It seems like the education tech industry in the India has truly burst with many companies being forced to downsize and scale down their operations. Udayy, another player in the edtech industry has just announced that they have ceased all operations and have shut down and have let go of all of their employees.
This has mainly taken place as growth continues to flatline or recede once schools started to reopen and start their regular in person classes. The company’s spokes people said that the company was founded during the pandemic and the past few months was the first time ever the company had to traverse through a non-pandemic time. Once students started going back to educational institutions, the company started finding it difficult in scaling their online business and retaining their existing customers let alone new ones. They studied various avenues to explore but none of them had the potential they were expecting.
Therefore, after a lot of back and forth, they concluded that it makes more sense to stop the business than to waste a whole lot of capital, time, and effort on it. Everyone involved in the company including investors have given the green light to the decision.
Close too 100 people were employed to the company and they will all be unfortunately laid off and without work. But the company has paid everyone a severance package and is assisting them in getting them new jobs.
The company has also refunded all the money to their customers and even partner educators have received severance package. Almost every employee now has been able to find employment elsewhere and with the help of Udayy and the unused investments amounting to around $ 8.5 million USD will be given back to the investors.
The company was founded 3 years ago back in 2019 a group of alumni of IIT Delhi and Stanford University and they began the company with live classes for kids studying in classes 1 to 5.
Almost a year and a half ago, the company was able to raise $2.5 million USD in funds.
The edtech industry in India has its glory days behind them and its well past its peak. Many companies in the industry have been forced to let go of their employees and down size their operations after they grew leaps and bounds during the pandemic as schools were shut. The edtech industry in India is now traversing through difficult waters and it will take time for companies in the field to get back to usual business.
