InfoEdge-backed EdTech start-up Udayy shuts down, laying off all 100 employees as schools, colleges, and physical tuition centres reopen.
Co-founder of the EdTech, Saumya Yadav, shared that the start-up was witnessing the post-pandemic world for the first time as "as the kids went back to school, we faced roadblocks in growing the original model of online, live learning".
"After a lot of deliberation, we decided that it's better to shut down the business than to spend more time and capital on it,'' Yadav added, as stated in a report by IANS.
Start-up news coverage portal Entrackr first reported this development.
The company has also paid severance packages and assisted the employees to find new jobs. According to the recent media reports, Yadav stated that, "We are returning the remaining capital, around $8.5 million back to our investors,"
Students from Classes I to V were being catered to by this live-learning platform.
In a seed funding round, the organisation raised a total of $2.5 million. This round was led by Alpa Wave Incubation (AWI) managed by Falcon Edge Capital and InfoEdge Ventures.
After Lido Learning, Udayy is the second EdTech platform that has completely shut operations.
In India, over 8,000 start-up workers have been hit recently by layoffs, which were led by EdTech platforms. This comprises more than 1,000 employees at WhiteHat Jr, over 600 at Unacademy, over 424 at Vedantu and over 150 at Lido Learning.
Approximately 150 full-time and contractual employees were laid off by another EdTech firm FrontRow earlier this week. The Bengaluru-based non-academic upskilling start-up fired almost 30 per cent of its workforce, owing to a fund crunch and the market downswing.
Start-ups that have laid off employees, apart from EdTech firms, in the past few months include companies like the social commerce platforms Trell (more than 300) and Meesho (150), used cars platform Cars24 (More than 600) and digital health platform Mfine (more than 500), amid others.
