Noida-based Qin1, which offered online classes on coding and English language, shut its operations as it was unable to secure a new round of funding
Qin1 cofounder Aarti Gupta cited funding issues and “unfeasible acquisition opportunities” as the reason for shutting the startup
As per Inc42’s layoff tracker, Indian startups have laid off over 15.5K employees in 2022
Qin1 has become the latest edtech startup to become the victim of the ongoing funding winter as the Noida-based platform has shut its operations amid a funding crunch.
The startup, which was offering live online classes on coding and English language for students aged 6-18, was unable to secure a new round of funding which led the founders to shut operations a couple of months ago, sources told Inc42.
Qin1 cofounder Aarti Gupta confirmed the development with Inc42. She cited funding issues and “unfeasible acquisition opportunities” as the reason for shutting the startup.
As per the website of Employees’ Provident Fund Organisation (EPFO), the startup last contributed PF for its employees in the month of March this year.
Founded in 2019 by Ishaan Gupta and Aarti Gupta, Qin1 offered programs such as Code Q, Lingo Q, and Lingo Q Study Study. Apart from this, it also offered classes on coding games, stories and animation, fundamentals of computers, application development, Python with AI, fundamentals of cybersecurity, and hacking.
As per its Linkedin profile, the startup had around 350 employees, including both part-time and full-time employees, till February this year. Its headcount dropped drastically over the next few months.
However, Gupta said that all the employees were placed in other companies in time to ensure there was no adverse impact on their careers.
Qin1 had raised an undisclosed amount in its pre-Series A round from Venture Catalysts in January last year. The round also saw participation from LetsVenture and JCurve Investment, among others. Ankit Bhati of Ola and Sundeep Sahini of Rocket Internet were also investors in the startup.
During its pre-Series A round announcement, the startup claimed that it was present in 50 cities across India and had more than 30,000 learners.
Edtech Sector Feeling The Heat
The edtech sector, which was investors’ darling during the pandemic years, has been making the headlines for all the wrong reasons since the start of 2022. The funding winter has hit the sector hard, with startups struggling to raise fresh funds. This has led to edtech startups taking various cost-cutting measures, including layoffs.
Earlier this week, edtech giant BYJU’S laid off 2,500 employees to attain profitability by the end of the ongoing fiscal year, while In42 reported that celebrity-focused FrontRow recently laid off around 125-130 employees. In total, Indian edtech startups have laid off over 7,000 employees in 2022 so far, more than any other sector.
Besides, the funding crunch also forced four startups to shut operations earlier this year – Lido, Crejo. Fun, Udaay, and SuperLearn. Qin1 has become the fifth entrant on the list.