Edtech Startup Udayy Shuts Down, Lays Off All Employees The platform has conducted more than 130,000 classes with over 200 qualified teachers and 50,000 students used its services

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


Udayy, an edtech platform that offers online learning program for grades 1 to 8, has fired all the employees as the business slows down due to the resumption offline classes.

Udayy's co-founder and CEO, Saumya Yadav, as stated in a news report quoted as saying, "It was a very difficult decision but we did it in the best way possible so everyone finds a good place. We started during the pandemic and were doing very well. But when the offline schools opened up, growth stalled and it became very expensive to get new customers and service the old ones."

The platform has conducted more than 130,000 classes with over 200 qualified teachers and 50,000 kids are using its services in 2022, as per the company's website.

Udayy raised around $10 million from US-based Norwest Venture Partners in February and raised $2.5 million in Seed funding a year ago. As per company's statement, they have returned around $8 to $8.5 million to the investors. Also, all the employees including teachers have been paid severance amounts and almost everyone has been placed elsewhere.

"We reached out to about 30 companies and were successful in securing a job for all our employees. We have refunded all our customers their money. We had raised around $13 million and had used up around $4 to $4.5 million, remaining around $8 to $8.5 million will be returned to the investors. The legal process is going on and it should take around two months to complete." Yadav added in the statement.

Many tech platforms have either shut down or restructured their operations. In February, edtech startup Lido Learning shuts down citing similar reasons. Last week, edtech platform FrontRow restructured its operational mode and announced the layoffs. Some other edtech firms are also adopting a slow pace in funding and some of them, which includes Unacademy and Vedantu, have reduced its employees to manage the operational cost.

Amidst all these, many edtech platforms are currently transforming into hybrid learning models that includes both online and offline mode of learning. Commenting on the same in the statement, Yadav said, "We evaluated the offline mode of learning. However, we were at a very early stage and the growth through the offline would have been equally difficult."

Advanced technologies like artificial intelligence and augmented reality are expected to drive the global edtech industry through game-based learning, hybrid models and mobile-based learning, as per market research.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

Related Topics

News and Trends

Figr Raises $250,000 In Pre-Seed Funding

In an official release the company said it plans to use the new capital to grow its engineering team and continue to evolve its product to solve different parts of the design process


Survival Kit for Solopreneurs: 5 AI Tools to Maximize Productivity

The entrepreneurial journey is not a straightforward one. Rather it requires the founder to don multiple hats for marketing, sales, ideation, content curation, and raising funds. Solopreneurs of today are being molded to lead the businesses of tomorrow. And they do require some helping hands in the form of artificial intelligence.

Starting a Business

5 Solopreneur Mindset Shifts and Why They're Critical to Your Success

As a solopreneur, don't reinvent the wheel or start from scratch. You are here because you have two things: an idea and passion.

Business News

These NYC Roommates Created a Fake Restaurant and Accidentally Garnered a 2,000-Person Waitlist — So They Opened a Pop-up for Real.

The Gen Z'ers dubbed their apartment "Mehran's Steak House" on Google Maps during the pandemic.

Business News

Costco Isn't Facing Devastating Surges in Theft Like Target and Walmart — and the Reason Is Very Simple

The retailer's CFO revealed its strategy during a fourth-quarter-earnings call.

Business News

Netflix Is Mailing Out Its Last DVD Today. I Got the Very First One 25 Years Ago.

Netflix co-founder and founding CEO Marc Randolph tells the story of the first Netflix DVD that got sent in the mail — and one he wished never went out the door.