When Startups End Down
Flipkart isn't the only firm to defer joining dates of students they hire. Funding for startups is drying up and investors are becoming more aggressive in their requirements from startups they invest in. Startups are having to defer joining of hires and reduce packages offered.
Times of India reports that after the Indian Institute of Management, Ahmedabad (IIM-A) shot off a letter objecting to Flipkart's move to defer the joining date of its graduates, students from other IIMs said they were similarly affected. And while IIM-A claimed that it expected a conference call with Flipkart to resolve the matter, India's largest e-tailer has denied any such move, adding to the ongoing placement imbroglio.
Flipkart, in its response to IIM-A, said it will not be able to increase the compensation of Rs 1.5 lakh per hire. Sources said some of the students were being given a salary of Rs 15-18 lakh per annum and a compensation of Rs 1.5 lakh was as good as unacceptable. Several of these students did not accept offers by reputed companies such as Amazon and Accenture, among others, to join the country's largest online marketplace.
A student, who was placed in Flipkart with an annual package of Rs 18 lakh, said he is unsure about his future. "I had refused offers from other companies but as the joining date is deferred, I have no option but to wait," he said. Around 15 of IIM-A graduates who were campus-hired by the Bengaluru-based e-tailer have been affected by Flipkart's move. The office of IIM-Ahmedabad's chairperson had written a strongly worded email to the company stating the late intimation has put the students in a fix. It demanded a higher compensation for the students for the delay imposed at the beginning of their careers.