‘Practically’, a startup currently restructuring its business model to B2B has reportedly conducted layoffs. About 190 employees were let go since August this year citing monetary limitations. The layoffs come after the startup went through an unsuccessful round of fundraising further compounding the salary situation.
A Hyderabad based startup, that was founded in 2014 by Noheria, Subbarao Siddabattula and Ilangovel Thulasimani. A K-12 STEM edtech startup offering an improvised way of learning with immersive videos, interactive courses, and 3D simulations. COO and Co-founder Charu Noheria said, “the headcount has been gradually reduced by 190 employees since August 2022. We had to let people go in order to stabilize the company”. Practically had signed a term sheet for $5 Million in May, although the investors couldn’t wire in the money due to ‘macroeconomic conditions. “This led to a severe cash shortage for the growing operations forcing us to rethink the business verticals and impacting the cash-burning operations like B2C sales and related verticals,” Noheria said.
The startup is now being stabilized with the help of current investors who are helping Practically with ‘bridge funding’, which will start showing in their banks by the month of November. “Practically is fully committed to fulfilling its obligations to all stakeholders, especially to its current and past employees,” said Charu Noheria, COO and Co-founder-Practically.
After keeping all aspects in mind, Practically will be focusing on their new business model- India B2B, international market, and partnering with certain other entities to rebuild the company which will also impact the team. Practically also announced that after the bridge funding and competition of signing multiyear large B2B projects, they will be able to pay salaries to the employees.
Certain other major entities in the edtech sector which include BYJU’S, UnAcademy, and Vedantu have laid off many employees.