Why IIM Graduates Are Shifting from Corporate Jobs to Startups?

Over the years, Indian Institute of Management (IIM) graduates have been highly sought after by top corporations for their sharp business acumen, management skills, and leadership potential. However, there’s been a noticeable shift in recent times where more IIM graduates are choosing to leave the comfort of corporate jobs and venture into the startup ecosystem. Below are the ten key reasons driving this trend:

1. Desire for Creative Freedom

Corporate jobs often come with a set of pre-defined roles and responsibilities, limiting the scope for creativity. Startups, on the other hand, offer IIM graduates the freedom to experiment with new ideas, strategies, and business models without being tied to rigid structures.

2. Entrepreneurial Ambitions

Many IIM graduates harbour entrepreneurial dreams. Startups allow them to pursue these ambitions without the constraints of a hierarchical corporate structure. They get to create, innovate, and lead their own businesses, which provides a deep sense of fulfilment.

3. Faster Career Growth

The corporate ladder can be slow and hierarchical, with promotions based on tenure rather than merit. In a startup, talented individuals can rise to leadership positions quickly, allowing IIM graduates to fast-track their career growth.

4. Opportunity to Make an Impact

In large corporations, an individual’s contribution might feel diluted within a vast system. Startups, being smaller and more agile, provide IIM graduates with the chance to make a tangible impact on the business, its products, and its customers.

5. Exposure to Multiple Roles

IIM graduates working in startups are often exposed to multiple facets of the business—from marketing and finance to product development and operations. This dynamic environment allows them to gain diverse experiences that might not be possible in traditional corporate jobs.

6. Equity and Financial Incentives

Startups often offer employees the chance to own equity in the company. While corporate jobs provide stability through salaries, startup equity can offer long-term wealth creation, especially if the startup is successful.

7. Flexible Work Environment

Startups typically have a more relaxed and flexible work culture compared to corporate jobs. Many IIM graduates find the flexibility in work hours, remote work options, and casual work environments appealing, as they align with the modern-day need for work-life balance.

8. Thrill of Building Something New

The challenge and excitement of building something from the ground up are compelling for IIM graduates. Startups allow them to work on innovative solutions and disruptive technologies, providing the thrill of creating something new that can potentially change industries.

9. Learning Opportunities

The startup ecosystem is fast-paced, and individuals need to be quick learners. IIM graduates, who are trained in adapting to new challenges, find startups a fertile ground for continuous learning, as they are often faced with uncharted problems and have to develop solutions on the fly.

10. Changing Perception of Success

Traditionally, success was measured by landing high-paying corporate jobs at multinational companies. However, there has been a cultural shift where success is now associated with innovation, entrepreneurship, and the ability to take risks. Startups are seen as a more rewarding avenue for IIM graduates to pursue their passion and redefine success on their terms.

List of Start-ups by IIM Alumni
 

1- Vipul Parekh (Big Basket) IIM Bangalore

Vipul Parekh is one of the co-founders and the Chief Marketing Officer (CMO) of BigBasket, an online grocery delivery service in India. He has played a significant role in building the company's brand and scaling its operations since its inception. His background in finance and operations, combined with his strategic insights, helped BigBasket expand rapidly and become a leader in the online grocery market in India.

2- Sachin Bansal and Binny Bansal (Flipkart) IIM Ahmedabad

Sachin Bansal served as the CEO and led the company in its early stages, building Flipkart into a massive e-commerce giant. Under his leadership, Flipkart became a leader in the Indian market, rivaling international competitors like Amazon.
Initially, Binny Bansal handled operations and supply chain logistics at Flipkart, ensuring the smooth functioning of its backend systems. He later took over as CEO after Sachin stepped down in 2016. Binny was instrumental in developing the logistics infrastructure and technology backbone that made Flipkart successful.

3- Deepinder Goyal and Pankaj Chaddah (Zomato) IIM Calcutta

As CEO, Deepinder Goyal has been instrumental in transforming Zomato from a restaurant directory service into a full-fledged food-tech company, offering food delivery, restaurant reviews, table reservations, and more. Under his leadership, Zomato has expanded globally and became a leading player in India’s competitive food delivery market.
Pankaj played a key role in Zomato’s early operations, helping scale the platform and expand its services to multiple cities in India and internationally. He focused on the company’s operations, growth strategies, and partnerships.

4- Vijay Shekhar Sharma (Paytm) IIM Lucknow

Vijay Shekhar Sharma is the founder and CEO of Paytm, one of India’s leading digital payments and financial services companies. His journey is one of resilience, innovation, and entrepreneurship, making him one of the most influential figures in India's fintech ecosystem.
Under Vijay's leadership, Paytm has expanded beyond payments into e-commerce (Paytm Mall), banking (Paytm Payments Bank), wealth management (Paytm Money), and even stockbroking and mutual funds.

5- Richa Sharma and Nischal Kandula (CURRYiT) IIM Udaipur

Richa Sharma and Nischal Kandula, alumni of IIM Udaipur, are the co-founders of CURRYiT, a direct-to-consumer (D2C) food startup. CURRYiT specializes in fresh, ready-to-cook curry pastes made using traditional recipes and high-quality ingredients like ghee. The startup aims to make cooking at home easy and hassle-free for busy consumers, particularly in metro cities, by offering products that don’t compromise on quality or flavor.

While corporate jobs provide stability, IIM graduates are increasingly drawn to the dynamism, flexibility, and sense of ownership that startups offer. The startup ecosystem allows them to exercise creativity, take risks, and experience rapid personal and professional growth, making it an attractive alternative to the corporate world.

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Gauri Shankar Bisht

Gauri Shankar Bisht specializes in guiding individuals through career advancement programs, leveraging his extensive technical expertise. He holds both an M.Tech and a B.Tech from Graphic Era Hill University, Bhimtal. With a strong foundation in technology and a passion for professional development, Gauri is dedicated to helping individuals achieve their career goals and stay ahead in the competitive job market.