Teachmint, Backed by Lightspeed, Conducts Second Round of Layoffs, Letting Go of Over 70 Employees

• ByStartupStory     |    May 6, 2023

Teachmint, an edtech startup based in Bengaluru and backed by Lightspeed, has reportedly conducted its second round of layoffs amid funding challenges. Sources indicate that over 70 employees were let go during a recent town hall meeting that included the startup’s founders and top management. This news follows a trend of similar actions taken by other startups in response to the ongoing funding winter.

Sources suggest that during this latest round of layoffs at Teachmint, employees in talent acquisition, technical, support, and quality analyst roles were impacted. While the number of affected employees could potentially be higher, the startup is reportedly offering a severance package of three months’ salary. This news is reflective of the challenges faced by startups during the current funding winter.

Teachmint has confirmed the layoffs to Inc42 but did not disclose the exact number of affected employees. The edtech startup stated that it is offering support to those who were impacted and working on improving the efficiency of its operations. A Teachmint spokesperson acknowledged the unfortunate impact on certain roles, but added that the company is proactively communicating with those affected and providing comprehensive assistance. This statement reflects Teachmint’s efforts to navigate the challenges of the funding winter.

Teachmint’s recent layoffs come roughly five months after the startup conducted a previous round of layoffs, which saw around 45 employees let go as part of its restructuring efforts. The education and edtech industry is currently facing significant challenges, with many startups struggling to generate revenue and manage expenses. Teachmint is among those experiencing such difficulties, which may have contributed to the need for further layoffs.

Teachmint’s net loss increased significantly from INR 5.5 crore in FY21 to INR 131.7 crore in FY22, representing a surge of 24X. During the same period, the startup’s revenue from operations amounted to INR 77.45 lakhs, with FY22 being its first year of operations. Teachmint’s advertising expenses also saw a significant increase, rising 14X from INR 2.66 crore in FY21 to INR 36.76 crore in FY22. To extend its cash runway, the startup has recently reduced its marketing expenses. These financial indicators highlight the challenges Teachmint has been facing in terms of generating revenue and managing expenses.

Amidst Teachmint’s recent challenges, its co-founder and CTO, Anshuman Kumar, departed the edtech startup in March to pursue his new venture, Duolop. Teachmint was founded in 2020 by Mihir Gupta, Payoj Jain, Divyansh Bordia, and Kumar. The platform is dedicated to facilitating online teaching and digitizing classrooms through video-based tools. Teachmint has received significant funding from prominent investors such as Lightspeed India, Rocketship.vc, Goodwater Capital, and Better Capital, among others, with a total amount raised of over $118 million in multiple funding rounds.

Teachmint’s Series B funding round in October 2021 raised $78 million, with Rocketship.vc and Vulcan Capital leading the investment at a valuation exceeding $500 million. However, the current funding winter and other industry challenges have resulted in the need for cost-cutting measures, including layoffs. Since the start of 2022, around 20 edtech startups have conducted layoffs to remain operational. According to the Inc42 layoff tracker, the edtech sector alone has let go of over 9,000 employees during this period.

Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.

Follow Startup Story