Doubtnut cuts staff, seeks acquisitions, claims report

Gurugram based ed-tech company Doubtnut has downsized its workforce in the past year while there were discussions about a possible acquisition. However, Tanushree Nagori, co-founder, Doubtnut, has confirmed that the downsizing occurred more than six months ago and denied any rumours about being acquired, reported Your Story.

The statement noted that there have been no staff reductions in the company for the last two quarters and no discussions regarding acquisitions in the past 6-8 months.

According to a report by Entrackr, the ed-tech startup has faced difficulties in obtaining new funding and has therefore investigated potential acquisition opportunities with various companies. It has also reduced its workforce by 30-40 per cent. The report also stated that the edtech platform’s lack of revenue and high expenditure resulted in a lack of interest from potential acquirers.

Additionally, another report mentioned that Doubtnut’s expenditure on employee benefits has decreased by more than 80 per cent to approximately Rs 1 crore per month, indicating a reduction in the workforce. The company has also closed down its banking, SSC, and other public commission preparation verticals in the past six to eight months.

However, Nagori mentioned in her statement that Doubtnut has significantly reduced its monthly expenditure by more than 80 per cent, (from Rs 10.6 crore in the previous year to Rs 2.2 crore in March 2023). She also mentioned that the company’s revenue for FY23 was Rs 27.6 crore, which is a 50 per cent increase compared to the previous year.

Since the company plans to achieve profitability in the next 10-12 months, it has chosen to concentrate on fewer categories to accomplish this goal. She added that the company may have temporarily discontinued certain categories to achieve profitability.