Mumbai: Word is around that leading ed-tech major BYJU’s has been mulling over ceasing operations of WhiteHat Jr. However, as per media reports, it has not decided on the same yet.
The company, if it finally decides to do so, would carry out this decision as part of its cost-cutting measures, say media reports. BYJU’s has been dealing with escalating losses after the roaring success of online tutoring during the pandemic era started dwindling.
Very evidently, this step comes at a time when there is disarray among global tech companies which has led to job cuts, plunging global investment activity and sheared off the valuations of once-upon-a-time prosperous tech startups.
BYJU’s acquired the code-teaching startup firm for $300 million in 2020. Around a year ago, the e-learning startup laid off almost 300 employees globally. The code-teaching platform has downsized its team in India and other geographies where it operates. Several WhiteHat Jr employees have been asked to leave (approximately 600 of them, across the India and Brazil offices) and more than 800 of them put in their papers in March and April last year on the pretext of ‘working from office’.
WhiteHat Jr reported a total loss of Rs 1,690 crore in FY21. Between 1 April 2020 and 31 March 2021, the startup earned Rs 483.9 crore from its operations, while posting a total expense of Rs 2,175.2 crore.
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