Edtech startup Lido has filed applications for insolvency and bankruptcy. The development comes six months after reports of the company shutting down due to cash crunch.
The board at Lido has passed a special resolution to file an application under section 10 of Insolvency and Bankruptcy (IBC) code, 2016, according to the company’s filings with the Registrar of Companies (ROC).
It further added that Lido failed to pay off its debts payable to its ex-employees, customers, vendors, lenders and sundry creditors. Mr Anil Drolia has been proposed as the Interim Corporate Resolution Professional.
As per several media reports, Lido has been looking for acquisition while The Morning Context reported that it was in the advanced stages of talks with Reliance Industries for investment. The size of the investment wasn’t disclosed.
Lido used to offer live online tuition classes to students between classes KG to Class 9 in Math, Science, English, and coding from CBSE and ICSE boards. In September 2021, it raised $10 million in a round led by Ronnie Screwvala’s Unilazer Ventures. The startup had also announced its entry into the U.S. and Canada during the same month and was planning to expand into India and overseas with the new funds.
Like Lido, a clutch of edtech startups such as Udayy, SuperLearn and Crejo.Fun also shut their operations due to similar issues.
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. The Bengaluru-based startup also shut its operations. Entrackr exclusively reported the development.
Lido is yet to file financials for FY22, 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.