- The edtech unicorn says no such plan, is being optimised for growth instead
The media reports have it that the edtech company Byju’s is planning to shut down its subsidiary WhiteHatJr which is a coding platform.
Though the company spokesperson says, “We have no plans of shutting it down. We are merely optimising it for organic and efficient growth. We remain fully committed to delivering world-class educational experiences and solutions that empower students to achieve their full potential.”
The company had acquired it over two years ago at an enterprise valuation of $300 million. It was one of the most high-profile acquisitions of the company out of the 17 acquisitions it has made till date. The firm now feels that the coding platform has attracted much criticism and lost the potential it used to have once.
Also, sales conversions have dropped hugely after the schools have reopened post-Covid, hence WhiteHatJr’s custom acquisition cost (CAC) wasn’t sufficient for the amount of revenue it was raking in.
“At the group level, in accordance with its steadfast commitment towards achieving operational profitability, BYJU’S is constantly evaluating and optimising its business operations towards global growth. As an ongoing activity, we are actively evaluating all our business units to ensure that they are aligned with our path to profitability,” says Byju’s spokesperson.
The development has come just a couple of months after it laid off a massive number of employees. Previous year, the company had announced that it would be cutting jobs as part of a restructuring effort, which reportedly affected around 10 per cent of its staff. The step was believed to be a sign that the platform was struggling to maintain its growth and was experiencing increased competition from other edtech firms.