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Layoffs in industry, but crowd of startups hiring at B-schools growing

Startups such as Oyo, Ola, Quikr, Zomato and Paytm may be going through a spate of layoffs, but about half a dozen leading B-schools reported a spurt in hiring by ecommerce companies and startups during their recently concluded final placements.

The Indian Institute of Management (IIM), Kozhikode; Management Development Institute (MDI), Gurgaon and Bharatiya Vidya Bhavan’s SPJIMR said the sector recorded the biggest on-year jump in the number of offers during final placements for the Class of 2020.

Several ecommerce companies and startups have indeed decreased hiring this year, and some have even skipped placements.

But that slide has been more than made up for by the large number of startups that have begun hiring on campuses this season, as well as by companies that have increased hiring numbers, placement officials said.

At IIM-Kozhikode, 8.2% of participating students received offers from startups and ecommerce companies, compared to 3% last year. At MDI, ecommerce offers jumped 141% on-year and at SPJIMR, ecommerce absorbed 22.2% of the batch, against last year’s 16.3%.

“The increase can be attributed to the rise in the number of startups participating in placement process,” said Prakrati Gupta, recruitment coordinator at IIM-Lucknow.

Recruitment in certain roles
At IIM-Lucknow, 17.5% of the 2020 batch got offers from ecommerce companies and startups, up from 15% last year.

At Faculty of Management Studies (FMS), Delhi, 16% students got offers from startups this year against 14% in 2019. “The number of startups is increasing at a very healthy rate and this has led to more companies willing to hire managers from top B-schools,” said a placement coordinator at FMS.

“Companies still hire from tier-1 colleges to fulfil their requirements, even with lower numbers.”

The Ahmedabad, Bangalore and Calcutta IIMs are yet to complete final placements.

While the likes of Paytm, Oyo and Lenskart skipped the process this year, Amazon, Udaan, Go-MMT, Grofers, Cloudtail and Swiggy were among those who made offers to students, said Abbasali Gabula, associate director, external relations, SPJIMR.

Amazon, Flipkart, Myntra, Udaan, Blackbuck, Byju’s, Browserstack, Bounce, Gramener, Ninjacart, Rebel Foods, Swiggy, Go-MMT, EcomExpress and Freshworks are among the companies hiring, according to placement cells across campuses.

Even Ola and Oyo, which have been laying off employees, hired at certain B-schools. The former hired at IIM-Lucknow and SPJIMR, while the latter was the largest ecommerce recruiter at MDI-Gurgaon.

Recruitment is taking place for roles in product management, category management, as well as in business development and operations.

MDI’s placements chairperson Kanwal Kapil said offers from ecommerce companies had made up for the dip in banking, financial services and insurance (BFSI) numbers at the institute.

Source: ET