Ronnie Screwvala-backed edtech start-up Lido Learning has filed for insolvency and bankruptcy with the National Company Law Tribunal in Mumbai. In February this year, the company shut its operations and sacked as many as 1,200 employees amidst a funding crunch. 

According to the filings with the Ministry of Corporate Affairs (MCA), the board of directors of Lido Learning passed a special resolution to file an application under Section 10 of the Insolvency and Bankruptcy (IBC) code 2016. “Resolved that pursuant to Section 10 of the Insolvency and Bankruptcy Code, 2016, considering the facts that the company is unable to pay its debts which are due and there are defaults made by the company, the consent of the shareholders be and is hereby accorded to file an application/petition i.e. initiation of Corporate Insolvency Resolution Process by the corporate applicant be filed before the National Law Tribunal,” the company said in MCA filing. 

According to multiple reports, the cash-strapped start-up also defaulted on the payment of the former employees. The development comes at a time when Indian edtech start-ups are witnessing massive layoffs and pay cuts amidst a funding crunch.

Founded in 2019 by Sahil Sheth, the company offers live online classes to children from KG to Class 9 for Maths, Science, English, and Coding. Sheth is the former president of edtech unicorn Byju’s. Lido, which has been competing with other edtech players such as upGrad, Byju’s Unacademy and Vedantu is also backed by other marquee investors such as Vijay Shekhar Sharma (Paytm’s CEO), and  Anupam Mittal (founder of Shaadi.com).