News Update

Cuemath Founder Manan Khurma Returns as CEO as Company Trims Workforce

• ByStartupStory     |    May 8, 2023

CueMath, a math learning startup backed by Sequoia Capital, is the latest edtech company to reduce its workforce due to mounting losses and a funding crunch. The Bengaluru-based firm will lay off 100 employees across functions, according to a company spokesperson. In a LinkedIn post, Founder and Chairman Manan Khurma announced the layoffs and revealed that he would take over as CEO, with current CEO Vivek Sunder moving into an advisory role.

Cuemath’s Founder and Chairman, Manan Khurma, has announced that he will resume the role of CEO in a LinkedIn post. He stated, “Given the need to deeply focus on building a great learning and consumer experience (LCX), I will get back into the role of running the company day-to-day as CEO.” Khurma also mentioned that the current CEO, Vivek Sunder, will transition to an advisory role and continue to work with the team. According to Khurma, Sunder is a “phenomenal hyper-scale business operator” and will be working on areas such as acquisition funnels and GTM strategies.

Cuemath, which recently appointed Sunder as its CEO, has announced a reduction in its workforce to align with its increased focus on LCX and retention. “While acknowledging the impact on talented employees who have contributed significantly to the company, Cuemath remains committed to supporting affected colleagues for a smooth transition into their next professional journey”, according to Khurma, the company’s spokesperson.

Cuemath’s recent developments follow the release of its FY22 financial results, which revealed a 66% increase in losses from Rs 130.7 crore in FY20-21 to Rs 216.6 crore. The online math learning platform, backed by Sequoia Capital, reported spending Rs 125 crore on employee benefits, making it the company’s biggest expense according to its financial statements. Founded in 2013, Cuemath is based in Bengaluru and operates in over 70 countries. The company’s goal is to expand its reach to more than 100 countries by FY23, including North America, APAC, the UK, Europe, the Middle East, Africa, and South America.

Cuemath has secured a total funding of $126 million across nine rounds, as per Tracxn data. The startup recently raised $57 million in June 2022, with Alpha Wave Global as the lead investor, at a valuation of $407 million, representing more than a two-fold increase in its previous valuation. The edtech industry experienced a boom during the COVID-19 pandemic, resulting in significant growth. However, with the resumption of offline classes and a funding winter, edtech companies are currently facing challenges.

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