Education technology major BYJU’s is facing challenges in managing the growth of WhiteHat Jr, an e-learning coding platform, it acquired for $300 million.
WhiteHat Jr, which had more than 8,000 employees across the country at its peak, has some hundreds of roles left as it never picked up pace and brought revenues for the company, media report said.
BYJU’s IANS new agency that they have no plans of shutting down WhiteHat Jr.
“We are optimising 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,” the company spokesperson said.
The company said that it is constantly evaluating and optimizing its business operations towards global growth.
BYJU’s acquired WhiteHat Jr in July 2020 for nearly $300 million.
WhiteHat Jr reported Rs 1,690 crore loss in the financial year 2021, while its expenses reached Rs 2,175 crore in FY21 — compared to Rs 69.7 crore in FY20.
WhiteHat Jr shut its schools division that targeted to take its flagship coding curriculum to 10 lakh school students by the next academic year.
Its foray into teaching music online, offering guitar and piano playing, yielded no fruitful results.
BYJU’s which was last valued at $22 billion, will not be able to meet its March 2023 deadline to achieve group-level profitability, as it envisioned in its earnings in October last year.
The company, which has sacked thousands of employees to date and has taken deeper cuts, is unable to achieve profitability at group level amid mounting losses. BYJU’s reported loss of Rs 4,588 crore for the fiscal year that ended on March 31, 2021.