What went wrong with Doubtnut?

Once valued at an impressive $150 million, Doubtnut recently got acquired by Allen, a coaching institute, for a significantly modest $10 million.

So, what led to this unexpected twist?

In India, students invest their 70% of tution time in clarifying doubts. Doubtnut recognized a critical aspect – the difficulty of being stuck on homework without immediate assistance. While online platforms like Google and YouTube exist, translating handwritten equations into digital format remains an unmanageable task.

Doubtnut emerged as a savior, introducing a unique solution. Snap a picture of a problem, and wow! A video solution, diligently crafted by tech-savvy graduates, would be delivered promptly.

However, the plot thickened as Doubtnut's free screenshot-based service attracted users. To sustain itself financially, the platform considered expansion, possibly into live courses. Challenges emerged – soaring costs and encroachment into the territory of established players like Byju’s. Acquisition seemed a plausible exit strategy.

The hype surrounding the ed-tech industry during the pandemic reduced, coupled with problems at Byju’s. Across borders, Chegg, a prominent US ed-tech player, faced a similar problem, with the rise of ChatGPT. Chegg's stock dived, foretelling challenges for platforms relying on human-driven solutions.

Even on social media, comedian Tanmay Bhat's YouTube channel hinted at the growing influence of ChatGPT, potentially impacting Doubtnut. Investor interest declined amidst the disruption, worsened by the Indian government's interest in doubt-solving.

In the grand scheme of things, Doubtnut may have realized the difficulty in carving a distinctive niche. The acquisition by Allen could mark a promising new chapter for Doubtnut.

Until then...

Make sure to check out Shree Sarang, which delivers the best artificial jewellery for all types of outfits to enhance your beauty at the most affordable price and is also the sponsor of this article.