Aanchal BansalCA Finalist
One of the most successful startup deals happened recently which became a trending news in the startup circles. A barely 18 months old Edu-Tech company was acquired for a massive value of $300Mn which, in Indian money, translates to about Rs. 2,240 crore.
Before we dive into what exactly happened in what is being called the fastest successful startup exits, let’s acquaint ourselves with the 2 companies, WhiteHat Jr. and Byju’s- both on an individual level; what they do, how they operate, revenues, and the like.
Starting with WhiteHat Jr., the company or the ‘learning platform’ is a portal for kids who are interested in specifically learning how to code. Karan Bajaj, the founder of WhiteHat Jr. defines his vision behind the initiative as –
“Technology is at the center of every human interaction today and we had set out to create a coding curriculum that was being delivered live while connecting students and teachers like never before.”
With this view and intention, the 2018 incorporated company holds a revenue of $150 million, which may have acted as a fair enough attractor for Byju’s. Moreover, with over 5000 all female teachers already enrolled and teaching, it is a feat in itself.
Moving forward to discussing Byju’s, most children and many young adults have either used the app, or heard the name in discussions, news and advertisements. Byju’s was incorporated in 2011, is an Indian educational technology (ed-tech) and online tutoring firm providing students with video lectures on a variety of subjects. In March 2019, it was the world’s most valued Ed-tech company, valued at Rs. 38,500 crores.
Coming to current revenues, Byju’s doubled its revenue to ₹2,800 crores in FY20 and has clocked a revenue of ₹500 crores in July alone.
Now that we hold a basic understanding of what both the companies engaged in the acquisition do, it wouldn’t be tough for one to guess about why Byju’s decided to go ahead and collaborate with WhiteHat Jr. Inclusivity of coding at an early age in the New Education Policy of India (NEP) has opened many doors and Byju’s has most certainly decided to get a piece of the pie by acquiring WhiteHat Jr.
When it comes to running a successful business or company, a lot of factors play a vital role, such as diversification, innovation, and the like. One such and one of the most important factors is globalization- the integration of our economy with the world economy.
It is no secret that Byju’s intends to increase its reach outside India, to other countries. This became another major attractor towards the target company WhiteHat Jr. which, in its 2 years of existence, has been able to create a decent presence for itself in US, Canada, UK, Australia, etc. All in all, this major acquisition truly seems like a match made in heaven. In troubling times like these, such progress is ultimately what keeps the hope alive for everyone.
Note: Digital Dialogues holds the right to use this piece of content as authorised by the owner. If you wish to use material from this article for purposes of your own that go beyond ‘fair use’ you must obtain permission from the copyright owner. Also, there might be references taken from various sources on the internet. The main intent is to share across information to the reader!
Subscribe to the website to get regular updates!
*Don’t forget to confirm your subscription through the mail received in your inbox