Edtech start-up Lido Learning has filed for insolvency and bankruptcy with the National Company Law Tribunal. Its board of directors has also cleared a special resolution to file an application regarding this, according to a report by livemint. It comes at least seven months after the company told about 1,200 employees to resign.
“Resolved that pursuant to Section 10 of the Insolvency & 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 Company Law Tribunal, Mumbai Bench so as to resolve its debts,” according to the livemint report quoting regulatory filings with the Ministry of Corporate Affairs (MCA).
The company has filed the application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, with the NCLT’s Mumbai bench, the report said.
“I haven’t received my two months’ salary and incentives amounting to about Rs 86,000 despite the company making multiple commitments to pay in the coming months. I even received my full and final settlement calculations from the human resource department, but the money hasn’t been credited yet,” the report said, quoting Abhinav Kumar, who worked as a senior business development associate at Lido, as saying to VCCircle.
New-generation enterprises in India, including Vedantu, Unacademy and Cars24, have let go of over 6,000 employees this year. Ola has laid off about 2,100 employees during January-March this year, followed by Unacademy (over 600), Cars24 (600) and Vedantu (400). This apart, e-commerce firm Meesho has laid off 150 employees, furniture rental start-up Furlenco 200, influencer-led social commerce start-up Trell 300 employees and OkCredit has let go of 40 employees.
Last month, Commerce & Industry Minister Piyush Goyal said about 75,000 startups have been recognised in India and the startup ecosystem here continues to be fuelled by innovation, enthusiasm and entrepreneurial spirit. He added that India in its 75th year of independence is now home to 75,000 startups.
“These numbers tell the power of a vision. A vision to see innovation & enterprise drive growth. India is now home to 75,000 startups in the 75th year of Independence and this is only the beginning,” Goyal said in a tweet last month.
While the initial 10,000 startups were recognised in 808 days, the latest 10,000 were achieved in only 156 days. With more than 80 Startups getting recognized per day, the highest rate in the world, the future of the startup culture is very promising and encouraging.