Sequoia Capital-backed math learning startup has reduced its workforce, joining several other edtech firms struggling to cope with mounting losses and seeking to reduce their expenses amid a funding winter.
The Bengaluru-based firm’s decision to cut jobs would impact 100 employees across functions, a company spokesperson told YourStory.
Announcing the layoffs in a LinkedIn post, Manan Khurma, Founder and Chairman of Cuemath, said that he would resume the role of Chief Executive Officer (CEO), with present CEO Vivek Sunder transitioning to an advisory role.
“Given the need to deeply focus on building a great learning and consumer experience (LCX), I will get back into the role of running the company day-to-day as CEO,” Khurma shared in the post.
“Our current CEO, Vivek Sunder—a phenomenal hyper-scale business operator—will transition from his full-time role to continue to work with me and the team, in an advisory capacity, on his many areas of expertise—like acquisition funnels and GTM strategies,” he added.
Sunder, the former COO of Swiggy, was appointed as Cuemath CEO in September 2021.
Khurma said the company reduced its workforce to reflect Cuemath’s increased focus on LCX and retention.
“While this will impact some talented people who have contributed a lot to Cuemath, we are committed to supporting our affected colleagues with everything they need to ensure a smooth transition into the next phase of their professional journey,” he added.
These developments come a few weeks after the company reported its FY22 financial numbers. The Sequoia Capital-backed company’s losses widened 66% to Rs 216.6 crore in FY22 from Rs 130.7 crore in FY20-21.
Cuemath spent Rs 125 crore on employee benefits—its largest expense—according to its financial statements.
Founded in 2013, the Bengaluru-based online math learning platform is present in more than 70 countries. The startup aims to expand to over 100 countries by FY23 in North America, APAC, the UK, Europe, the Middle East, Africa, and South America.
The math learning startup has raised a total funding of $126 million over nine rounds, according to Tracxn. In June 2022, it raised $57 million in a round led by Alpha Wave Global at a valuation of $407 million, a more than 2X jump in its valuation.
The edtech sector has been in turmoil after a period of intensive pandemic-driven boom. The COVID-19 pandemic offered tailwinds for tremendous growth. However, with offline classes resuming and an ongoing funding winter, the edtech firms have been hit hard.
