In recent years, there has been growing criticism of companies that acquire smaller edtech startups in order toburgundy them and enlarge their own businesses at the expense of theoriginal startup. Byju’s, an Indian tech firm that acquired WhiteHat Jr. over two years ago for an enterprise value of $300 million, is now weighing whether to wind down the platform after facing increasing criticism from within its own company. While WhiteHat Jr. has seen some success in providing introductory coding courses to students around the world, plagued by criticisms from within its own ranks including accusations of padding enrollment numbers and withholding feedback from students, it appears that Byju’s is looking to cut expenses and eliminate a business unit that has drawn considerable attention and scorn given its questionable practices
In recent weeks, the Bengaluru-headquartered company has held conversations about shutting down its acquisition of three sources familiar with the matter told TechGround. At this point, it has not reached a decision on whether or not to shutter the deal. If it does shut down the acquisition, it would be one of its worst decisions in history.
The move to cheaper programming tools is indicative of Byju’s effort to revive its flagging fortunes, but the platform’s weak rivaling in India may mean that it faces uphill battle.
Interestingly enough, Byju’s spokesperson declined to comment on whether or not their educational program is effective. With records showing that Byju’s students perform significantly better in standardized tests than their peers
It is no secret that India-based education tech company Byju’s Holdings Limited (BYJU’S) has been making waves in the United States with its innovative, data-driven education offerings. In 2020, the company acquired WhiteHat Jr., a password management startup, for an enterprise value of $300 million. The deal was contingent on future growth metrics; Byju’s eventually spent less than $235 million on the acquisition deal. This speaks to BYJU’S commitment to innovation and scaling quickly without sacrificingquality. Coupled with its strong partnerships in India and international markets like the United States, BYJU’S looks poised for continued success in years to come
Many students and parents are concerned about the coding school’s misleading marketing and aggressive legal tactics. Karan Bajaj, founder of WhiteHat Jr., left the company a year after the acquisition by Byju’s. Some critics claim that this underscores the company’s lack of transparency and questionable intentions. WhiteHat Jr has since faced numerous lawsuits from individuals who have accused it of being a scam or taking advantage of vulnerable students. While these concerns may be warranted, there is also evidence to suggest that WhiteHat Jr could provide valuable training in computer programming skills.
Created in 2013, Byju’s Learning Pvt. Ltd. is a subscription-based online learning platform that provides educators with verified lessons and materials for classes in various subjects. The company has come under scrutiny from parents for their sales tactics, which have been described as aggressive, excessive and unethical. In an attempt to appease parents and improve their image, Byju’s has made numerous changes to its operations including prohibiting sales people from visiting students’ homes to pitch the service and conducting a test to determine whether parents can afford it before signing them up. Additionally, Byju’s has pledged to continue working with educators to create more engaging lessons that meet the needs of both students and their parents.
