The edtech ecosystem continues to see misery as another unicorn company, LEAD, has let go of about 100 of its employees. The edtech startup said that there has been a “reduction in workforce” of less than 100 people, while it has not disclosed the precise number of staff members it has let off.
“We have concluded our performance appraisal process last month and each year, we experience some churn during this time. The resulting reduction in our workforce is less than 100 persons and is majorly due to performance-related reasons,” a LEAD spokesperson said.
“LEAD’s current employee strength is around 2200 persons; and we would like to assure all our stakeholders that we are adequately staffed for our growth aspirations. With schools across India now open again, the School Edtech segment is poised for growth, and LEAD is bringing innovation and transformation back to these institutions,” the spokesperson added.
Nevertheless, according to certain media sources, the edtech company laid off about 100 people.
LEAD raised $100 Mn in Series E funding in January of this year, becoming the first edtech unicorn of the year. Westbridge Capital and GSV Ventures took the lead in the funding round. The startup stated it would keep expanding its reach across the nation while hiring top individuals at the time of fundraising.
Sumeet Mehta and Smita Deorah launched the LEAD organisation in Mumbai in 2012. It helps educational institutions to create an integrated teaching and learning system by merging technology, curriculum, and pedagogy.
Another edtech unicorn, Vedantu, just let go of almost 100 employees in July, joining the startup ecosystem’s recent talk of layoffs, funding winter, and investment pressure. Vedantu requested its full-time staff members from multiple teams to turn in their letters between July 4 and July 9.
Beginning with the slow time, the edtech industry has been one of the worst affected, with layoffs at Unacademy, Toppr, WhiteHat Jr., and Lido, among other companies.
even two of the educational tech start-ups, Udayy and Crejo.
11,363 employees have been let go by 34 Indian firms, according to a Layoff Tracker.
Additionally, 9,659 workers have been laid off so far, with the largest number of layoffs occurring in the edtech sector, followed by consumer services and e-commerce.