Skill Lync, a Chennai-based ed-tech company, has recently laid off more than 200 employees as a part of its restructuring process. This decision has come as a shock to many in the industry, as Skill Lync was touted as one of the most promising start-ups in the education sector. The company, which specializes in providing online courses in engineering and data science, had raised $17mn in Series A funding earlier this year. However, despite this funding, the company has been struggling to keep up with the competition in the market.
Skill Lync was founded in 2017 by Suryanarayanan P, Sarangarajan V, and Sakthivel S. The three co-founders, all engineering graduates, had a vision of providing high-quality education to students who were unable to attend traditional classrooms. They saw the potential of using technology to bridge the gap between education and employment, and thus, Skill Lync was born.
The company started off with a small team of ten employees and gradually grew to become a workforce of over 400. With offices in Chennai and Bengaluru, Skill Lync had set its sights on expanding to other cities in India and even globally. The company had also secured partnerships with several top engineering colleges in the country, allowing them to offer certification courses in collaboration with these institutions.
Funding and Investors
Skill Lync had received funding from several investors, including Y Combinator, First Round Capital, and Accel. The company had also attracted the attention of some big names in the industry, such as Mark Zuckerberg and Elon Musk. With all this support, Skill Lync was well-positioned to be a major disruptor in the education sector.
Reasons for Layoffs
However, things took a turn for the worse when the company began to face stiff competition from other ed-tech start-ups. With the pandemic forcing students and professionals to switch to online learning, the market became crowded with similar services. Skill Lync struggled to keep up with the pace of innovation and customer demands, leading to a decline in revenue and growth.
As a result, the company had to resort to lay off over 200 employees in its Chennai office. The decision was made after a thorough analysis of the company’s financials and operations, and the management concluded that this was the best course of action to ensure long-term sustainability. The laid-off employees were offered fair severance packages and assistance in finding new jobs.
Statement from The Company
In a statement issued by the company, the management team conveyed their regret at having to take this step and expressed gratitude towards the team members who had to be let go. They also emphasized the need for Skill Lync to stay agile and adapt to the changing market dynamics to stay competitive. “We remain committed to our mission of providing quality education to our students and will continue to work towards achieving this goal,” the statement read.
The layoff at Skill Lync serves as a reminder of the challenges faced by start-ups in the ever-evolving technology market. The ed-tech sector, in particular, has seen a surge in demand but also an increase in competition. Companies must be prepared to adapt to changing circumstances and be proactive in their approach to stay ahead of the curve. As the industry continues to evolve, it remains to be seen how Skill Lync and other ed-tech companies will navigate these challenges.