BYJU’S, an ed-tech company based in Bengaluru, is reportedly considering shutting down WhiteHat Jr, a coding platform that has received significant criticism, to cut costs. TechCrunch reported that BYJU’S has been in discussions about closing the business division in recent weeks but has yet to make a decision.
In 2020, BYJU’S acquired the coding ed-tech startup for $300 million but reportedly spent less than $235 million on the deal. At the time of publication, YourStory was unable to verify the report independently, and BYJU’S did not respond to queries.
When these talks were taking place, the large educational technology company significantly reduced its expenses. The report mentioned that the company was spending about $14 million monthly on its coding platform until recently but has now cut back on its marketing spending and laid off thousands of employees.
In June of last year, WhiteHat Jr dismissed roughly 300 employees in an effort to reduce costs. The coding platform has faced criticism for making false claims and using aggressive tactics to attract students. WhiteHat Jr faced even more backlash when it sued several of its critics. He later withdrew the lawsuit.
Byju Raveendran, the Founder and CEO of BYJU’S, stated in November at TechSparks 2022 that the company is still determining how to approach the market with WhiteHat Jr, but its other major acquisitions have been profitable.
However, BYJU’S has faced criticism due to its questionable accounting practices and significant downsizing. According to a recent report by YourStory, BYJU’S laid off over 900 employees across various teams in a new round of job cuts.
The company, valued at $22 billion in its last funding round, reported a loss of Rs 4,564.38 crore in FY21, which was higher than the Rs 305.5 crore loss in the previous fiscal year.
How big is the ed-tech market in India?
The ed-tech market in India has grown significantly in recent years and is estimated to be worth over $10 billion as of December 2022.
The COVID-19 pandemic has accelerated the sector’s growth, with many students and educational institutions adopting online learning due to lockdowns and social distancing measures.
The market is expected to grow more in the coming years, with increasing internet penetration and a growing demand for affordable and accessible education solutions driving demand for ed-tech products and services.
Cuemath, Vedantu, and Toppr are significant participants in the Indian ed-tech industry that compete with WhiteHat Jr by providing coding and other related courses.
