As many as nine companies have been blacklisted from recruiting at Indian Institute of Technology Bombay for one year.
The institute has blacklisted the companies this year, based on four grounds – those who revoked offers and were found to be fake with no proper office address; those that revoked offers; those that delayed the joining date of candidates and companies that came in for placements and hired students for another startup.
The LeGarde Burnett Group has been blacklisted for revoking its offer and was found to be fake with no proper office address. GPSK; Johnson Electric, China; Portea Medical; Cashcare Technologies; and PepperTap have been blacklisted for revoking job offers made to students. The institute blacklisted a company named Mera Hunar as it came in with a different name and hired students for another startup. IndusInsight has been blacklisted for delaying joining dates of candidates.
The past few months have seen several startups delaying job offers made by them during campus placements. Earlier in June this year, the IIT Council had decided to blacklist companies that had deferred placements, revoked offers or reduced salary packages initially offered to students at the campus placements.
However, the Council had not divulged the names of the startups it was planning to blacklist at that point of time.
Startups, at present, account for 20% to 30% of campus recruitments across IITs and IIMs.
While Portea declined to comment, other companies including LeGarde Burnett Group, LexInnova, Mera Hunar and GPSK did not immediately respond to emails. Johnson Electric and Indus Insights could not be reached for comment.
In late May, IIM-Ahmedabad wrote to Flipkart’s management, rebuking the e-commerce marketplace for postponing the hiring of IIT graduates by six months. Since then, IITs have put together a common front against start-ups.
In the past six months, several start-ups came under the spotlight for delaying or revoking jobs offered to engineering and management graduates.
According to data compiled by New Delhi-based research firm Xeler8.com, more than 40% of the start-ups set up in the past two years have already shut shop. Xeler8 took a sample size of 2,281 start-ups that had initiated operations after June 2014 from across the food-tech, e-commerce, health-tech, robotics and drones, augmented and virtual reality, logistics, online recruitment and business intelligence and analytics sectors.
According to an April report by KPMG and CB Insights, venture capital and private equity firms cut investments in Indian start-ups by almost a quarter on a sequential basis in the three months to March. Investors infused some $1.15 billion into Indian start-ups in the first quarter of this year, down as much as 24% from the December quarter.