Code.org sues Byju’s subsidiary Whitehat Jr over pending license fees

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Code.org, a US-based nonprofit organization, has filed a lawsuit against the online learning platform WhiteHat Jr, a subsidiary of the Indian edtech giant Byju’s

The lawsuit, filed in a California district court, alleges that WhiteHat Jr breached a licensing contract by failing to make scheduled payments for using Code.org’s coding education platform, TechCrunch reported

Details of the agreement and breach

In 2020, Byju’s acquired WhiteHat Jr for $300 million. The following year, WhiteHat Jr entered into an agreement with Code.org, committing to pay $4 million over four years for the license. 

However, Code.org claims that WhiteHat Jr has not adhered to the payment schedule. Despite paying the 2022 licensing fee, WhiteHat Jr informed Code.org that it would be unable to make future payments as per the agreement.

Financial struggles and management changes at WhiteHat Jr

The lawsuit adds to the ongoing troubles for Byju’s, which has been facing multiple challenges, including disputes with lenders over a $1.2 billion loan and scrutiny from regulators.

WhiteHat Jr has been one of Byju’s most loss-making subsidiaries, with Byju’s investing over $100 million in it post-acquisition. The company has also seen high-level exits, including the resignation of WhiteHat Jr’s CEO Ananya Tripathi.

Code.org’s stance and legal arguments

Code.org’s legal complaint emphasizes that the original contract required WhiteHat Jr to fulfil all future licensing payments, amounting to $3 million, even in the event of termination. Despite repeated requests, WhiteHat Jr has allegedly failed to make any payments beyond the initial $1 million for 2022.

Broader impact on Byju’s

The legal challenge is part of a series of issues for Byju’s, which is also grappling with delays in filing financial accounts and governance concerns.

The company, valued at $22 billion in early 2022, has been considering strategies to reduce costs, including potentially winding down WhiteHat Jr. The lawsuit and these challenges reflect the broader difficulties faced by Byju’s in managing its acquisitions and sustaining its growth trajectory.

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We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Code.org sues Byju’s subsidiary Whitehat Jr over pending license fees

Code.org, a US-based nonprofit organization, has filed a lawsuit against the online learning platform WhiteHat Jr, a subsidiary of the Indian edtech giant Byju’s

The lawsuit, filed in a California district court, alleges that WhiteHat Jr breached a licensing contract by failing to make scheduled payments for using Code.org’s coding education platform, TechCrunch reported

Details of the agreement and breach

In 2020, Byju’s acquired WhiteHat Jr for $300 million. The following year, WhiteHat Jr entered into an agreement with Code.org, committing to pay $4 million over four years for the license. 

However, Code.org claims that WhiteHat Jr has not adhered to the payment schedule. Despite paying the 2022 licensing fee, WhiteHat Jr informed Code.org that it would be unable to make future payments as per the agreement.

Financial struggles and management changes at WhiteHat Jr

The lawsuit adds to the ongoing troubles for Byju’s, which has been facing multiple challenges, including disputes with lenders over a $1.2 billion loan and scrutiny from regulators.

WhiteHat Jr has been one of Byju’s most loss-making subsidiaries, with Byju’s investing over $100 million in it post-acquisition. The company has also seen high-level exits, including the resignation of WhiteHat Jr’s CEO Ananya Tripathi.

Code.org’s stance and legal arguments

Code.org’s legal complaint emphasizes that the original contract required WhiteHat Jr to fulfil all future licensing payments, amounting to $3 million, even in the event of termination. Despite repeated requests, WhiteHat Jr has allegedly failed to make any payments beyond the initial $1 million for 2022.

Broader impact on Byju’s

The legal challenge is part of a series of issues for Byju’s, which is also grappling with delays in filing financial accounts and governance concerns.

The company, valued at $22 billion in early 2022, has been considering strategies to reduce costs, including potentially winding down WhiteHat Jr. The lawsuit and these challenges reflect the broader difficulties faced by Byju’s in managing its acquisitions and sustaining its growth trajectory.

Join our new WhatsApp Channel for the latest startup news updates

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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