Chennai-based edtech startup Skill-Lync has recently announced that it will be laying off some of its employees due to a shift in its business strategy. The company, which offers engineering courses to students and working professionals, has been impacted by the pandemic-induced economic slowdown and has decided to cut down its workforce to reduce costs.
Skill-Lync was founded in 2017 by Sarangarajan V and Suryanarayanan P, with a vision to provide hands-on learning experiences to students and professionals in the field of engineering. The startup offers online courses in mechanical, electrical, civil and other engineering disciplines, as well as personalized coaching and industry projects to help students gain practical skills.
Skill-Lync has seen significant growth in the past few years, with a user base of over 50,000 students from over 100 countries. The startup has also raised $2 million in funding from investors such as Y Combinator, Better Capital, and Hyperplane Venture Capital.
However, the COVID-19 pandemic has affected the edtech industry, with many companies facing challenges in terms of revenue growth and funding. In this context, Skill-Lync has decided to restructure its operations and focus on a few key areas to sustain its business in the long run.
In a statement to the media, Skill-Lync co-founder Sarangarajan V said, “We have decided to lay off some of our employees as part of our efforts to streamline our operations and optimize our resources. This was a difficult decision, but we believe it is necessary to ensure the long-term viability of our business.”
The company did not disclose the exact number of employees who have been affected by the layoffs, but sources suggest that it could be around 10-15% of its workforce. Skill-Lync has assured that it will provide necessary support to the impacted employees, including severance pay and job placement assistance.
The news of the layoffs has come as a shock to many in the edtech community, as Skill-Lync was seen as a promising startup in the field. Some experts have raised concerns about the impact of the pandemic on the Indian edtech industry and the need for startups to adapt to the changing market conditions.
“The pandemic has accelerated the shift towards online education, but it has also created challenges for edtech startups in terms of funding and revenue growth. Startups need to be agile and innovative in their approach to survive in this environment,” said Arvind Singhal, chairman of consulting firm Technopak.
Despite the challenges, Skill-Lync remains optimistic about its future prospects. The company has said that it will continue to focus on providing high-quality engineering education to its students, while also exploring new business opportunities in the edtech space.
“We remain committed to our vision of democratizing engineering education and providing access to quality learning resources to students around the world. We believe that our restructuring efforts will help us achieve this goal in a sustainable manner,” said Suryanarayanan P, co-founder of Skill-Lync.
The edtech industry in India has seen a significant growth in recent years, with the COVID-19 pandemic driving demand for online learning. According to a report by consulting firm RedSeer, the Indian online education market is expected to reach $2 billion by 2021, with a compound annual growth rate (CAGR) of 39%.
However, the pandemic has also created challenges for the industry, with many startups facing financial difficulties and increased competition. As a result, companies like Skill-Lync are having to make tough decisions to ensure their survival in the long run.
In conclusion, Skill-Lync’s decision to lay off some of its employees is a sign of the challenges faced by the edtech industry in India.
