New Delhi: India is home to one of the fastest-growing EdTech startups that announced a new round of layoffs this week, reducing its number of employees by almost a fifth. Having experienced an aggressive growth in the period when online learning was in boom, the company is currently experiencing a pressure on revenues and the rate of student enrollments.
According to insiders, the financial strain was caused by extensive marketing expenditure, a high rate of hiring and international expansion plans. As offline education goes back to normal and competition increases, growth figures have reportedly not been as high as forecasted.
The management has termed the layoffs as a strategic restructuring that will enhance its profitability and core markets. Even so, former employees have complained via social media regarding abrupt job loss and absence of long-term stability.
The Indian EdTech market has faced pressure during the last two years. Investors are no longer focusing on growing users but they want well-defined profit avenues. This change has compelled most start-ups to be mindful of expansion tactics.
