Bengaluru: Byju’s said it has acquired online coding classes startup WhiteHat Jr for $300 million in one of the rare all-cash deals in the startup ecosystem.
The deal, which has been in the works for the last few months, will help the education unicorn startup foray into the fast-growing segment as WhiteHat Jr claims an annualised revenue run rate of $150 million.
The deal will give the founders and investors of Mumbai-based WhiteHat Jr — founded less than two years ago — one of the fastest and most profitable exits in the startup ecosystem. The startup was founded by former Discovery Networks India CEO Karan Bajaj and backed by Nexus Venture Partners, Omidyar Network and Owl Ventures.
WhiteHat Jr was also in talks to raise venture capital funding and had got offers at valuations ranging from $200-250 million, but it chose to go with Byju’s offer, said sources familiar with the matter.
WhiteHat Jr said recently it will expand to Canada, UK, Australia and New Zealand (ANZ) after the US, which accounts for a majority of its revenues.
Byju’s was recently valued at over $10 billion after it raised funding from famed Silicon Valley investor and analyst Mary Meeker’s Bond Capital. It claimed that it has doubled its revenues from $189 million (Rs 1,430 crore) in financial year 2019, when it was also profitable, to Rs 2,800 crore in financial year 2020.
It also said that it has 64 million registered students, over 4 million paid subscribers and annual renewal rates as high as 85%. Over the years, the company has also signed up a partnership with Walt Disney to use its characters to teach kids besides also becoming the lead sponsor for the Indian cricket team.