Behind Zenius’ decision to let go of 200 employees

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Hi there,

Every now and then, I get a reminder of how the whole startup game is such a tightrope balancing act. Today’s premium article is about Indonesia’s Zenius, which has raised a total of US$40 million in disclosed funding, with its most recent round in March. The edtech startup is laying off over 200 of its employees due to “macroeconomic conditions.”

Global markets are indeed entering uncertain times, but when a rising star like Zenius moves swiftly to slash jobs, it emphasizes the stark realities of startup life. At least it looks like the company is doing right by its laid-off staff.

Today we look at:

• Job cuts at Zenius as it works to ensure business sustainability
• The US$10 million series A round of a Singaporean streetwear marketplace
• Other newsy highlights such as LinkAja’s own layoffs conundrum and the departure of two senior execs from Grab’s fintech arm

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Premium summary

Are there bigger questions for edtech to answer?

Apparently Zenius isn’t the only edtech company looking to make cuts: Indian counterparts Unacademy and Vedantu are laying off 1,600 employees between them. Like Zenius, Unacademy – which raised US$440 million in August 2021 – is citing macroeconomic reasons, including an impending slowdown in venture funding, for the layoffs.

With the pandemic fast becoming a thing of the past, what lies in edtech’s future?

For now, let’s take a closer look at what’s going on with Zenius.

• Continuing support: Staff who were let go will be eligible for severance pay as set out by Indonesian law, a Zenius spokesperson says. The firm will also continue the health insurance benefits and wellness counseling for affected workers until September 30, 2022.

• Helping with the next step: The company is also helping these employees find new opportunities. One staffer says that the startup may also help them find tutoring positions in Primagama, the offline tutoring giant that Zenius acquired in February.

• Always in the pipeline? A source says there were signs that the layoffs were coming. In February, the firm introduced a new performance review process for tutors that reduced the number of those who could convert to full-time employee status.

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US$10 million to be the hypest beast around

Novelship, a Singapore-based marketplace for sneakers and streetwear, has raised US$10 million in a series A round co-led by GSR Ventures and East Ventures, with participation from K3 Ventures and iGlobe Partners.

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