Start-ups renege on offers: MICA chief Madhukar Kamath

MICA new president Madhukar Kamath Saturday sounded out an alarm with respect to start-ups offering attractive jobs with high pay to students and revoking the offers later, citing lack of funding.

By: Express News Service | Ahmedabad | Updated: April 3, 2016 12:47:23 pm
MICA, MICA president Madhukar Kamath, start up, gujarat start up, MICA convocation, gujarat news At the 21st convocation ceremony of MICA in Ahmedabad on Saturday. Express

MICA’s new president Madhukar Kamath on Saturday warned students about start-ups offering attractive jobs with high pay to students but later revoking the offers, citing lack of funding.

Speaking at a press conference ahead of the institute’s 21st convocation on Saturday, Kamath said, “We had an unusual situation recently when seven offers made in the first week of placements were revoked by start-ups who had hired some of our best students. Among the students whose offers were revoked, around five got placed only yesterday and one student who is a topper also landed close to five job offers yesterday and is deciding on one.”

“The start-ups backed off from the job offers made early in October citing that the funding they were expecting would be made to their firm, did not come through. It was a tough situation for our students as it was closer to convocation and good students were without jobs. Around 15  per cent of the job offers were from start-ups. In the first week around 90 offers were made with many companies, including a few start-ups. The highest salary this year was Rs 25 lakh and the average pay package was Rs 11.5 lakh, while last year the highest pay package was Rs 23 lakh.”

The chief guest Bhaskar Bhat, MD of Titan Company Ltd, said, “The essence of this problem is that increasingly there is a difference between value-creators versus valuation start-ups which have created a fundamental difference in attitude. When there is value creation for all stakeholders involved, including consumers, employers and employees, then there is a business plan that is sustainable. However, valuation is short-term and everyone tends to see through that.”

In his convocation address, Bhat asked students to “remain curious”. Close to 158 students from PGDM-C and 23 students PGCP-CCC programs graduated at the ceremony.

The annual “PAT Memorial Outstanding Alumnus Award” was given to Founder of YourStory Media Pvt. Ltd..- Shraddha Sharma, who is a 2004 alumnus of MICA.

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