Edtech start-up Scaler lays off nearly 150 employees

Bengaluru-based edtech start-up Scaler has laid off nearly 150 employees across its marketing and sales functions, according to sources in the know.

The company, which confirmed the development, attributed the job cuts to its need for long-term growth and sustainability. It said that the decision was not performance-driven.

“As part of this restructuring, we identified some functions/roles, primarily in marketing and sales, that we had to part ways with. I want to reiterate that this was not a performance-driven decision and assure all those affected are provided with the necessary support to ensure a smooth transition,” said Abhimanyu Saxena, Co-Founder, Scaler and InterviewBit.

• Also read: How AI and allied trends will transform the EdTech universe in 2024

Acquisition spree

This comes almost a year after the start-up acquired Delhi-based Pepcoding for an undisclosed amount to strengthen its business ecosystem. This is the fourth acquisition by Scaler, following the buyouts of AppliedRoots, Coding Minutes and Coding Elements. The start-up acquired AppliedRoots for a whopping $50 million in 2022.

Founded in 2014 by Anshuman Singh and Saxena, Scaler offers high-quality technical education by tech leaders and subject matter experts.

In 2023, the edtech launched Scaler School of Technology, a four-year residential undergraduate computer science programme designed for the next generation of India’s software professionals.

Till date, the company has raised over $76 million in funding. It had last raised $55 million in a Series B funding round led by Lightrock India, along with Peak XV Partners and Tiger Global, among others. The round valued the start-up at over $700 million.

The start-up’s loss surged 90 per cent year-on-year to ₹330 crore, while the revenue increased to ₹318 crore. In FY23, the start-up’s advertising expenditure increased to ₹143.3 crore. 

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