The Silicon Review ^Asia

The Edtech space is facing a crunch due to a lack of funding

The EdTech industry has brought about new technological implementations in children's education. However, with the opening of offline classrooms, a few EdTech companies are in peril. One such company is Udayy. The startup has decided to shut shop and has laid off around 100-120 employees. Co-founder Saumya Yadav confirmed the news and said their business no longer made sense in a post-pandemic world. The startup was founded in 2019 by Saumya Yadav, Mahak Garg, and Karan Varshney and offered services to around 5000 students. The firm raised $10 million from North-west Venture Partners and also raised $2.5 million in a seed funding round led by Alpha Wave Incubation, managed by Falcon Edge Capital and InfoEdge Ventures. The company's core product was English Learning Courses, but they were unable to find buyers for the same.

Many other EdTech startups are in the same boat as many find it difficult to continue operations. Lido Learning and FrontRow are a few among them. Unacademy and Vedantu have also retrenched employees to cut costs. The Edtech space is facing a crunch due to a lack of funding. Several companies have realized that adopting hybrid models is the only way forward and are venturing into both online and offline classes.