Ronnie Screwvala-backed dtech startup Lido Learning to file for bankruptcy
Ronnie Screwvala-Backed Edtech start-up Lido Learning has filed for bankruptcy and insolvency with the National Company Law Tribunal in Mumbai. Due to a funding shortage, the company shut down operations in February of this year and let go as many as 1,200 employees.
The board of directors of Lido Learning passed a special resolution to file an application under Section 10 of the Insolvency and Bankruptcy (IBC) code 2016,according to the filings with the Ministry of Corporate Affairs.
The company said in Ministry of Corporate Affairs filing,“Resolved that pursuant to Section 10 of the Insolvency and Bankruptcy Code, 2016, considering the facts that the company is unable to pay its debts which are due and there are defaults made by the company, the consent of the shareholders be and is hereby accorded to file an application/petition i.e. initiation of Corporate Insolvency Resolution Process by the corporate applicant be filed before the National Law Tribunal.”
Numerous sources state that the cash-strapped start-up also defaulted on the payment of the former employees. The change occurs at a time when financing shortages are forcing numerous layoffs and compensation cuts at Indian edtech start-ups.
Other well-known investors, including Vijay Shekhar Sharma (the CEO of Paytm) and Anupam Mittal, have also backed Lido, which has been in competition with other edtech businesses including upGrad, Byju’s Unacademy, and Vedantu (founder of Shaadi.com).
About Lido Learning
Founded in 2019 by Sahil Sheth, the Bangalore based company offers live online classes to children from KG to Class 9 for Maths, Science, English, and Coding. Their tech makes school syllabus understandable & tuitions exciting so every student studies smarter, learns faster, & achieves more.
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