Mumbai-based competitive coding platform CodeChef is set to become an independent company owned and run by its current team after splitting from edtech unicorn Unacademy in April. CodeChef had not focused on the financial viability of its operations, having been supported by Directi, founded by Bhavin Turakhia, and Unacademy. But the larger global economic slowdown has made it clear that this cannot continue, said CodeChef in a blog post. Following the split, Unacademy is making a one-time investment to allow CodeChef to start operations independently.
The platform has paused several competitions in a bid to reduce costs. Unacademy is unlikely to cause any layoffs at CodeChef since the startup operates with a small team and is said to be good for cash for the foreseeable future. Additionally, it’s interesting to note that CodeChef introduced a premium subscription program called CodeChef Pro in July 2022, with subscriptions starting from INR 3,999 per year. This move suggests that the platform is looking for new revenue streams to sustain its operations and growth.