New Delhi: Online math studying platform Cuemath has laid off 100 extra workers amid a difficult macroeconomic atmosphere for edtech corporations, the media reported on Saturday. Peak XV Partners (previously Sequoia Capital India) backs the startup.
“Unfortunately, our revenue and cost trajectories are still divergent from expectations, and our problems are compounded by the bad macro situation around capital availability, particularly for edtech,” Cuemath’s Founder and CEO, Manan Khurma, advised workers in an electronic mail dated August 25, which is seen by Moneycontrol. (Also Read: Turn Rs 50 Lakh Investment Into Rs 7 Lakh PER MONTH Earnings: Start This High-Return Business Venture)
“This means that we will have to move to a leaner team structure, in which some roles will get redundant. That exercise is being carried out today,” he added. (Also Read: Jeff Bezos Paying Rs 5 Crore Monthly Rent To This Musician)
In May, the corporate had laid off about 100 workers to enhance efficiencies amid a worsening world panorama for Okay-12 edtech.
“Post the May8 exits, I had said that hopefully the company will not need to take a similar action again. And at that point, I had full conviction in saying that. But clearly, I had underestimated the extent of the turnaround required to get the company into a healthy situation,” Khurma was quoted as saying.
“For what it’s worth, I and our leadership team worked very hard in the last few weeks to avoid this outcome. But we’ve come to the conclusion that we still have a long way to go and this action is inevitable,” he added.
When Cuemath introduced layoffs in May, Khurma had returned as the corporate’s full-time CEO, succeeding Vivek Sunder. Sunder got here to Cuemath from Swiggy, the place he served as chief working officer.
Cuemath, based in 2013 by Manan and Jagjit Rai Khurma, gives an after-school on-line math program for college students in grades Okay-12. In March, on-line increased training firm upGrad laid off almost 30 p.c of its workforce at its subsidiary “Campus”.
According to main startup masking portal Entrackr, citing sources, a scarcity of VC funding has prompted layoffs within the startup ecosystem, affecting particularly late-stage organizations.
