Edtech major Unacademy separates coding platform CodeChef as an independent entity

ISN Webteam
30 Mar 2023
Edtech major Unacademy separates coding platform CodeChef as an independent entity

Edtech major unacademy's CEO Gaurav Munjal announced the separation of the coding platform CodeChef, which it acquired in June 2020 for an undisclosed sum.

“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 remain committed to our larger mission of democratizing education, and 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," Gaurav said.

Post-development, Unacademy will hold a 30% stake in the company as an investor and has infused capital that will help the newly hived-off entity to function for the next 12-18 months.

In the past, we never really focused on the financial viability of CodeChef, but being generously supported by Directi, & later by Unacademy allowed us to keep doing our work without worrying about the financials," CodeChef addressed the development in a Twitter thread.

"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 in April, CodeChef will be an independent company owned and run by the current team," the company said.

CodeChef was founded in 2009 by Bhavin Turakhia with the aim of helping programmers enhance their skills and create a community.

The announcement comes amid Indian startups funding winter due to global macroeconomic conditions and started focusing on achieving profitability.

Also Read:

Follow IndianStartupNews on FacebookInstagramTwitter for the latest updates from the startup ecosystem.