BlueLearn, formed by BITS Pilani grads, is closing its doors after earning $4 million from angel investors and various investors such as 100X, Titan Capital, Elevation, and Lightspeed. The business will return 70% of the capital to investors, according to co-founder Harish Uthayakumar, who disclosed the “hard” decision in a LinkedIn post.
Looking back on the early voyage, Uthayakumar said that he and co-founder Shreyans Sancheti formed BlueLearn as a Telegram group during their third year of college. Later, the group grew to over 250,000 members, which he claims is the largest student community in India.
Why BlueLearn Could Not Stand Out
There are several well-established competitors in the Indian edtech market, which makes it difficult for newcomers like BlueLearn to stand out and draw in a sizable user base. Additionally, it could have been challenging for BlueLearn to obtain additional money due to changing investor objectives within the industry. Although an official confirmation has not been given, the company may be going through a temporary rebranding or strategic shift, leading to the closure.
“Our mission was to create an online university that levelled the playing field and allowed students studying in tier-2 and tier-3 colleges to access opportunities to learn, network, earn, and get exposure similar to students at BITS or IIT,” Uthayakumar stated. Thousands of students have benefited from BlueLearn’s assistance in finding internships and jobs, launching their businesses, finding other founders, and making online friends. BlueLearn secured $450,000 in funding for its initial fundraising round in August 2021 from investors, including Lightspeed Venture Partners, a US-based firm, and involvement from 100X.VC, Titan Capital, and 2am VC. In February 2023, Elevation Capital and Lightspeed led a $3.5 million early fundraising round for the firm.
Effect of shutdown
There may be several repercussions from BlueLearn’s shutdown. Users and students who depend on the platform for networking and skill development will have to find other options, which could impede their academic progress. This shutdown may cause investors and entrepreneurs in the edtech sector to reevaluate their plans as they consider the sustainability and feasibility of some edtech businesses in India’s cutthroat market. Investors that backed BlueLearn may suffer financial losses and may decide to participate in fewer such projects in the future, which could impact the sector’s general investment environment.
BlueLearn’s closing has yet to be officially explained. This gives rise to ideas regarding the fundamental causes of the shutdown. There is concern regarding the impact on creditors and employees due to the lack of information regarding possible layoffs and the company’s financial obligations. Stakeholders are left wondering about the company’s assets and any plans for restructuring without clear communication from BlueLearn.