Edtech start-up Udayy, which supplied a web based studying platform for grades 1 to eight, has shut store and laid off all its 100 staff because the agency was unable to handle sustainable development in a hyper-competitive edtech section.
Udayy’s co-founder and CEO Saumya Yadav confirmed the event to FE. Till date, the start-up has raised over $10 million in funding, together with from outstanding buyers resembling AlphaWave, InfoEdge and Better Capital.
Udayy turns into the sixth agency within the edtech house to put off a major proportion of its staff this calendar yr amid a crunch for contemporary rounds of funding.
“It was a very difficult decision but we did it in the best way possible so everyone finds a good place. We started during the pandemic and were doing very well during the pandemic. But, after the pandemic when offline schools opened up, growth stalled and it became very expensive to get new customers and service the old ones,” Yadav informed FE.
Founded in 2019 by Karan Varshney, Mahak Garg, and Yadav, the edtech platform supplied maths and English coaching to youngsters within the age group of 6-11 years utilizing an interactive on-line classroom of 3-5 youngsters in every batch. It additionally launched a free app offering each day worksheets for college students.
According to the corporate’s web site which is now defunct, it has carried out greater than 130,000 courses with over 200 certified academics and 50,000 youngsters are utilizing its companies as of 2022.
Yadav informed FE that after the corporate shut down operations in April, it went on to supply outplacement companies to all of the affected staff. Udayy additionally supplied a severance bundle to staff, and a medical health insurance bundle, in response to Yadav.
“We reached out to about 30 companies and were successful in securing a job for all our employees…We have refunded all our customers their money. We had raised around $13 million and had used up around $4-$4.5 million, and the remaining around $8-$8.5 million will be returned to the investors. The legal process is going on and it should take around two months to complete,” she added.
So far in edtech, Unacademy has laid off round 1,000 staff, whereas Lido has shut store after letting go of round 150 staff. Most lately, Vedantu fired 624 staff, citing a tricky macroeconomic backdrop and challenges from offline teaching centres regaining prominence.
On Monday, group studying platform FrontRow additionally laid off 150 staff of its whole workforce of 500, citing a money crunch. Apart from this, the much-hyped metaverse-based edtech start-up, Metaversity, based by former Twitter India chief Manish Maheshwari laid off one other 20 staff final week as the corporate did not take off.
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Source: www.financialexpress.com”