In the ever-evolving landscape of startups, there’s a prevalent trend of companies donning the tech label, often to attract investors and boost perceived value. However, the recent WeWork debacle reminds us that not every entity that claims to be tech-based has a solid foundation.

WeWork, once valued at a staggering $47 billion, portrayed itself as a tech company revolutionising office spaces. In reality, it was a real estate leasing firm, specialising in subdividing large offices for short-term rentals. The Hulu documentary WeWork: Or the Making and Breaking of a $47 Billion Unicorn highlighted the disconnect between WeWork’s image and its operational reality, prompting one observer, Scott Galloway, to summarise bluntly, “For god’s sake, they’re renting fucking desks.”

This cautionary tale resonates with a current startup shrouded in the allure of edtech while lacking the technological backbone. Seeking a substantial funding injection of ₹10 crore, this company’s claim to the edtech throne is marred by the startling absence of a tech co-founder. The irony continues to unfold as the company relies heavily on manual processes—from booking confirmations to lead outreach, all conducted via traditional phone calls. In an era dominated by digital automation, relying on phone calls to engage potential leads seems out of touch, as few people are inclined to answer unknown calls, especially from sales representatives. Compounding the issue is the company’s reliance on ads for lead generation, making its growth susceptible to the unpredictable dynamics of paid advertising.

Despite claims of a substantial customer base exceeding 5,000, insider information suggests the actual count hovers around 2,000. More troubling is the inequitable distribution of ownership. Allegedly, the co-founders retain the entirety of the company’s ownership, and none of the early employees were granted equity. Furthermore, the company’s website in reality is nothing more than a minimum viable product (MVP) hastily assembled at its inception, raising concerns about the long-term sustainability and scalability of the supposed edtech platform.

In the wake of WeWork’s downfall, the startup ecosystem must scrutinise claims of tech prowess and recognise that not every company fits the tech mold. The cautionary tale extends beyond unicorns to the very essence of the entrepreneurial spirit, urging a more honest and transparent portrayal of businesses and their technological foundations.