Indian teachers unpaid as Saudi edtech Noon fails salary commitment

Noon Academy, a Saudi Arabia-based edtech startup, has left its Indian staff waiting for pending salaries for over 11 months. The company began laying off staff last year and discontinued classes on November 16, 2022. Despite promises of payments, Noon Academy has failed to honor its commitments.

The startup, which entered India in 2019, requested an extension on March 14 to clear the dues, citing a delay in closing an ongoing funding round. While teachers received half of their dues on March 23, the remaining amount, along with promised bonuses, remains unpaid.

Noon Academy has not responded to queries regarding the situation. In a recent email, the company apologized for the delay and attributed it to unforeseen fundraising issues. They assured employees that they are working to resolve the problem promptly but did not provide a specific timeline for payment.

The edtech sector, particularly in the K-12 space, has been struggling as investor funding has dried up and demand for online learning has decreased. Major edtech firms, including Byju's and Unacademy, have laid off over 8,000 Indian employees since 2022.

Noon Academy, founded in 2013 by Mohammed Aldhalaan and Aziz Alsaeed, initially focused on test preparation in Saudi Arabia. It has since evolved into a social learning platform, offering virtual classes, on-demand tutorials, and live study group sessions.

According to Crunchbase, Noon Academy has raised $21.6 million in funding. Its backers include venture capital firm 500 Global, which has invested in Indian unicorn Cars24 and other edtech companies. After securing Series A funding of $8.6 million in June 2019, the company expanded into India to enhance its products and build the necessary tech infrastructure.

Former employees have alleged that Noon Academy was considering an exit from India, leading to the complete shutdown of its operations in the country. Following the termination of all educators last year, the company abruptly discontinued classes in November 2022.

While Noon Academy claims a presence in over eight countries, its website and application currently indicate operations in only four: Saudi Arabia, Egypt, Iraq, and Pakistan. India was previously listed as an option. The company offered courses for grades 11 and 12, as well as test preparation for competitive exams. However, live courses for Indian students are no longer available on its platforms.

Noon Academy's India team, based in Bengaluru, consisted of approximately 100 employees, including contractual staff. The company terminated its 40 contractual teachers in July 2022, well before their agreements were set to end. Subsequently, most of the permanent staff were laid off by the end of February. While permanent employees reportedly received their full payments upon termination, the contractual teachers have been waiting for nearly 11 months to receive their outstanding dues.

The delay in salary payments by Noon Academy has left Indian employees in a state of uncertainty and financial strain. The company's failure to fulfill its commitments highlights the challenges faced by the edtech industry and the importance of financial stability and transparency in such startups.