Cash strapped-startups are withdrawing jobs offers, leaving students in a lurch

IIT students are high and dry over placement issues as many startups have withdrawn their job offers owing to shortage of funds.

Startups had gone on a hiring spree and became the most-sought after choice for students. But, they are either delaying or taking back offers from students of IITs in Delhi, Mumbai, Roorkee and Guwahati.

Many of the startups that offered jobs have either shut down or trimmed their operations.

The uncertainty over date of joining is looming large over students.

“At IIT Delhi, two startups withdrew job offers after they closed down, while another two made offers but could not keep the commitments. This is not a good sign. This leads to a lot of uncertainty,” Anishya Madan, industrial liaison officer, training and placement at the institute, told ET.

"While one startup withdrew offers given to six students, a few others are saying they will come up with later joining dates as some businesses they had hired for are not doing well," Ayush Lakhotia, placement coordinator at IIT Bombay, told ET.

Meanwhile, the hiring percentage also went down as startups are under pressure to make profits now.

"In January, Zimply Home Shopping said they are ceasing operations in certain cities and cost-cutting. They had taken five students from IIT Guwahati but withdrew all five offers," Harish Bohara, student coordinator of placements at IIT Guwahati, told ET.

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