Unacademy Spins Off CodeChef Coding Platform to Improve Efficiencies
- ByStartupStory | March 30, 2023
Unacademy, which is backed by SoftBank, has separated its coding platform CodeChef into a distinct entity. This strategic decision is aimed at reducing non-essential costs, and will aid the edtech unicorn in achieving profitability. CodeChef will receive a one-time investment from Unacademy, and will function as an autonomous firm from April 1 onwards. The current team will continue to own and operate the coding platform, which will no longer be affiliated with any organisation.
A source familiar with the matter has revealed that Unacademy’s investment in CodeChef will be Rs 3 crore, giving them a 30% stake in the newly formed entity. CodeChef announced the development via Twitter, acknowledging that in the past, they did not prioritize the financial viability of the platform, as they were backed by Directi and later, by Unacademy. However, the separation from Unacademy will allow CodeChef to operate as an independent company and focus on its financial sustainability.
CodeChef has acknowledged that due to the global economic slowdown, it has become imperative for the platform to focus on its financial sustainability. The coding platform was acquired by Unacademy in June 2020, to launch a coding vertical for schoolchildren. Previously a non-profit venture, CodeChef was owned by Directi and fully integrated with Sorting Hat Technologies, Unacademy’s parent company. With the hiving off of CodeChef into a separate entity, the platform will be able to operate independently and prioritize its financial viability.
CodeChef, a platform founded 14 years ago, facilitates computer programming learning through contests that encourage active participation. CodeChef’s founder, Bhavin Thurakia, and Directi have been on the board of Unacademy since 2017. Unacademy acquired CodeChef to compete with its top rival, Byju’s, which had earlier purchased WhiteHat Junior for a similar purpose. The decision to spin off CodeChef as an independent entity comes at a time when the online coding learning platform market is facing challenges in the post-Covid scenario.
Media reports suggest that Byju Raveendran, the CEO of Byju’s, has spoken about the challenges faced by WhiteHat Junior in recent interviews. There have also been reports of discussions about shutting down the coding platform, which Byju’s has denied. Meanwhile, Gaurav Munjal, the CEO and co-founder of Unacademy, has tweeted about CodeChef’s future prospects as an independent entity. Munjal expressed confidence in the team’s ability to take CodeChef to new heights, stating that the platform will operate independently moving forward.
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