Ronnie Screwvala-Backed Edtech Firm Lido Learning Files For Bankruptcy
The board of directors of Lido Learning has passed a special resolution to submit an application under Section 10 of the Insolvency and Bankruptcy Code 2016. This comes at least seven months after the edtech firm abruptly fired 1,200 employees and asked them to leave.
According to the firm's MCA filing, Resolved that pursuant to Section 10 of the Insolvency & Bankruptcy Code, 2016, considering the facts that the company is unable to pay its due debts and there are defaults made by the company, the consent of the shareholders be and is hereby accorded to file an application/petition, i.e., initiation of Corporate Insolvency Resolution Process by the corporate applicant, be filed before the National Company Law Tribunal
High-profile investors in Lido Learning include Upgrad creator Ronnie Screwvala, Paytm CEO Vijay Shekhar Sharma, and Shaadi.com's Anupam Mittal, among others.
Edtech startups like Unacademy and Vedantu have also let off employees in recent months. LEAD, which recently entered the unicorn club after collecting $100 million, was the latest edtech business to lay off employees earlier this month.
Early-stage edtech businesses like Lido Learning have also laid off employees, while learning platform Udayy has shut down and laid off the whole team. Startups such as Meesho, Furlenco, Cars24, MFine, MPL, OkCredit, CitiMall, and Fraazo have also laid off employees. Notably, the majority of these firms have received substantial funding by 2021.
