Edtech unicorn Vedantu is laying off 424 employees, or about 7 percent, of its workforce as the Tiger Global-backed company is expecting a scarcity of funds in the coming quarters amid a slowdown in global financial markets, according to its co-founder and Chief Executive Officer Vamsi Krishna.
"Currently, the external environment is tough. War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India as well. Given this environment, capital will be scarce for upcoming quarters," Krishna told Vedantu's employees in a blog.
"With Covid tailwinds receding, schools and offline models opening up, the hyper-growth of 9X, Vedantu experienced during the last 2 years will also get moderated. For long term sustenance of the mission, V would need to adapt too," Krishna added.
Krishna said that the company is looking to create a runway for at least 30 months without compromising on its core value of student centricity and it will focus on reduction in customer acquisition cost via innovation and automation around operations.