FrontRow Explores Acquisition Opportunities Following Extensive Workforce Reduction
- ByStartupStory | June 17, 2023
FrontRow, a learning platform specializing in non-academic skills, is reportedly considering acquisition deals in the wake of substantial layoffs that occurred in October of the previous year. According to insiders familiar with the situation, the edtech startup, which bears resemblance to MasterClass, terminated approximately 90% of its workforce in two phases throughout 2022. As a result, the company now operates with a reduced staff of around 40 individuals.
“FrontRow is in talks with a clutch of players to consolidate as it sees no future in running alone and if the acquisition talks fall through, it may shut down as well,” said one of the sources requesting anonymity.
FrontRow made waves in the industry after securing $3.2 million in seed funding from prominent investors Lightspeed, Elevation Capital, and Deepika Padukone’s family office in November 2020. The company continued its fundraising success with a noteworthy $14 million Series A round in September 2021. Entrackr was the first to report on these significant developments, highlighting FrontRow’s growing prominence and financial achievements.
FrontRow’s co-founder Ishaan Preet Singh said they have been running different experiments in the non-academic space to find a product-market fit. “We (founders and investors) had always set a June date for taking a step back and reflecting on the pilots we’re running and while we’ve made a ton of progress, and have a CM positive (albeit very small scale business), we’re having multiple conversations on what’s the best place for the company, including whether the market is large enough to support an independent player or whether this fits better within a larger multi category company. We’ll be figuring this out over the next couple of months,” he added.
As per credible sources, the organization has additionally urged its remaining workforce to actively seek alternative employment opportunities due to a limited financial runway in the coming months.
Singh confirmed that the company also kept the team in the loop here, and helping some of them find alternate jobs. However, he emphasised that the firm has over three years of runway. “This isn’t a capital or runway question, it’s more about making sure that when you raise capital with a vision of building a large scale business, you are honest on whether that’s doable in a particular market as you learn more,” said Singh.
FrontRow was established in 2020 by Singh (previously associated with Lightspeed), Mikhil Raj, and Shubhadit Sharma. It initially emerged as a virtual learning platform catering to creative arts, hobbies, and sports, gaining significant traction during the pandemic when individuals were confined to their homes and online education was gaining momentum.
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