BYJU'S planning to shut WhiteHat Jr, claim sources

Edtech unicorn BYJU'S is allegedly mulling shutting down one of its acquisitions, coding platform WhiteHat Jr, sources told Business Today. The company is taking this step to cut costs amid its bid to reach profitability by March 2023, Business Today has learned.

WhiteHat Jr specialises in teaching programming, music, and mathematics to children. They were acquired by BYJU's in the year 2020 for a whopping $300 million.

WhiteHat Jr has been criticised for its aggressive marketing techniques. Moreover, the company was the largest contributor to BYJU'S losses in FY 2021, as per the latest regulatory filings.

Interestingly, BYJU'S co-founder Divya Gokulnath also noted in an exchange with Business Today that the company was not doing very well.

“Except for WhiteHatJr, all our acquired companies are doing very well,” she said. 

This news comes against the backdrop of the parent company planning to launch an IPO for one of its other acquisitions, Aakash.

Gokulnath told Business Today, "We would like to list it in India and we are working on it. We have been planning it for a few months now."

The company responded to Business Today's queries and denied the claims. They said, "Regarding the specific question on White Hat Junior, we have no plans of shutting it down. We are merely optimizing 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."

They further added, "At the group level, in accordance with its steadfast commitment towards achieving operational profitability, BYJU'S is constantly evaluating and optimizing 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."

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