NEW DELHI: India’s largest e-tailer Flipkart has pushed back the joining dates of new recruits from several top B-schools by six months, triggering speculation that a funds crunch and falling valuation are troubling the start-up.
A week after the firm deferred the joining dates of fresh hires from IIM-Ahmedabad and Bangalore, students at XLRI in Jamshedpur, ISB in Hyderabad and FMS in Delhi have had similar experiences.
“Flipkart has not made direct contact with the institute, instead they have informed the students about a six-month delay in the joining date” said Rajiv Mishra, chairman of the XLRI placement cell.
FMS said the institute is exploring placement options with other online majors such as Shopclues, Paytm and Amazon.
Eight students from XLRI ( Xavier Labour Relations Institute) and one from FMS (Faculty of Management Studies) have been asked to wait by Flipkart, in addition to 18 from IIM-Ahmedabad and 11 from IIM-Bangalore.
ISB (Indian School of Business) refused to release hiring figures.
The unusual postponements — the company has cited organisational restructuring as the reason — sparked rumours that the face of India’s start-up culture is in trouble.
Set up in 2007, Flipkart grew on the back of heavy discounts that led to losses of over $40 million a month, experts say.