- Edtech Startup Udayy Return About $8.5 Mn To Investors after closing its operations.
- The startup had users from over 45 cities and towns across India, with more than 400 classrooms being run regularly.
- AWI and InfoEdge Ventures led Udayy’s seed round in which it raised $2.5 million in January last year.
After three years of its establishment a Gurugram-based edtech startup Udayy shut down its operations. The startup was founded by Yadav, Mahak Garg, and Karan Varshney in 2019.
The edtech startup was offering live learning courses for children in grades between 1 and 5.
As per Yadav, Udayy was a pandemic baby and had not seen the world without the pandemic before. Although it was doing good during the peak months of the pandemic, there seems to be a slow in business after the schools reopened.
According to the startup it had users from over 45 cities and towns across India, with more than 400 classrooms being run regularly.
Yadav said, After the schools reopened, parents showed less interest to pay for the online platform rather than paying for their schools. Besides, the students also didn’t and patience with online classes.
As early as July last year, Udayy began seeing signs of trouble and tested several other models to maintain operations. Startups explored opportunities in offline education institutes but later found them to be extremely expensive.
Even, Udayy launched a free app. It aimed to scale the app before monetising it. Yadav said, It was difficult to monetise the app as it received a lot of traction, but people spent most of their time on it since it was free.
Entrackr, which first reported the development, noted that over 100 employees had been dismissed, or 100% of the company’s workforce.
AWI and InfoEdge Ventures led Udayy’s seed round in which it raised $2.5 million in January last year. Kunal Shah and Better Capital were also in attendance, as well as other angel investors according to reports, the startup raised $10 million from Norwest Venture Partners in February this year.
During the pandemic, the edtech sector was boosted as schools and colleges were closed and students took advantage of online courses and classes. During the period between January 2020 and December 2021, Indian edtech startups raised a total of $6.1 Bn in funding. These pandemic darlings faced challenges as the pandemic eased and schools reopened.
Over 150-200 employees at Mumbai-based educational tech startup Lido Learning were laid off in February.
Several weeks after laying off about 210 educators, Bengaluru-based edtech startup Unacademy laid off roughly 600 employees, including on-roll employees and contractual educators.
Over 600 employees were also laid off by Vedantu, Vamsi Krishna’s unicorn edtech company.
To compete in the new business environment, several edtech startups such as Byju’s, Vedantu, and Unacademy are also focusing on offline education centres.
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