Biography of Sahil Sheth: Founder and CEO of Lido Learning-EdTech Startup
Rise and then Fall of Lido Learning
Story of Sahil Sheth's Vision
In April 2019, Sahil Sheth launched Lido Learning, an
ed-tech company based in Mumbai, India. Lido aimed to transform education by
offering live online classes for students from Kindergarten through Grade 12.
Sheth was no stranger to the ed-tech scene; his previous venture, Infinite
Student, had made waves by providing curriculum-based video lessons via a
mobile app. This success led to Infinite Student's acquisition by Byju’s, a
major player in the educational technology space.
From Infinite Student to Byju's
Sahil Sheth's journey into ed-tech began with Infinite
Student, a platform that disrupted the traditional textbook market by offering
video lessons through an app. The success of Infinite Student caught the
attention of Byju’s, which acquired the company. At Byju’s, Sheth worked as
Vice President, gaining further insights into the challenges and opportunities
within the e-learning sector. His experience highlighted the need for a more
interactive and community-based learning approach.
Biography of Sahil Sheth: Founder and CEO of Lido Learning-EdTech Startup/Entrepreneur/Success story of Sahil Sheth/Age/Lido learning why fall/Story
A New Approach to Online Learning
Motivated by his experiences, Sheth traveled to China to
explore how online tutoring was evolving there. He observed that Chinese
platforms were not only interactive but also used advanced analytics to track
student performance. This observation inspired Sheth to create Lido Learning, a
platform that combined interactive, online classes with personalized attention.
Lido’s model featured small group sessions with a maximum teacher-to-student
ratio of 1:6, along with additional self-paced content.
Initial Success and Expansion
Lido Learning made a strong start in its first year,
establishing itself in Tier 1 cities. By November 2019, the company had 138
employees and successfully raised $3 million in Series A funding. By mid-2020,
Lido had grown to over 2,000 paying customers and 400 teachers. This growth
spurred Sheth to plan for expansion into Tier 2 and Tier 3 cities, aiming to
broaden Lido’s reach.
Series B Funding and Ambitious Plans
The company’s Series B funding round concluded in March
2020, raising $10.5 million, with significant investment from BAce Capital. By
2021, Sheth was setting his sights on international markets, including the UK,
Australia, New Zealand, and South East Asia. To support this expansion, Lido
secured $10 million in its Series C funding round, led by Ronnie Screwvala’s
Unilazer Ventures.
The Unexpected Shutdown
However, despite the promising growth and ambitious plans,
Lido Learning faced a sudden and unexpected shutdown on February 4, 2022. The
announcement came as a shock to the company’s 150 employees. Sheth’s note
revealed that the company had exhausted its funds and could no longer continue
operations, leading to the abrupt end of Lido Learning’s journey.
The Financial Struggles
Lido Learning’s shutdown was partly due to financial
mismanagement. Despite raising substantial funds across three rounds, the
company struggled to manage its finances effectively. It faced difficulties in
meeting operational payments, including employees’ provident funds and vendor
payments. Reliance on new funding rounds to sustain operations, rather than
addressing existing financial issues, contributed to the company’s downfall.
Failed Funding Deals
Two major funding deals that Lido had hoped would secure its
future fell through. The company was set to receive $100 million from
ByteDance, the parent company of TikTok, but the deal was jeopardized by
India’s ban on Chinese apps. Additionally, a $10 million deal with Mukesh
Bansal of Cure.fit collapsed when Cure.fit faced its own setbacks due to the
pandemic.
Internal Financial Issues
Beyond the failed funding deals, Lido Learning had deeper
financial issues. The company was already operating at a loss and struggled
with overdue payments and refunds. This reliance on external funding to cover operational
costs, combined with the inability to manage existing debts, highlighted
fundamental flaws in financial planning and decision-making.
A High-Profile Failure
Lido Learning’s shutdown serves as a notable example of how
even well-funded and ambitious startups can falter. The company's rapid
expansion and financial missteps overshadowed its initial success. Despite its
innovative approach and substantial investment, the inability to maintain
financial stability ultimately led to its downfall.
Lessons Learned
The rise and fall of Lido Learning provide important lessons
for the ed-tech industry and startups in general. Effective financial
management is crucial, especially when relying on multiple rounds of funding.
Startups must balance growth ambitions with the ability to manage existing
resources and debts to ensure long-term sustainability.
Future Prospects
As the ed-tech landscape continues to evolve, Lido Learning’s
experience will be a reference point for other companies in the sector. The
importance of solid financial planning, adaptability to changing market
conditions, and the need for realistic growth strategies will be crucial for
future ventures.
A Cautionary Tale
Lido Learning’s story is a cautionary tale about the risks
of rapid expansion and financial mismanagement. It underscores the need for
startups to build a strong foundation before scaling and to ensure that
financial decisions are made with a long-term perspective.
The End of a Journey
Lido Learning’s journey from a promising ed-tech startup to
its eventual shutdown highlights the challenges faced by many ventures in the
industry. Despite its innovative approach and initial success, the company’s
inability to navigate financial pressures and secure necessary funding led to
its closure, marking the end of an ambitious attempt to transform education.
Timeline for story
April 2019: Sahil Sheth launched Lido Learning to offer live
online classes for students.
November 2019: Lido Learning raised $3 million in Series A
funding.
March 2020: The company secured $10.5 million in Series B
funding.
Mid-2020: Lido expanded its customer base to over 2,000 paying
customers and 400 teachers.
February 4, 2022: Lido Learning shut down due to financial
mismanagement and failed funding deals.
