Edtech Start-Up Lido Learning Shuts Shop, Lays Off Over 150 Employees

Lido Learning's employees and vendors took to social media and professional networking platforms, complaining about delayed payments and no salaries for nearly two months

In September last year, Lido Learning announced it had raised $10 million, led by Ronnie Screwvala's Unilazer Ventures. Image: Getty

New Delhi: Mumbai-based edtech start-up Lido Learning, which is backed by entrepreneur Ronnie Screwvala, has shut its operations, forcing its workforce to seek help through social media platforms. The company has also laid off around 150 employees, according to news report.

Lido Learning's employees and vendors took to social media and professional networking platforms, complaining about delayed payments and no salaries for nearly two months, according to news agency report.

"My 1st worst experience in the edtech industry. The company closed its business suddenly in the morning, 2 days before salary day without giving any notice to anyone. It is no other than Lido," Rishabh Kumar, assistant marketing manager at Lido Learning, posted on LinkedIn.

"Everything was going well and suddenly on February 4, 2022, an official town hall was announced in the morning. The founder announced that the organisation is having no funds to run its business and they are shutting it down," he said.

According to employees, Lido Learning's Founder Sahil Sheth addressed the town hall meeting, informing them that the start-up is going through financial constraints. The firm has raised nearly $24 million to date.

In a report by IANS, another former Lido employee who quit in November posted on LinkedIn that he was still unpaid despite several attempts.

According to sources, that Lido Learning has shut operations and has sent email notices to its employees. The start-up was yet to make an official announcement on shutting its operations.

"What happens to the 40k to 80k paid by parents to #LidoLearning - whatever little they collected, should be returned back as they shut shop right or all of that money goes down the drain for parents? Am sure then they will drag Lido to court and rightly so!" Akshay Shah - Founder CEO, iWeb, posted on Twitter.

In September last year, Lido Learning announced it had raised $10 million, led by Ronnie Screwvala's Unilazer Ventures. Lido Learning had said it will use the money to fuel its expansion plans in India as well as expand its global footprint.

In a LinkedIn post, Nitish Banka, who is a Supreme Court lawyer, sought fair treatment for teachers/students and employees at Lido Learning.

"I have been informed that the employees and teachers who have put in hard-earned efforts into running this startup Lido Learning are not getting paid due to the startup facing funding issues," he said, while adding, “I want the start-up to treat all their employees, students and teachers or face legal action.”

The start-up told teachers in an email that it "was facing financial difficulties" and is committed to "pay your dues, as mentioned in your service agreement, in the next 90 days".

Founded in 2019, Lido Learning provides small-group online tutoring to kindergarten to grade 12 students. It offers classes in maths, science, coding, and English.