Mumbai: Weeks after the top-level rejig at Flipkart, its head of commerce and advertising business…
NEW DELHI(PTI):Darling of jobseekers till recently, the start-up space may lose some sheen in the job market as management and tech graduates might prefer joining ‘safer companies’ after the Flipkart fiasco, say experts.
The e-commerce major has deferred the joining dates for campus hires from IIM Ahmedabad and IITs, citing restructuring of its businesses, for which it has got a lot of flak from the colleges as well as the industry.
Reports suggest Flipkart is not the only company from e-commerce and related sectors to have deferred the joining dates for their campus hires and there are many others, including InMobi, CarDekho and Hopscotch who have done the same.
According to industry and HR experts, it might also bring a lot of pressure on reputation, success and unpredictability of the educational institutions concerned as it disturbs their placement track record.
“Start-ups would definitely lose sheen because of this fiasco,” staffing services firm TeamLease Services assistant vice-president Sudeep Sen said.
The job seekers might begin thinking that it is good to earn a little less and join an established organisation, rather than a start-up, he added.
The start-ups are, however, confident of passing through this turbulent phase and get back their attractiveness.
“Of course, it will have some adverse impact on start-up attractiveness. However, each industry goes through it — a period of euphoria followed by calmness and then stability sets in. The start-ups will become attractive again once they become more stable,” e-commerce firm Zopper CEO and co-founder Neeraj Jain said.
Flipkart has also seen mark-downs in the value of its shares by a number of investors like Fidelity Investments and T Rowe Price and Morgan Stanley.
The overall early-stage private equity investments have also seen a sharp decline in the first four months of this year.