This Ed-Tech Platform Backed By Naukri-Founders Shuts Down; All 100 Employees Fired

As the growth for the online and live learning model stagnated, the Edtech startup Udayy decided to shut shop.

Co-founder Saumya Yadav attributed the stagnation to the fact that kids have started moving back to schools in the post-pandemic world.

Failure in Post Pandemic World

Yadav said that the post-pandemic world was being witnessed by Udayy for the first time. The company faced problems in growing the original model of online, live learning as the kids went back to school. Multiple varied strategies and adjacent pivots were evaluated by the startup but all in vain as it bore no fruit.

Giving credits to the Our investors, team members, and customers for being very supportive, the startup decided to shut shop rather than pouring more time and money on it.

As many as hundred employees who were a part of the organization were laid off, post shutting down the shutter. The firm paid the ex-employees with a severance package and helped them find new jobs. 

This development was reported first by Entrackr, the firm laid off over 100 employees and decided to shut operations.

Layoff, Employee Assistance & Severance

Money was refunded to the customers as well as a generous severance to our team members and teachers was paid. Nearly 100 percent of their  employees were assisted to find jobs elsewhere. Yadav said “We are returning the remaining capital, around USD 8.5 million back to our investors.”

The startup was founded by IIT Delhi and Stanford University alumni Yadav, Mahak Garg, and Karan Varshney, alumni of IIT Delhi and Stanford University, the company, a live-learning platform for students of Grades 1 to 5, had its first angel funding round in June 2019.

In a seed funding round led by Alpha Wave Incubation (AWI), managed by Falcon Edge Capital and InfoEdge Ventures the startup raised $2.5 million in January 2021.

When it comes to laying off employees, Udayy joined the list of companies. So far in 2022, startups have laid off over 5,600 employees citing a funding crunch.

The funding crunch has hit edtech companies the hardest, as they have laid off about 3,600 employees, accounting for about 64 percent of the total layoffs.