It is disheartening to know that Exampur is facing a financial crisis and they are not able to pay the salaries to their employees. Moreover, they are also delaying the full and final settlements for the former employees which is really upsetting. This crisis shows that UpGrad didn’t think through the consequences of canceling their acquisition plans and the impact it would cause on Exampur. It leaves Exampur in an uncertain future where they are facing financial difficulties.
In 2018, Exampur was founded by students Vardaan Gandhi and Vivek Kumar, who wanted to make studying for government jobs more accessible. Today, they offer more than 200 courses on their 24 YouTube channels. But, the company had to make a huge reduction in its employee count resulting in only nine channels.
The buyout could have brought a lot of growth for the Exampur, but it eventually failed because the strategies of both sides were not in sync and the valuation of the acquisition did not match the expectations. Due to this problem, Exampur had to face a tough decision and shut down 15 channels as they were losing money, which was compulsory as they were running out of funds.
The company is now facing issues with its financial structure due to the failed acquisition. It has become difficult for the company to fulfill its payroll obligations as a result. Many of the workers aren’t getting paid since July which makes them really worried about their job and also their financial stability.
On the other hand, Exampur has not fulfilled its responsibility towards former employees who left earlier this year, as their full and final settlements are still pending. The financial slip up is making employees more unhappy and it puts the company’s code of conduct into question.
The founder of Exampur, Vardaan Gandhi, has stated that the company is making an effort to resolve the problem. It’s good news for all the employees of Exampur as Gandhi announced that they will be settling all the pending salaries and full and final settlements in the next four months. The first tranche of payment is expected to be made by January 31, which is a great relief for all the employees.
The pending salary payments and outstanding bills causes financial instability and uncertainty among the current and past employees of Exampur, which is exacerbated by the challenges facing the edtech sector. This year has seen a huge drop in the funding of edtech companies in India. Such a sharp decline has threatened the existence of many startups, including Exampur.
Unfortunately, Exampur is a clear indication that edtech startups are at risk in the current unstable market condition. Companies that are revolutionizing education and skill development are facing various financial challenges such as failed acquisitions, misaligned strategies.
The edtech industry is facing challenges, and as Exampur is navigating through these turbulent waters, the industry as a whole must work together to ensure the sustainability and well-being of its workforce, else it will face serious problems in the future. The coming few months will be crucial for Exampur, as it will have to undertake a lot of activities to regain the trust of its employees.
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