Edtech major UpGrad has announced that it will revoke the salary cut decision that was initiated earlier in the wake of coronavirus crises. The company has said that it will pay back 100 percent pay cut to its employees in the July Salary, following good performance in the months of April and June. However, the company refused to disclose the growth numbers and financial details.
Separately, Ronnie Screwvala backed company has announced that it has extended its work from home policy till December 31.
Like all other companies and startups, UpGrad also decided to go for a cost-cutting from April to cope with financial uncertainties in the aftermath of coronavirus crises. The Mumbai headquartered company had announced salary reduction of up to 30% for its employees, albeit the pay cut was subjected to seniority and designation of the employees.
UpGrad is probably now the first company to revoke the pay cut decision amid the challenging economic situation. This decision might set the ball rolling for other Edtech players to take similar decisions. Edtech sector has found to be an exception in dealing the pandemic crises, since the lockdown has actually helped in propelling the growth of the online education industry.
UpGrad was in upbeat mood before the beginning of COVID 19 crises. The company said in Q1 FY21 that its annual run rate is expected to cross INR 500 crore following the launch of their live learning platform. The company also recently said that learners and trainers on its platform grew by an impressive 75% in April.
UpGrad essentially competes with Udemy, which is an American online learning platform that is now looking to grow aggressively in the Indian market.
The mass adoption of internet and smartphones over the last few years has set the Indian edtech industry on a buoyant mood. The likes of Upgrad , Udemy, Byju’s, Vedantu and scores of other edtech players are now looking to capitalize on the massive outreach opportunity that technology has given them.