Ronnie Screwvala-backed edtech startup Lido Learning has filed for insolvency and bankruptcy with the Mumbai bench of National Company Law Tribunal due to a cash crunch, Entrackr reported.
This announcement comes after Lido Learning laid off 1,200 employees in January this year.
Lido Learning’s board of directors passed a special resolution to file an application under Section 10 of Insolvency and Bankruptcy (IBC) code 2016, according to the company’s regulatory filings with the Ministry of Corporate Affairs (MCA).
The report further added that Lido failed to pay off its debts to its ex-employees, customers, vendors, lenders, and sundry creditors. Anil Drolia has been proposed as the Interim Corporate Resolution Professional.
Lido Learning team
Earlier, it was reported that Lido Learning was in the advanced stages of talks with Reliance Industries for investment. However, the size of the investment wasn’t disclosed.
Founded in April 2019, Lido Learning used to offer live tutoring and personalised online coaching sessions to students from classes 5-9 in maths and sciences from both CBSE and ICSE boards.
This is the second company to file an application for insolvency and bankruptcy in the past few weeks. Last month, Nandan Nilekani-backed ShopX also filed applications for the same.
Lido is yet to file financials for FY22, however, during FY21, the edtech company witnessed a significant 3X growth in revenue to Rs 10.9 crore from Rs 3.62 crore in FY20, as per its annual financial statements with RoC. Annual losses of the company also surged 35% to Rs 58.75 crore in FY21, which stood at Rs 43.52 crore in the fiscal year ending March 2020.