5/27/2023 0 Comments Salman academyIn the recent past, multiple edtech peers like Vedantu, Invact Metaversity and FrontRow have sacked several employees to reduce their cash burn, while Lido Learning and Udayy each fired all of their 100-plus staff and shut shop because their entirely online teaching models didn’t yield desired results. Speaking on the condition of anonymity, a venture capital investor with investments in edtech unicorns said although there is still an appetite among equity investors (venture capitalists and PE funds) to invest in edtech players in India, the investments would be reserved only for profitable players. Unacademy to lay off 12 pc employees as it aims to turn core biz profitable: CEO Each unit caters to individual exam coaching for UPSC, IIIT-JEE, NEET and other govt exams categories,” a source close to the company said. “K-12 and test prep businesses are the most profitable units for the firms, and they internally have classified these units into three categories, named Business Unit-1, Business Unit-2 and Business Unit-3, with each having a business head. They also indicated that only certain verticals such as core K-12 NEET, UPSC and IIT-JEE are currently making profits for the firm. Sources said Unacademy is also considering hiving off or shutting down more subsidiaries, particularly to protect its cash runway during the ongoing funding winter. “The job cuts are expected to take place across the test-prep division and the recently demerged CodeChef company’s employees as well,” one of the sources said.ĬodeChef, a platform for competitive programming used by both students and professional programmers, on Wednesday said it has demerged from Unacademy and will operate as a standalone enterprise, with its current team leading the firm. With the latest round of layoffs, at least 1,200 of its employees stand affected, including the 150 employees in June and the 600 workers the company fired in April. More rationalisation at Unacademy as funding winter bruises edtech unicornsīefore the current round of layoffs, the SoftBank-backed startup had sacked about 10% of its workforce, or around 350 employees, in November 2022, citing unfavourable market conditions and the ongoing funding slowdown for tech startups.
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