Edtech major has spun off its coding platform , which it acquired in 2020, into an independent business.
“We are excited to see CodeChef operate as an independent company, and we are proud to have played a role in its growth and success,” Gaurav Munjal, Co-founder and CEO of Unacademy Group, said in a statement. “We look forward to supporting CodeChef as an investor such that it continues to innovate and provide high-quality programming education to students around the world.”
Unacademy will hold a 30% stake in the new hived-off programming company as an investor, the edtech unicorn said, adding that it has also infused initial capital that will help the separate entity function for the next 12-18 months.
“We are grateful to Unacademy Group and Gaurav for believing in the team and taking this leap with us. We are super excited to build a successful and profitable learning product as we continue this journey,” Hrishikesh Kelkar, Business Head, CodeChef said in a statement.
CodeChef was started in 2009 by Bhavin Turakhia, Founder and CEO of Flock, Radix and Zeta, as a part of Directi. It was developed as a platform to help programmers enhance their skills and create a community.
In June 2020, Unacademy acquired CodeChef and added it under its umbrella, instead of Directi.
“In the past, we never really focused on the financial viability of CodeChef, but being generously supported by Directi, and later by Unacademy, allowed us to keep doing our work without worrying about the financials,” the programming platform said in a tweet.
“But recently, due to the larger global economic slowdown, it has become clear that this cannot continue, and we need to find ways to sustain ourselves. Starting April, CodeChef will be an independent company owned and run by the current team,” it added.
This development comes at a time when edtech unicorns are bearing losses, slowing expansion plans, and trying to burn as little cash as possible amid the funding winter.
Recently, Unacademy rival BYJU’S denied a media report that it was considering a plan to shut WhiteHat Jr, the coding startup it had acquired in 2020, to reduce costs. In November, speaking at TechSparks 2022, Founder and CEO Byju Raveendran said the company was still figuring out the go-to-market strategy for WhiteHat Jr.
