Byju cuts over 600 jobs and delays payments for billion dollar acquisition – TechCrunch

Byju’s, India’s most valuable start-up, has cut more than 600 jobs in recent days and pushed back payments for a billion-dollar acquisition announced last year.

The Bengaluru-based startup, valued at around $22 billion, cut more than 300 jobs at Toppr, an e-learning startup it acquired last year for $150 million, and another 300 jobs at WhiteHat Jr, a kid-focused coding platform it acquired two years ago for $300 million.

The development follows Byju extending the deadline to make part of the payments for a roughly $1 billion acquisition of Aakash, a 34-year-old fitness center chain, announced more than a year ago. year, according to a person familiar with the matter. The Morning Context first reported the late payment.

In a statement, a spokesperson for Byju said the startup was on track to make payments by the “agreed” date in August.

“Along with all of our group companies, we continue to be uniquely positioned to provide access to quality education across all learning segments, from early learning to exam preparation and career success,” added the spokesperson.

For Toppr’s dismissal, the edtech giant confirmed the development, adding that it had “completed the integration of Toppr and absorbed nearly 80% of its talented workforce into the Byju ecosystem” .

“As the next step, we are optimizing teams to recalibrate business priorities and accelerate our long-term growth,” the spokesperson added.

The company also confirmed the firing of WhiteHat Jr, but declined to reveal how many employees were affected at either startup it acquired. Entrackr first reported the layoff at Toppr.

Byju’s, which has spent $2.5 billion acquiring a dozen startups over the past year and a half, declined to say whether more layoffs are underway or planned for the immediate future.

Wednesday’s development marks the latest in a growing string of layoffs among Indian startups.

BlinkIt, formerly known as Grofers, struggling online grocer, e-learning platforms Unacademy, Eruditus, and Vedantu, car marketplace Cars24, e-commerce marketplace Udaan, fintech Rupeek, social commerce Meesho and online pharmacy PharmEasy are among the startups that have laid off employees in recent weeks.

Around 11,000 employees in India have lost their jobs this year due to the market correction (or so has been the most popular excuse), according to estimates.
Investors in India, as elsewhere, have slowed the pace of their investments dramatically as tech stocks tumble to levels not seen in recent years.

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