Introduction
Practically, a Hyderabad-based K-12 edtech firm, recently came into the spotlight after laying off a significant number of its employees. This move has certainly raised eyebrows, especially since edtech has been on a roller-coaster ride, with companies garnering significant investments, and students relying on them heavily, due to the pandemic.
Founded in 2014, Practically was conceptualized to bridge the gap between theoretical knowledge and practical learning. With a focus on STEM education, Practically aimed to enhance the overall learning experience for students, by providing them with simulation-based videos, 3D animations, and AR/VR-based content.
Funding and Investors:
Over the years, Practically’s innovative approach to learning caught the attention of investors, resulting in the company raising a total of $14 million in funding. Practically’s investors include Exfinity Ventures, BEENEXT, 3one4 Capital, and CIIE.CO.
Company Performance:
Practically’s unique approach to education earned the company recognition from various quarters. The firm secured several awards, including the Best Edtech Startup Award at the Indian Education Congress 2019.
Practically also entered into a strategic partnership with Pearson India Education Services in August 2020, to provide a holistic learning experience to students. This collaboration aimed to bring together Practically’s expertise in technology with Pearson’s experience in content creation and assessment
Reason for Layoffs:
Despite its impressive run in the edtech sector, Practically, like many other businesses, struggled in the wake of the pandemic. The lockdown brought with it numerous challenges, including a cash crunch and a decrease in demand.
In June 2022, Practically announced that they would be laying off some of their staff members. Many employees also received emails stating that their salaries would be held for an indefinite period. The company cited a funds crunch as the main reason for the layoffs.
Number of Employees Laid Off:
The exact number of employees affected by the layoffs remains unclear. However, reports indicate that Practically has let go of a significant portion of its workforce.
Statement from Company Stakeholders:
In response to the perplexing turn of events, the co-founder and CEO of Practically, Subbarao Siddabattula, issued a statement. He stated that the decision to lay off employees was a difficult one but necessary to ensure the long-term stability of the company.
Siddabattula also shed light on the company’s future plans. He said that Practically would remain focused on its STEM-based content and continue to innovate with a goal of enhancing student learning outcomes.
