Flipkart, IITs stand-off: Alumni offer help with start-up internships

E-commerce major to help students get stipends of Rs 50,000 a month

A fortnight after India's leading e-tailer Flipkart deferred the joining dates of 40-45 students across 10 Indian Institutes of Technology in the company to December, the alumni of IITs as well as Indian Institutes of Management in the company have stepped in to soothe the frayed nerves. They have offered to get these students internships at other start-ups till December. The internships will earn the recruits a monthly compensation of Rs 50,000.

The proposal was shared with All IITs Placement Committee (AIPC) on Friday, where the placement chairpersons of around eight IITs met in Mumbai to deliberate on the fate of students hired by Flipkart as well as the future course for start-ups in IIT placements.
 

JOB PROFILE

• May 16-20: Flipkart sends letters to IIMs, IITs deferring joining dates to December
• May 16-20: IIM-A sends letter to Flipkart seeking explanation over move
• May 23-27: IITs follow suit, seek explanation from Flipkart
• May 23-27: Flipkart maintains its stand on joining date; agrees to send revised letters
• June 03: IITs, IIMs alumni at Flipkart step in, offer help in getting internships till December

"Flipkart has offered assistance in getting internships for a stipend of Rs 50,000 a month for the students till the deferred joining date of December. However, we have asked for written commitment by Tuesday," said K Mohanty, head (AIPC) and placement chairperson at IIT Guwahati. Mohanty, however, denied any decision being taken on start-ups at future placements.

The alumni letter to students, shared by Flipkart, says it is a voluntary initiative by 'Flipsters' - as the employees of the company are called - and would have no bearing on the existing offer from Flipkart. "At the end of the internship, you have an option to join Flipkart in December or continue at the start-up, given there is mutual interest," said the note, which asks the recruits to apply for internships on a form before June 4. On May 20, Flipkart had sent letters to the students who were hired during campus placements that their joining date would be deferred till the firm completes its organisational rejig in December. The e-commerce player had also offered a joining bonus of Rs 1.5 lakh. This sparked outrage among IITs and IIMs, which have pledged to scrutinise companies that attend campus placements.

Flipkart is undergoing an organisational rejig even as it struggles to battle global rivals such as Amazon and Alibaba, which have become aggressive in India. According to IIT sources, the premier technology institutes are set to meet again in August to review their placement process regarding inviting start-ups at their campuses.

"Against the usual time of October, we will meet early in August to decide what measures to incorporate in inviting start-ups for placements.

In the meeting on Friday, not all IITs were present; hence, a decision could not be arrived at," said a placement chair of one of the IITs.