Learning platform focused on non-academic skills FrontRow ceased its operations. The shutdown was inevitable as the company struggled to find a product market fit despite receiving substantial funding.
Workforce Reduction and Acquisition Talks
FrontRow had already let go of almost 90% of its employees in two phases during 2022. Recently, it advised the remaining staff to seek employment opportunities elsewhere. The company had also engaged in discussions with larger players in the industry regarding a potential acquisition. Last month, Entrackr reported exclusively on these acquisition talks and the possibility of FrontRow shutting down.
Capital Return and Industry Landscape
Sources have disclosed that FrontRow is returning approximately $2.5 million to its investors, which include Lightspeed, EightRoads, Elevation, and others. The company has raised over $17 million across two funding rounds thus far.
FrontRow founder Inshaan Preet Singh confirmed the developments, stating, “We are still exploring potential acquisitions of the IP/team, etc., but also deciding whether it just makes more sense to return the capital and will decide that with the board in the next couple of months.”
FrontRow joins the ranks of decently funded startups that have either ceased operations or are on the brink of doing so. Recently, healthtech startup Mojocare made headlines as it faces potential shutdown due to a lack of viable exit options for investors. Despite raising nearly $25 million in funding with support from Sequoia and B Capital, the future looks uncertain for Mojocare. Similarly, crypto startup Pillow wound up its operations in India last month, even after raising over $20 million from prominent investors such as Accel, Quona Capital, and Elevation Capital.
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