FrontRow – Lightspeed-backed Edtech Acquisition Lays Off 90% of Employees
FrontRow, the Bengaluru-based edtech start-up backed by Lightspeed, has recently laid off 90% of its workforce. The move comes as a surprise to many, considering that the company had previously raised $17 million in Series A funding and was on a trajectory of growth.
Founded in 2019, FrontRow is an edtech platform that provides live online classes for students in India. The company’s main focus is on offering classes for students preparing for competitive exams such as NEET, JEE, and UPSC. The platform has gained traction in the Indian edtech market due to its interactive and engaging live classes that are conducted by top teachers in the country.
FrontRow’s investors include Lightspeed, Elevation Capital, and Rocketship.vc. The company has received $17 million in Series A funding, which was its first institutional funding round. With this funding, FrontRow had planned to expand its operations and grow the team.
However, the recent layoff indicates a change in the company’s plans. According to a report by Inc42, FrontRow has cited economic disruption caused by the Covid-19 pandemic as the reason behind the layoffs. The company claims that the pandemic has adversely affected its revenue and growth prospects, and that the layoffs were necessary to sustain its operations.
The layoff has reportedly affected around 90% of the company’s employees, which amounts to more than 100 people. The move has sparked concerns about the company’s future and its ability to bounce back from this setback.
When asked for a statement about the layoff, a FrontRow spokesperson said, “We deeply regret having to let go of our valued team members. This was not an easy decision, but a necessary one in light of the current economic situation. We remain committed to our core mission of making quality education accessible to all students in India.”
The move by FrontRow is a reflection of the challenging times faced by start-ups and businesses worldwide due to the Covid-19 pandemic. The edtech sector, which has seen massive growth in recent years, has also been affected by the pandemic. The layoff by FrontRow serves as a reminder that even well-funded companies are not immune to the economic disruption caused by the pandemic.
In conclusion, the layoff by FrontRow has come as a shock to many in the edtech community. The company had previously raised a significant amount of funding and was on a growth trajectory. However, the economic disruption caused by the Covid-19 pandemic has forced the company to make tough decisions. While the future of FrontRow remains uncertain, its commitment to providing quality education to students in India remains unchanged.