Job offers

Startups withdraw or postpone job offers made on campuses

The hiring party is over. As the funding environment becomes challenging, start-ups such as Vedantu, upGrad and Curefit have withdrawn or postponed on-campus recruiting offers.

Most college placement drives wrapped up between October and February, when investor sentiment toward start-ups was still at an all-time high. But with funding momentum slowing due to the market downturn, recruitment offers for sales, marketing and technology roles have been heavily impacted, according to an industry source who works closely with business establishments. ‘education.

“There are several instances where we are seeing placement offers being withdrawn or postponed. Over the past couple of years, tech companies have raised huge amounts of capital and grown exponentially. In cases where a company could make do with a 50-member sales team, it hired 200 people. Now with the market downturn, start-ups are failing to deliver on their promises of hiring huge teams,” the source said. Activity area.

Several graduates from leading institutions, such as Indian Institute of Technology, Kanpur and Delhi Technological University, have posted posts on social media that health and fitness unicorn Curefit has postponed the six-month on-campus placement offers (new joining date is January 2023).

These students were offered software development engineer positions at Curefit in July 2021. As they had already been placed, they were not allowed to have any further placement interviews and have no further offers. According to one such social media post, Curefit notified students of the delayed registration date about a week ago.

“Due to severe effects on all businesses including healthcare, campus recruitment across India has been postponed for six months with no promise of FTE conversions in the near future,” the notification reads. sent to students.

Vedantu and upGrad did not respond to questions, and Curefit declined to comment.

According to the source cited above, this trend of withdrawing or delaying campus placement offers is seen across all industries, including information technology, traditional IT companies, health technology, and logistics. . Over the past few months, more than 3,500 employees have been laid off across multiple start-ups, including unicorns such as Vedantu, Unacademy, Cars24, Meesho, and MPL, among others.

The slowdown in funding has hit start-ups at all stages, from growth-stage companies unable to raise new funds to early-stage start-ups that have to settle for valuations and sizes. funds below expectations. According to data shared by Tracxn, in Q2 CY22 YTD (April 1 to May 24), Indian start-ups raised $3.6 billion in venture capital rounds, compared to $9 $.7 billion in Q1 CY22 and $14.2 billion in Q4 CY21.

Published on

May 31, 2022