- Indonesian edtech firm Zenius shut down after 20 years despite recent funding.
- High costs and failure to secure investments forced closure.
- Demise shows mounting struggles for edtech players post-pandemic.
Indonesian edtech company Zenius has ceased operations after 20 years in business. The closure on January 22nd came as a surprise, as CEO Sabda Putra Subekti said in June 2023 that the company was in “stable” condition even after its third round of layoffs.
Factors leading to Zenius’ shutdown
However, Subekti attributed the shutdown to high operational costs, debt obligations, and the failure to secure further investments or an acquirer.
At its height, Zenius had over 1,000 employees and raised $40 million from prominent investors like Northstar Group and Alpha JWC Ventures.
One of its key moves was acquiring offline tutoring giant Primagama in early 2022 for an undisclosed sum, but the shift to offline learning failed to deliver results.
Edtech struggles and industry implications
By June 2023, Zenius was facing financial struggles and had to cut marketing budgets across the company. Its attempts at fundraising and potential mergers & acquisitions all fell through by the end of 2023, sealing its fate.
The company’s franchise model means some offline outlets under the Primagama brand continue independently despite Zenius’ closure. The demise of a well-funded edtech startup like Zenius after 20 years of operations highlights the mounting struggles for players in the sector.
As consumers return to offline classes post-pandemic, other Indonesian edtech firms have resorted to mass layoffs just to stay afloat over the past two years. The industry continues to face headwinds in adapting business models and proving fundamentals to investors.
