Cuemath, an edtech company, terminated over 100 employees due to the adverse macroeconomic environment for startups. About 100 employees of the Google-backed company received pink slips in May.
“We’ve taken the difficult decision to reduce the size of our team as part of a restructuring exercise across the company. In this process, we will be bidding goodbye to 100+ talented Cuemath employees,” a Cumath spokesperson said.
“Over the past few months, we have made a lot of good progress – on making our product experience stronger, growing our revenue base, and improving key operating metrics, while still keeping costs under control. We are one of the few edtech players that have very healthy renewal rates, which is a good indicator of our product’s effectiveness,” the spokesperson added.
Cuemath recently changed its management structure after the last round of layoffs. While the previous CEO, Vivek Sundar, kept his position as the company’s co-founder, the company hired Manan Khurma to take over the role of chief executive.
The edtech company planned to raise $100 million but only raised $57 million in June 2022 with a $400 million valuation. The company helps students prepare for school and competitive exams by providing one-on-one Maths classes for the K–12 segment.
According to the spokesperson, the company is aware that the unfavourable macro-environment for startups, particularly in the edtech sector, will persist for an uncertain time. As a result, the company has revised its business priorities and is pursuing a more sustainable growth strategy.
Cuemath saw a 63.1% rise in revenue for the fiscal year ending March 2022, going from Rs 90.77 crore to Rs 148.05 crore. However, its losses increased by 66% to Rs 216.6 crore during that time. The business has not yet submitted its audited financial statements for FY23.
