According to sources speaking to Business Today, coding platform WhiteHat Jr., one of edtech startup BYJU acquisitions, ‘S’s is being considered for closure. Business Today has heard that the company is making this move in order to reduce expenses as part of its effort to become profitable by March 2023.
BYJU’s to shut down WhiteHat Jr.?
Children’s programming, music, and arithmetic instruction are the focus of WhiteHat Jr. At an astounding $300 million, BYJU’s purchased them in the year 2020.
For using aggressive marketing tactics, WhiteHat Junior has drawn criticism. In addition, according to the most recent regulatory filings, the firm was the main cause of BYJU’S losses in FY 2021. In an interesting turn of events, BYJU’S co-founder Divya Gokulnath also mentioned that the business was not performing well in a conversation with Business Today.
All of our purchased firms are performing quite well, with the exception of WhiteHatJr, she noted. This information is released as the parent firm prepares to list Aakash as one of its other acquisitions in an initial public offering (IPO). Business Today was briefed by Gokulnath “We are attempting to list it in India and would like to. It has been on our list of things to do for a while.”
In response to Business Today’s inquiries, the corporation refuted the allegations. According to their response to the specific query, “We don’t have any intentions to shut down White Hat Junior. We are only enhancing it for efficient and natural growth. We are still completely devoted to providing top-notch educational opportunities and services that enable students to realize their best potential.”
Then they continued, “At the group level, BYJU’S is continually analyzing and improving its business processes in order to achieve worldwide expansion, in keeping with its unwavering commitment to attaining operational profitability. We constantly assess each of our corporate units to make sure they are on the same page with our strategy for profitability.”
