Udayy, the edtech startup that was launched in 2019, had to let go its entire staff and close down for good. That means, about 100-120 employees have been rendered jobless.
Co-founders Karan Varshney, Saumya Yadav and Mahak Garg — alumni of IIT Delhi and Stanford University — had launched the Company to offer learning and educational services to students from kindergarten to Class VIII. It was serving about 5,000 students a month.
The reason for slow business has been the reopening of schools. There were few takers for its offerings now that classes have resumed offline. Also, with students studying offline, they have little time to spend on online courses and most of those who had registered sought refund.
All those laid off have been paid satisfactory severance packages and most have found alternative employment with support from the Company.
The edtech startup had managed to raise funds to the tune of about $10 million from American investors, Norwest Venture Partners in February. Last year, it had raised $2.5 million in seed funding, led by Alpha Wave Incubation (AWI).
The Company has reportedly given back about $8 million to the investors.
Udayy is not the only edtech startup to have been affected by the ‘drying funds’ phenomenon. Recently, Lido Learning too let go about 1,200 employees, and that too just months after raising $ 10 million in funds.