About 1,200 employees of Quality Tutorials, which runs the edtech platform Lido, have reportedly been asked to resign amid a fund crunch. Lido Learning founder Sahil Sheth held a town hall meeting earlier this month where he informed the employees that the company has run out of funds and will not be able to pay their salaries, reported Live Mint.

Share Market Live

NSE

According to three employees, Sheth said the company will not be able to continue and would shut down soon. All of its 1,200 employees were asked to resign and the company did not issue termination letters.

Also read: Sacked by BharatPe, Madhuri Jain Grover unleashes Twitter storm against company brass

Ronnie Screwvala, whose Uniledger Ventures recently invested $10 million in Lido Learning, has accused the company of keeping its investors uninformed. Screwvala said he heard the company was considering mergers and acquisitions just three weeks ago.

“Unfortunately, the founders gave very little information about the situation and the reality to all investors. What happened is unacceptable,” said Screwvala in the Mint report. He added that the important thing here is that students and parents will not be harmed as, according to him, there are other K-12 (kindergarten to twelfth grade) edtech startups that are willing to take the students onboard.

Also read: 'This isn’t real': Mortgage company’s CEO fires 900 employees over Zoom call

The employees took to social media to express their concerns. Rishabh Kumar, Assistant Marketing Manager at Lido Learning, posted on LinkedIn, "My 1st worst experience in the edtech industry. The company closed its business suddenly in the morning, 2 days before salary day without giving any notice to anyone. It is no other than LIDO.”

Many entrepreneurs in the edtech ecosystem have come forward to provide their support to the Lido team after the news.

(Edited by : Shoma Bhattacharjee)