During the COVID-19 pandemic, everything from schools to colleges had shut down. During this time, some companies had greatly benefited from online platforms. Especially, companies in the education sector (Edtech Companies) had capitalized on this. The graph of Edtech startup companies’ gains had risen very rapidly during the lockdown. However, these companies haven’t been doing well lately. Companies like Byju’s have been going through significant difficulties. Similarly, a startup company like Doubtnut faced a situation alike and there are reports of it being sold at a heavy loss.
An offer of 11 thousand crore rupees was received
The situation of the Doubtnut startup company is extremely poor. At one point, Byju’s had offered 11 thousand crore rupees to buy this company, but the deal between Byju’s and Doubtnut did not materialize. However, due to the company’s deteriorating condition, it had to be sold to Allen Career Institute for 83 crores. In three years, the value of this startup has decreased by 10 thousand crore rupees.
What and how does this company work?
In 2016, Tanushree Nagori and Aditya Shankar launched a startup. Both founders completed their education from IIT. This startup works on photo identification technology and machine learning, which was highly praised by experts. Anyone could get answers to science and math questions by showing them. Approximately 3.2 crore users utilize this technology.
Byju’s situation is also bad.
On the other hand, the problem of the Edtech company Byju’s has escalated to such an extent that the company’s founder and CEO Byju Raveendran had to mortgage his home to pay the employees’ salaries. Byju’s valuation had once reached up to 22 billion dollars, which has now dropped to 3 billion dollars. Along with this, the company is facing several legal cases as well.