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Edtech platform Doubtnuthas reportedly reduced its workforce by more than 30% amid potential acquisition talks over the last year.

The Gurugram-based startup has found it hard to raise fresh funding and has explored acquisition deals with various companies, an Entrackr report said. High burn and low revenue were the reasons for potential acquirers’ lack of interest in the edtech platform, the report added.

YourStory has reached out to Doubtnut for a comment. This story will be updated with the company’s response.

Doubtnut slashed its monthly burn by more than 80% to Rs 2.2 crore in March 2023 from Rs 10.6 crore in the previous year, the report noted. It posted a revenue of Rs 26.6 crore in FY23, up 44% compared to the preceding year, it added.

In FY22, the edtech firm’s revenue was Rs 15.2 crore, and its losses mounted to Rs 179.2 crore, according to the company’s annual financial statements with the Registrar of Companies. In FY22, its total expenses added up to Rs 194.4 crore, including Rs 72.4 crore in employee benefits, which comes to Rs 6 crore per month. 

The report stated that the company’s monthly burn on employee benefits has reduced by more than 80% to about Rs 1 crore. The firm had closed its banking, SSC, and other public commission prep verticals in the past six-eight months, it added.

Doubtnut has raised a total funding of $49.9 million over six rounds, including $30.8 million in a Series B round in January 2021 from SIG Venture Capital, Sequoia Capital, and others, according to Tracxn.

The edtech platform has raised $2.5 million (Rs 20 crore) through convertible notes in a funding round from existing investors, including Sequoia, Omidyar, and Waterbridge, the Entrackr report noted, adding that Doubtnut plans to raise another couple of million in the same round.

Founded in 2016 by IIT Delhi alumni Tanushree Nagori and Aditya Shankar, Doubtnut offers instant video solutions to the questions submitted by the students.

The edtech sector has been in turmoil after a period of intensive pandemic-driven boom. The pandemic offered tailwinds for tremendous growth, but the resumption of offline classes and a funding winter have hit edtech firms hard.