BYJU’S Denies Plans to Shut Down WhiteHat Jr
- ByStartupStory | February 24, 2023
BYJU’s has denied rumors of plans to shut down WhiteHat Jr, a coding platform it acquired. The company spokesperson stated that instead, BYJU’s is focused on optimizing Whitehat Jr for “organic and efficient growth” as it grapples with mounting losses following the pandemic-era boom in online tutoring.
BYJU’s, the edtech major that acquired coding platform WhiteHat Jr for $300 million in 2020, has dismissed rumors of its plans to shut down the startup. A spokesperson for BYJU’s confirmed that the company has no intention of shutting down WhiteHat Jr and is instead focused on optimizing the platform for “organic and efficient growth.” The denial came amid recent reports that BYJU’s had been in talks about shutting down the coding platform.
BYJU’S spokesperson has stated that the edtech major remains committed to achieving operational profitability and is continuously assessing and optimizing its business operations to drive global growth. As part of this ongoing effort, the company is actively evaluating all its business units to ensure alignment with the path to profitability.
Despite these evaluations, the spokesperson reiterated BYJU’S’s full commitment to delivering exceptional educational experiences and solutions that empower students to reach their maximum potential.
Around one year ago, the e-learning startup underwent a global restructuring process that resulted in the layoff of almost 300 employees. This move was in response to the ongoing trend of cost-cutting and restructuring across major edtech firms. The downsizing impacted workers in India as well as other regions where the code-teaching platform operates.
Reports suggest that as many as 600 employees may have been laid off by WhiteHat Jr across Brazil and India. Additionally, in March and April of last year, over 800 WhiteHat Jr employees resigned after being asked to work from the office. The coding platform has been experiencing losses, with a reported total loss of ₹1,690 crore in FY21. During the period between April 1, 2020, and March 31, 2021, the startup earned ₹483.9 crore from its operations but recorded total expenses of ₹2,175.2 crore.
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