Edtech unicorn Vedantu follows Unacademy, Lido Learning, lays off 200 employees

Edtech unicorn Vedantu Innovation has become the latest edtech startup to lay off employees joining the likes of Unacademy, and Lido Learning, nearly eight months after becoming a unicorn.

Vedantu, which got the unicorn tag in September last year after raising $100 million as a part of its Series E funding round led by ABC World Asia, has laid off about 200 employees or 3.5% of its total strength, said a spokesperson for the company. Of the 200 employees, 120 are contractors and 80 are full-time employees, the spokesperson added.

“We have an annual contract with them (contractors), and at the beginning of every academic year, we follow a process of load rebalancing where we rejig pertaining to these roles, based on our growth expectations,” the spokesperson said.

“Reassessment cannot be done in the middle of the year as the learning experience and continuity of the teachers throughout the year is our first priority. With more technology intervention, restructuring of the class format, and changes in the categories, we relook at these roles of our academics and assistant teachers,” the spokesperson added.

The spokesperson also said that the company will be hiring more than 1,000 employees in various teams including 100 for similar positions.

Vedantu’s move of laying off employees comes amid murmurs that the edtech sector in India is slowing down with schools and physical tuition classes reopening, thanks to decreasing Covid-19 cases across the country. So far this year, edtech unicorn Unacademy has laid off 10% of its workforce or 600 employees, while Lido Learning has laid off over 1,000 employees. The edtech sector has also got just one unicorn so far in 2022, against three in 2021.

To be sure, the edtech sector had witnessed two consecutive years of hypergrowth after the country had to lockdown millions of students indoors in 2020 to curb the spread of the contagious Covid-19.