Start-ups on a quest for MBA stars: Why fresh B-school grads are the hot favourites in India's start-up world

Start-ups thrive on innovation, risk-taking, and collaboration—fundamental qualities cultivated at premier B-schools, say experts. “B-school graduates often come with a fresh and innovative mindset, driven by their recent exposure to the latest business concepts, frameworks, and strategies”, says Naveen Kumar Nerlaje, Head of People Experience at Licious, a unicorn in the fresh meat and seafood space. This entrepreneurial spirit enables them to challenge conventional wisdom and approach problems creatively, offering solutions that can disrupt the status quo.

Sahil Mathur, CHRO at InMobi Group, an Indian multinational tech company, emphasises that B-school hires complement the fast-moving, agile culture of start-ups. “They’re trained to approach problems with a structured mindset, complementing the agility and speed of start-ups,” he says. Mathur adds that their leadership potential and contemporary business knowledge often serve as catalysts for innovation. This combination of skills and mindset is precisely what start-ups need to drive transformative growth and stay competitive in a disruptive market.

While there is no set mandate for start-ups to hire exclusively from the top B-schools, targeting these institutions has become a strategic move for many. Ashish Kumar Singh, CHRO at Meesho, a social e-commerce platform, explains that hiring from top-tier B-schools is central to their recruitment strategy. “We have primarily focussed our hiring efforts on the Top 10 B-schools in the country. We believe that recruiting from these institutions is essential to bringing the best talent on board, helping us advance Meesho’s mission of democratising internet commerce for everyone,” he says.

Start-ups are actively recruiting B-school graduates across a wide range of functions, including analytics, technology, business, finance, product design, and customer experience. Plus, leadership roles are increasingly being filled by B-school alumni.

One of the unique advantages these graduates bring is their expansive professional network. Varun Gupta, Co-founder of consumer electronics brand Boult, underscores how this network has helped his company scale and form key partnerships. “We are a young company and driven by innovation. Their fresh perspectives help us think of solutions that aren’t traditional,” he says.

Similarly, Amit Gupta, Co-founder of electric mobility firm Yulu, says B-school graduates not only possess strategic thinking skills but also demonstrate a strong bias for action and high ownership of their work. “They have usually dealt with diverse business scenarios and worked in fast-evolving environments. They also have the advantage of a good network of alumni, professors, and mentors, who can be beneficial for the business in building partnerships and hiring exceptional talent,” he says.

Striking a Balance

While B-school graduates are highly valued, it is equally important to recognise the role of experienced industry professionals. Rupini Raman, Head of HR at Yulu, stresses the importance of finding a balance between industry professionals and B-school graduates. “Let’s face it. The kind of attrition we see with these MBA grads is way higher because they are younger, there’s a hunger for growth and higher salaries,” she says. While B-school graduates bring fresh ideas and agility, experienced professionals offer a richness of experience that is equally critical to a company’s success.

Raman adds that large organisations, much like start-ups, are also realising the need to adapt to new-age businesses to avoid becoming obsolete. Many companies are looking to invest in innovative business models, and B-school graduates are often at the forefront of evaluating these opportunities, she adds. “If large organisations continue to operate as they have for the last 20-30 years, they risk perishing. B-school grads are bringing in the kind of thinking that organisations need to stay relevant,” she says.

While there may be certain skill gaps between B-school graduates and industry professionals, most CHROs agree that these can be addressed within the start-up ecosystem. Mathur of InMobi says that his company views the gap between academic learning and real-world application as an opportunity, rather than a challenge. “Any gaps in practical experience are quickly addressed through our hands-on approach, where every team member is encouraged to take ownership and learn on the go through real scenarios,” he says.

B-school graduates bring energy, curiosity, and ambition, focussing more on their potential rather than their initial experience. Mathur adds that nurturing talent and encouraging internal growth helps start-ups strike the right balance. Kumar of Licious highlights that internships and live projects are key to forming sustainable partnerships between start-ups and B-school grads.

The ‘C’ Factor

One area where B-school graduates have a distinct advantage is compensation. According to Yulu’s Gupta, graduates from Tier I B-schools start their careers with a significant head start over their counterparts from other institutions. “This is true for any top college hire across industries, not just start-ups,” he says. Industry experts note that MBA graduates with relevant experience often command higher compensation than non-MBAs, because of specialised skills.

Start-ups compete with established companies by offering competitive compensation packages to attract top talent. Another appealing incentive for B-school graduates is the opportunity to receive Esops, which add significant value to their overall benefits.

And while experience matters, the entrepreneurial mindset is a critical asset in today’s business environment. As companies continue to evolve and adapt to new challenges, the ability to think like an entrepreneur is becoming a defining factor for success at start-ups.

@PalakAgarwal64