: Opinion: Ed-techs await a new dawn #IndiaNEWS #News By Amit Mishra Startups in online education saw a spike as a result of the ‘stay-at-home’ Covid policy. Now, as India gets back to the ground,

Opinion: Ed-techs await a new dawn #IndiaNEWS #News
By Amit Mishra
Startups in online education saw a spike as a result of the ‘stay-at-home’ Covid policy. Now, as India gets back to the ground, a large number of ed-tech employees are going home.
A stock market meltdown earlier this month did not bode well for the wider economic world, and as a result, startup financing has slowed to a trickle. Indian entrepreneurs raised nearly billion in investment in the first quarter of the year, creating 13 new billion-dollar startups in the process.
Startup Financing
India received over . 7 billion in startup financing in the first half of 2022. In contrast, Indian entrepreneurs had raised nearly billion in investments during the second half of 2021, which is about billion more than they did in H1 2022.
The numbers allude to the fact that the acceleration of venture capital investment has taken a hit in the first six months of 2022. Startups are under tremendous pressure as valuations have started to drop and expounding capital has been more challenging than in the past, especially for those who profited during the times of Covid.
Venture-Capital firms like Sequoia and Y Combinator have put the reins on their invested startups by asking them to cut down on expenses and simultaneously advocating to not lose the grip on the rate of scalability. The consequential effect of economising has transmuted into downsizing while keeping the benchmark of survival and profitability fluid.
A once thriving sector, the ed-tech sector has contributed to the creation of more than 75,000 jobs in India over the past five years and has also helped alleviate the employment problem during the Covid-19 crisis. A report by the IEC validates the numbers.
Different Story
Egregiously, things convey a different story now; of the 12,000 employees who were laid off in the last six months, nearly 30% of them came from the ed-tech space, which formed a big chunk of the downsized corpus. This is the reason why of all the sectors, ed-tech has received the most criticism. In addition to having let more than 4,000 human resources go, it also resulted in the closure of three businesses. Startups in the ed-tech sector have borne the brunt of inordinate funding slowdown.
An ed-tech platform named Lido Learning, which had between 1,000 and 2,000 workers, ceased operations in February. 624 people were let go by Vedantu, while 600 employees of Unacademy lost jobs in April. Ed-tech behemoth BYJU’S has cut at least 600 positions, including 300 from its subsidiary company, Toppr, and 300 from another subsidiary coding platform, called WhiteHat Junior. More than 1,000 of WhiteHat’s workers left in April and May after being invited to come back to the offices.

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