After raising millions of dollars in fresh capital last year, Edtech unicorn Vedantu Innovation Pvt Ltd laid off employees.
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Vedantu Fires 200 Employees
Vedantu, has become the latest edtech startup which operates a live tutoring platform, has laid off 200 employees, as per the latest updates.
This has happened almost seven months after the Tiger Global-backed company’s entry into the unicorn club.
Now, this Bengaluru-based company has joined the league of more than half a dozen growth-stage startups who have recently fired a significant chunk of their workforce.
In a statement, Vedantu’s spokesperson said, “We have over 6000 employees out of which ~120 contractors and 80 full-time or 3.5% of the total strength, are academics or assistant teachers were being reevaluated. We have an annual contract with them, and at the beginning of every academic year, we follow a process of load rebalancing where we rejig pertaining to these roles, based on our growth expectations…,”.
Lay Off Without Prior Notice
At one side, the firm said that it has maintained it’s a part of re-evaluation.
On the other hand, several employees claimed that the company has served them pink slips without any prior notice.
The Edtech unicorn is also hiring over 1,000 employees in various teams including 100 plus for similar positions, according to the company’s spokesperson.
If we track the firm’s journey, it was the third edtech startup that entered the unicorn club in 2021 along with Eruditus and UpGrad.
In terms of business, its core offering covers online classes from grade 6 to 12 along with materials from grade 1 to 12 and JEE.
During May 2020, edtech has also ventured into kids coding space (ages 6 to 12).
Vedantu Live Interactive Classes
It is noteworthy here that Vedantu was the frontrunner to acquire Ronnie Screwvala-backed edtech startup Lido Learning which was on the verge of shutting down due to lack of funds.
Besides this, the firm has recently introduced live interactive classes starting at Rs 5,000 a year.
Not The First Time
If we talk about the layoffs in the ecosystem, several growth and late-stage companies have trimmed their workforce to extend their runway.
They also do it to conserve cash as the funding environment has turned tepid.
For instance, the social commerce company Meesho has earlier sacked more than 150 employees.
Similarly, the edtech unicorn Unacademy fired over 600 employees in a cost-cutting drive in the same month.
Others like Furniture rental startup Furlenco, edtech company Lido, social commerce platform Trell and bookkeeping startup OkCredit also shrunk a notable chunk of their employee base this year.
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