raised US$1.2 billion on 116 deals.
We say, startup life was never an easy road.
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