Source | NEWS18
Flipkart’s decision to delay joining of IIM and IIT graduates has sent shock waves across the e-commerce sector and raised questions on whether India’s start-up dream is sinking.
Experts, however, have allayed such fears saying what is happening is just a cyclical change but also warned that these companies would need to solve structural issues to reach profitability soon.
Appearing on the News360 shown on CNN-News18, Manish Maheshwari, CEO, Network18 Digital, said, “With the global investment climate tightening, the kind of runway these companies were hoping to have is not available at the moment.”
Despite reports of over 3,000 job cuts in the sector over the past six months, Maheshwari said he is very optimistic about India’s start-up initiative and that a great set of youngsters were coming into the business.
Maheshwari said the easy money climate that was existing a year ago was getting tightened.
“The right set of players will survive. The ones who are not so thoughtful will have to make way for the ones who are more thoughtful,” he said.