Context - Morning Context article on Teachmint https://themorningcontext.com/internet/teachmint-is-the-latest-edtech-on-the-verge-of-a-crisis
Some excerpts from the article:
Their core product is not relevant to schools in the post-pandemic world,” says the edtech entrepreneur. “Unless they are able to build additional layers, they will not be able to monetize.” “Burn has been relatively high in the past, however, we have aligned our burn and business structure to be in-line with the current market and macro factors,” said the Teachmint spokesperson. After starting paid subscriptions late in 2021-22, revenue saw “a major ramp” in 2022-23, they said. The company is “working towards breaking even over the next 3 years”.
“The money got to their head. It gave them fake confidence and COVID exacerbated that. They became cocky and arrogant,” says the second former employee. “I remember discussions used to be like how to make a $10 billion company. And we were like, please get the revenue of $1 million. They thought whatever they touch will turn to gold. And this has been the reason for their downfall.”
“It is pretty shocking to see identical Mercedes SUVs in the parking lot. How can you do this after raising just a Series B?” asks a second former employee, also on condition of anonymity. “Especially when you don’t have a product and vision?”
“Both Mihir and Divyansh bought houses worth crores of rupees. All this was done when the company still had no steady revenue,” says a third former employee, requesting not to be identified.
The buyback “is very similar to a founder secondary [just a different structure],” says a VC investor, asking not to be named. “Founder shares are typically locked in. So, if it is a small amount, <Rs 10 crore type in a mature company, yes. Else, likely no.”
Lol, I recently saw Open founders driving Mercedes car, I was like, wtf do they even make a revenue of that car value?
Someone said to me that some founder have property in Adarsh palm 🌴 retreat, 😅 🙈
Open founders and top management purchased all the top brand cars.
With their revenue they MIGHT get hero cycle.
the company itself is a family run business where only people from founders home town are promoted and they also bought new cars 😅
Can someone summarise it please
In 2021-22, the company earned a meagre Rs 77 lakh in revenue from operations. In the year before, the number was zero. Net loss, meanwhile, jumped 26x to Rs 131 crore in 2021-22. It hasn’t, however, stopped the co-founders from making good money.
The earnings report for 2021-22 points to one interesting thing: A share buyback by the company. On 21 August 2021, Teachmint bought back shares from the four co-founders for a total consideration of Rs 59 crore. This was right after the company raised $20 million in a pre-Series B round led by Learn Capital.
“It is pretty shocking to see identical Mercedes SUVs in the parking lot. How can you do this after raising just a Series B?” asks a second former employee, also on condition of anonymity. “Especially when you don’t have a product and vision?”
Forbes 30 Under 30 Scammers strike again!
man their product was dogshit tbh, this one instance I was able to bypass the time locked assignments just by changing my phone date and time..
Learn capital just got an expensive lesson
Selling courses in India? Good luck
Had worked with one of the co-founders in the past. He couldn't execute to save his life. Never was sure of TeachMint due to this. Still, wish them luck and humility.
Well deserved to people who believe in blind hype.
Pure scammers. They knew that the startup was going to not work so they scammed 60 crore rupees from the investors, distributed it among themselves and then they couldn't care less about what anyone would say.
I have seen a lot of these so called competitors programmers saying we are an entrepreneur and have started a company which only sells courses for DSA and they earn too big from it. Are students now a days so blind that even pay money fo...
IITians always have a headstart in most of the things , be it interviews , be it asking for funds from VCs , be it meeting with board of any company to present their ideas and much more . I wanted to ask one thing that if you are even a ...
Btech students at IIT call mtech as Matka. Means u can't get through IIT so gate. In long term it depends o...
seems a well executed ponzi or pump and dump scheme given how things have panned out over last 3 years
