Edtech startup NativeX halts operations due to cash crunch

NativeX, a Vietnam-based edtech startup offering online English classes for professionals, confirmed to Tech in Asia that it had suspended operations last month due to cash flow challenges.

Founded in 2023, NativeX provided English classes through a proprietary platform that allowed students to book sessions on demand based on their proficiency levels. The company recruited language tutors – mostly of Western descent – on a contractual basis, according to former teachers interviewed by Tech in Asia.

The startup raised US$2.5 million in 2024 via a seed round led by Ansible Ventures and Blueprint Ventures, bringing its total funding to US$4 million.

File photo: NativeX team, February 2024

At the time, NativeX said most of its students were working professionals in healthcare, marketing and IT, who paid an average of 15 million Vietnamese dong (US$608) in course fees.

Tech in Asia reached out to both venture firms for comment but did not receive a response by press time.

In a statement to Tech in Asia, NativeX said it faced cash flow pressure “amid rapidly changing market conditions,” citing weaker consumer demand for educational services and rising operating costs.

The company said its flexible class model required sessions to run across multiple time slots and sufficient operational capacity to ensure smooth booking and continuity for students.

In addition, one of its seed investors did not continue supporting the business, NativeX said. The board sought alternative funding sources but was unable to resolve the cash flow issue.

The startup is seeking an “alternative partner” that could allow it to resume operations around March 2026. However, it did not specify whether this move would involve raising a new funding round or finding a potential buyer.

Former NativeX students and teachers have taken to Facebook to complain about unrefunded tuition fees and delayed salary payments. Teachers interviewed by Tech in Asia said salary delays began in December 2024 and became more frequent by mid-2025.

Alina, who asked that her last name be withheld, taught on NativeX from 2023, working about 30 to 40 hours a month and earning between US$300 and US$400 monthly. She said the company still owes her about two months’ salary.

An ex-employee who left the startup in mid-2025 said he is still owed about two and a half months’ salary, adding that around 50 staff and teachers are in a similar situation.

NativeX acknowledged that it has “outstanding obligations” to teachers and some staff, but stressed that it continued making payments until October 2025. The company, however, did not say when it expects to settle the remaining unpaid salaries.