After laying off the majority of its workforce recently, Lightspeed-backed EdTech start-up FrontRow has now shut its operations, stated a report in The New Indian Express.
After almost three-and-a-half years since it started, founders have now realised that the market is not very large. The online learning platform focused on creative arts and sports and offered classes taught by celebrities in fields such as cricket, comedy and music.
Co-founder of FrontRows speaks
Ishaan Preet Singh, Co-founder, FrontRow, told The New Indian Express that 90% of start-ups don't work out and they don't have regrets. "We have realised that the market is not very large and that is the reason for shutting down our operations," he said, adding that with COVID, it took them a little bit longer to realise the market potential as during the pandemic, people were free and had more leisure time.
The start-up is exploring potential acquisition, and if it does not materialise, founders are planning to return the capital.
"We are still figuring it out and will take a few weeks to a couple of months to decide on this," the Co-founder said.
The funds and the backers
FrontRow had over 350 employees but after the layoffs last October, the company employed only 30 people. Founded by Ishaan Preet Singh, Mikhil Raj and Shubhadit Sharma, the start-up had so far raised about $18 million and its largest funding round was in August 2021 — $14 million. The start-up was valued at $49.9 million in October.
According to Tracxn, the start-up counts Elevation Capital, Eight Roads Ventures and Unacademy's Gaurav Munjal, Ashneer Grover, among others, as its backers.
The Co-founder also said that it is unfair to blame the market, ecosystem or funding environment as eventually, only 5-10% of start-ups work out. "I will not blame the funding environment. We had a belief/opinion that it was a large market and our opinion was wrong and that is okay as it happens with many companies," he said.
