Why Start-ups Failed: The reasons for Lido’s shutdown

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Mr. Sahil Sheth (Founder of Lido Learning)

Why Start-ups Failed: The reasons for Lido’s shutdown

I was an employee of Lido Learning sometime before, so it’s my right to know my company well, so, Let’s go!

Mr. Sahil Sheth started Lido in 2019

Lido USPs – 

  • Online tutoring to the K-12 segment. 
  • Subject experts in Maths, Science, Coding, and English. 
  • The curriculum has been designed by experts from Stanford, Harvard, and IITians. 
  • 6 students, personalized batch group
  • They use a combination of AI, an immersive curriculum, and gamification
  • Hardworking Team 

Price –

In-between between INR 30K and INR 120K.

Lido Funding Rounds :

Jan  2021Series C$11.5M
Dec 2020Series C$1.3M
Oct  2020Series B$4.09M
Nov 2019Series B$7.49M
May 2019Series A$3M
(According to Tracxn Report)

Company Valuation: 

Company Valuation around $35 million as of October 2020. (According to Fintrackr’s estimates)


  • Troubles started during the pandemic when the company’s revenue went down two-folds. 
  • Chinese investors of Lido also did not finalize because India changed its FDI rules in 2021.
  • According to several employees, the start-up is facing financial difficulties and will be unable to pay the salaries of employees
  • The company has also laid off over 150-200 employees.
  • A statement of Supreme Court lawyer Nitish Banka highlighted that besides the employees, even the teachers’ salaries have not been paid out either.
  • Lido was allegedly deducting PF (Provident Fund) amounts from employees’ salaries but hasn’t been depositing the same into the employees’ PF accounts.
  • Another employee claimed that Mr. Sahil had mentioned that one of the investors had backed out after committing an investment. 
  • Social media platforms are piling up with grievances of Lido customers seeking refunds. According to its website.
Lido Learning Funding
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  • The start-up’s expenses in FY21 almost shot by 1.4X, mostly due to the significant rise in employee expenses. It had spent INR 70 Cr, a 47.9% increase from INR 47.3 Cr it incurred in FY20.
  • If we look at overall numbers, over the two years (FY20 & FY21), the company recorded losses of nearly INR 102 Cr, and the total funding raised during that time stood at around INR 111 Cr. ($14.8 Mn). 
  • While the $10 Mn funding that it raised in FY22 helped it stay afloat for some time.
  • However, a lack of investor’s interest in the venture and an inability to secure further funding could have made it difficult for the company to sustain itself financially.


  • They are young, vibrant, and aggressive in their business approach. 
  • Spend, spend and spend cannot be the only way forward. over-branding, over-promising, and under-delivering became a major factor of deterioration .
  • We have to look at cash flow, balance sheet, and curb expenditure if we notice fault lines in business operations before planning the growth chart
  • One of the key reasons behind the difficulty in running Lido could be attributed to its business model as well as the rising competition in the Ed Tech sector


  • Customers are the ultimate God of your Business, so Customers Insights is important
  • Respect your Employees
  • Be a Customer Friendly Brand
  • Maintain your Brand Trust

Being an ex-Lido employee, I know the strength of Lido People and I know the management too. This company and team will rise again with a bang!

But some fundamental strategy is always required for any start-up,

We need to Build a Post Mortem Culture For our Start-up: 

“Define – Measure – Analyse – Improve – Control” a quality strategy for a quality start-up

~ Pranshu Shubham

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