Teachmint lets go of 70 employees as demand for edtech slows down
Edtech startup Teachmint, which is backed by Lightspeed Ventures, has announced its second round of layoffs within six months, affecting an additional 70 employees. The decision to cut jobs was made as the company aims to reduce costs, streamline operations, and eliminate redundant roles.
Teachmint CEO and co-founder Mihir Gupta addressed the recent layoffs during a town hall meeting on May 4, stressing that the decision was not related to employee performance but rather to eliminate redundant positions within the company. Although Teachmint has acknowledged the layoffs, it has not publicly disclosed the exact number of employees affected.
Teachmint has announced a comprehensive support package for employees impacted by its recent layoffs. The edtech firm is offering a range of benefits, including three months of payroll support, six months of continued health insurance coverage for individuals and families, and access to mental health counseling services.
The company is also providing outplacement assistance and accelerating the vesting of employee stock option plans (ESOPs) for eligible workers.
Teachmint has now laid off over 110 employees, including the recent 70, since December 2021 when it terminated 45 workers. The company is joining the ranks of other edtech startups such as Unacademy, Vedantu, and Byju's, which have also resorted to multiple rounds of layoffs.
In FY 2021-22, the edtech reported earnings from operations of Rs 80 lakhs, but also incurred a loss of Rs 131.7 crore for the same fiscal year. Teachmint had acquired four businesses - MyClassCampus, Teachmore, Teachee's India team, and Airlearn - in 2021 to diversify and expand its operations.
Founded in 2020 by Mihir Gupta, Payoj Jain, Divyansh Barodia, and Anshuman Kumar, Teachmint is a mobile-first, video-first teaching platform aimed at digitizing classrooms. The startup has raised $118 million in funding from prominent global venture capital firms including Vulcan, Rocketship.VC, Lightspeed Venture Partners, and Better Capital, with a latest valuation of $500 million.
In November 2021, Teachmint introduced a distinct Employee Stock Ownership Plan (ESOP) called the "Continuous Liquidity Plan" to retain talent in a highly competitive startup job market. This plan enables employees to sell their vested stock options at any time, instead of having to wait for customary events like funding rounds, buybacks, or founder decisions.