Backed by Ronnie Screwvala, the edtech startup, Lido Learning has shut down its operations, according to the sources known to development.
Startup Shutting Down
So far, Edtech has been one of the top segments in terms of fundraising and gaining traction for the past couple of years.
It seems that some startups in this space are either choosing to consolidate with larger groups or shut down their operations altogether.
Sources said, “Lido Learning has shut its operations with a sudden notice over email to its employees. This is one of the bizarre overnight shutdowns in which employees had no idea about it until they received the email,”.
The same was informed by Lido Learning’s assistant marketing manager Rishabh Kumar, as help posted a note on LinkedIn about the same.
Further Kumar said, “..Everything was going well suddenly on 4 feb 2022 , an official town hall was announced in the morning. The founder announced that the organization is having no funds to run its business and they are shutting it down,”.
Interestingly, Lido Learning had raised $10 million in a round led by Ronnie Screwvala’s Unilazer Ventures in September last year.
Besides this, the startup had also announced its entry into the U.S. and Canada during the same month.
They were planning to expand into India and overseas with the new funds.
The Mumbai-based startup was offering live online tuition classes to students between classes KG to Class 9 in Math, Science, English, and coding from CBSE and ICSE boards.
The subscription cost started from Rs 50,000 and went up to Rs 140,000.
Why Did This Happen?
Sources say that “The company had tried hard for a large financing round, however, it failed to convince new investors,”.
Many vendors and employees from three-year-old Lido Learning have been complaining about payment dues and salary delays on social media.
According to them, the company has stopped responding to their messages.
So far, there is no response from Lido Learning about the queries.
Last year, Lido Learning had raised $7.5 million in its Series B round led by BAce Capital in October.
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