Non-profit Code.org sues Byju’s-owned WhiteHat Jr

WhiteHat JR

Code.org, a non-profit organisation and educational website, sued Byju’s owned WhiteHat Jr in a US District Court, according to documents reviewed by Moneycontrol.

This comes at a time when the most-valued edtech company is battling a series of troubles on multiple fronts.

According to the document sourced by Moneycontrol, the non-profit organisation filed a case against WhiteHat Jr on December 1, alleging breach of contract against the latter.

TechCrunch was the first to report on the development.

In May 2021, WhiteHat Jr. signed an agreement with Code.org to enhance its proprietary coding course. With the partnership, WhiteHat Jr customised its curriculum based on the suite of offerings from Code.org, including the use of App Lab, Sprite Lab, and Game Lab.

This follows a recent Moneycontrol report on Byju's deciding to rebrand its wholly-owned subsidiary WhiteHat Jr, while fully integrating the company’s assets into other business verticals including its holding entity Think & Learn Pvt, a move aimed at reducing costs to tide over an immediate liquidity crunch.

WhiteHat Jr, which Byju's acquired for a whopping $300 million cash deal three years ago, has been one of the company's biggest loss-making subsidiaries, thanks to its high marketing and employee benefit costs.

Byju's infused over $100 million into the company since the acquisition for its expansion. A merger with self would thus help the company in reducing its overall burn, which will be critical considering its impending cash needs.

Recently, WhiteHat Jr's CEO Ananya Tripathi tendered her resignation, marking another senior-level exit at India's most-valued startup, Moneycontrol reported in August.