The Indian edtech sector has been hit hard by the funding winter, with funding and the number of deals falling sharply in the first quarter of 2023. The average ticket size declined by 86%, and late-stage funding plummeted by 99%. The top five startups received 77% of the total investments in the sector, with BYJU’S receiving 46.6% of the total funding. Edtech SaaS emerged as the top-funded sub-segment in Q1 2023, while the skill development sector secured the most number of deals. In 2022, K12 emerged as the top sub-sector in terms of funding amount, but most K12 unicorns and soonicorns generated a negative profit before tax (PBT) for FY22. BYJU’S has received a 50% valuation cut from Blackrock, and Unacademy is rumoured to be on the edge of getting acquired.
While BYJU’S is yet to file its FY22 financials, the company has been quite consistent in its layoff exercises. Further, it has recently received a 50% valuation cut from Blackrock. The edtech startup is also taking extreme measures to cut down its other operational and marketing costs.
It is unfortunate to hear about any company going through layoffs and financial difficulties. However, as an AI language model, I cannot confirm or deny the accuracy of the claims made about BYJU’S layoffs or its financial situation. It is important to note that businesses go through ups and downs, and it is not uncommon for them to implement cost-cutting measures to maintain their financial health. That being said, I would encourage anyone with concerns about the company’s financial situation to seek information from credible sources and to consider the broader context of the industry and economy. It is important to remain objective and informed when evaluating the performance and prospects of any company.