Edtech firm Lido's founder Sahil Sheth onto his next act, but the last one is far from over | Company Business News

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Lido Learning's Collapse and Unpaid Dues

Lido Learning, an edtech company founded in 2019, filed for insolvency in September 2022, leaving approximately 1200 employees unpaid. These employees are owed amounts ranging from ₹20,000 to ₹80,000, totaling potentially up to ₹5 crore. Former employees Himani and Vishal Burnwal are among those still awaiting payment and are considering legal action.

Lido's Acquisition and Continued Operations

Despite filing for bankruptcy, Lido Learning was not completely shut down. A significant portion of its student base and some employees were absorbed by Infinity Learn, an edtech platform owned by Sri Chaitanya Educational Institutions. While Infinity Learn claims no formal acquisition took place, the lack of transparency regarding this integration is noteworthy. The insolvency case filed by Lido at the NCLT Mumbai bench was withdrawn in May 2024.

Founder's New Venture and Accountability

While Lido's founder, Sahil Sheth, is building a new AI healthcare startup, the unpaid dues and the unclear status of Lido's assets raise questions about accountability. Legal experts suggest that former employees still have recourse to recover outstanding payments. However, the legal framework and company structure often protect founders, even when ethical concerns arise regarding employee treatment.

  • Former Lido employees are pursuing legal action for unpaid dues.
  • Lido's insolvency case has been withdrawn.
  • Lido's assets and liabilities remain unclear.
  • Sheth's new venture raises questions about ethical considerations and founder accountability.
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