IITians opt for cash rich start-ups in placements

Believe working in start-ups will help them float their venture in the future

With investments flowing into the Indian startups and e-commerce companies, IITians are taking up more offers from the start-up stable this year.

The Indian Institutes of Technology (IITs) say increasing investments in start-ups has seen more recruits opting for these companies. 
 

"Students know what is happening in the market. Most of the start-ups and e-commerce companies are technology driven. So the funds that they have raised would be spent on manpower. Besides, students with dreams of floating their own startups want to learn the ropes by working with these companies," said Mohak Mehta, placement coordinator at IIT Bombay.

Over the past 11 months, Indian e-commerce companies have secured over $3.9 billion investment from investors including venture capitalists, private equity funds and banks.

Flipkart, raised $1 billion from Tiger Global Management and Naspers along with Singapore’s sovereign wealth fund, GIC, besides existing investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina.

Kunal Bahl-led Snapdeal raised about $1 billion in total this year, with the financial services arm of Japanese telecommunication and internet corporation, SoftBank Internet and Media, joining the company as a long term investor.

Mukesh Bansal-led Myntra secured $50 million investment led by Premji Invest along with existing investors Accel Partners and Tiger Global.

Grocery and veggie etailer Bigbasket snapped up $33 million from Helion Ventures, Ascent Capital, Zodius Capital and Lionrock Capital in September this year and Fashion e-commerce major Jabong amassed $27.5 million from British development finance institution CDC in a deal in February 2014.

Furniture etailer Urbanladder closed $21 million Series B funding from Steadview Capital along with the existing investors, SAIF Partners and Kalaari Capital, in January this year, among others.

"Most of the start-ups are led by IITians and are doing well. This has made us confident of joining and working with our seniors," said an IIT Kanpur student.

Many of the start-ups like-- Flipkart, Olacabs, Commonfloor.com, Housing.com-- have been started by ex-IITians.

So far, at IIT Roorkee, the total number of offers by startups is 78 in just eight days compared to 83 last session. 

"As the end of this placement session is very far, the list of startups and consequently, the number of offers made by them would increase to even more impressive levels," said NP Padhy, Professor-in-Charge, Training and Placement at IIT Roorkee.

Students say with an eye on future, they are ready to let go of the big pay packages. "Learing the ropes and floating our own ventures in future is the key now. If our ventures are successful, valuations will follow," added the IIT Kanpur student.

IITs have seen a surge in the number of students joining startups or deciding to opt out of placement process to float their own ventures. 

"With the economy turning around, the students are more confindent of their business ideas. We are encouraging them by providing them with the option of deferred placements," said the placement chairperson from an IIT.

While IIT Bombay saw around 10-12 students opting for deferred placements, IIT Roorkee saw none. The placement season will go on till May/June, 2015.