Ubiquitous broadband need of the hour

Ubiquitous broadband need of the hour

Byju’s reported acquisition of WhiteHat Jr, a platform that teaches children coding, by India’s largest edtech startup Byju’s for about $300 million, deserves to be cheered. It is a good example of the new kinds of opportunities for value creation made possible by the diffusion of ubiquitous broadband and mobile internet connectivity. On its part, the government should dip into its unused Universal Service Obligation Fund to boost connectivity in rural areas that still do not have decent broadband, even mobile broadband. Entrepreneurs should find inspiration in the possibility to create value using connectivity: Whitehead Jr was founded only in 2018.

WhiteHat Jr helps children aged 6-14 code games, animation and applications online. Within a short span, the company created value, showing a clear stream of revenues, making it a fit candidate for acquisition. Byju’s acquisition, through an all-cash deal, will provide an early exit to WhiteHat’s investors — Omidyar Network, Owl Ventures and Nexus Venture Partners — who together hold 47% stake. It will also allow Byju’s to launch coding.

Byju’s has said that it will invest in WhiteHat Jr’s technology platform and product innovation while expanding the teacher base to cater to demand from new markets.

Deal-making in the edtech space is gaining traction following the closing down of classrooms due to the pandemic that has given a new drive to online education. School children would need to be equipped to ride the internet to explore the universe of knowledge. They need access to fast broadband. Web based innovation calls for stable, fast connectivity. With a considerably large startup ecosystem in the country, the need is also to ensure a regulatory regime that is conducive to innovation. Over to the government.