Ronnie Screwvala-Backed Edtech start-up Lido Learning has filed for bankruptcy and insolvency at the National Company Law Tribunal in Mumbai. Due to a shortage of funds the company halted its operations back in the month of February. It also laid off around 1,200 employees.
The Lido Learning board of directors Lido Learning passed a special resolution to submit an application under Section 10 of the Insolvency and Bankruptcy (IBC) code of 2016, based on the submissions to the Ministry of Corporate Affairs.
The company wrote in Ministry of Corporate Affairs filing,”Resolved that, pursuant to section 10(1) of the Insolvency and Bankruptcy Code, 2016in light of the fact that the business is not able to pay its debts that are due and that there are insolvencies incurred by the company and the company’s consent from the shareholders granted to file an application or petition i.e. the initiation of the corporate insolvency resolution process the corporate applicant to be filed with the National Law Tribunal.”
According to numerous sources, the company that was cash-strapped also defaulted on the pay of former employees. This happens in a period when funding shortages have forced numerous reductions in compensation and layoffs at Indian Edtech start-ups.
Other investors with a name, like Vijay Shekhar Sharma (the CEO of Paytm) and Anupam Mittal have also been a part of Lido which is in direct competition with other edtech startups, such as upGrad by Ju’s Unacademy along with Vedantu (founder Shaadi.com). Shaadi.com).
Established in the year 2019 by Sahil Sheth The Bangalore company provides live classes online to youngsters from KG up to 9th grade for Science, Maths, English, and Coding. Their technology makes school curriculum easily understandable and the tuition fun so students learn faster, gains knowledge faster, and does more.