New Delhi- Lido Learning, an electronic technology startup backed by Ronnie Scrovala, has filed for bankruptcy and bankruptcy before the National Companies Law Court in Mumbai, six months after more than 1,200 employees demanded the resignations due to a liquidity crunch.
According to the company’s regulatory filings with the Department of Corporate Affairs, the Board of Directors of Lido Learning has issued a special resolution to file an application under Section 10 of the Insolvency and Bankruptcy Act of 2016. (MCA).
Lido failed to pay the debts and defaulted on payments to former employees. Temporary corporate decision professional Anil Drolia has been suggested. Entrackr was the first to report the news.
Employees received a full and final settlement letter (F&F) from Lido and verbal assurances from HR that their salaries would be paid by the end of June. However, the majority of the employees did not receive even a single rupee.
Lido, which was founded in 2019 by former Byju vice president Sohail Sheth, asked more than 1,200 employees to resign during a video conference at City Hall in the first week of February, citing a lack of funding.
Sheth also stated that all employees would be paid within three months and that the company was looking to sell assets in order to fund employee salaries.
Lido Learning’s bankruptcy filing comes at a time when start-ups in India are increasingly showing signs of distress, with funding for the ecosystem slowing. ShopX, backed by Nandan Nilekani, also declared bankruptcy recently.