"EDITION 89"

Published: 6/11/2020

Good Morning! Starting the day off with some Jio news (yes they are planning to raise more) with TPG Capital in active discussions. Sources say TPG might invest between $1-1.5 B and they would be the 8th entity to invest in Jio (and 9th overall investment).

Now coming to the day's news, Unacademy launches a completely new product and another EdTech co which has seen incredible growth in subscriptions.

  • https://bit.ly/2UykrXR: Unacademy Group launches Graphy
  • ➡️ About a month ago I saw something interesting on Gaurav Munjal's (Unacademy CEO) twitter bio. He had changed it from Unacademy CEO → Unacademy Group CEO. Which got me wondering what they had cooking up.

    ➡️ And now we know! The couple has a completely separate team that has spun out a new app called Graphy, launching with an Android app currently and an iOS app coming soon. The app is being targeted as an "interactive book" of sorts, with the launch video having the caption- "Books haven’t changed since a really really really long time. Maybe it’s time to change that"

    ➡️ I took the app for a spin today and was pleasantly surprised. I do want to mention that it doesn't really feel an alternative book to me, but more so high quality production of short form video content (Think TikTok's video interface meets Netflix quality content).

    ➡️ To me, it was quite similar to the new American media app, Quibi, but Graphy (to me) has much more engaging content though limited. The platform currently only has a handful of "Graphers" (content creators) who individually price their content between ₹99 - ₹250.

    ➡️ Graphers release their content chapter by chapter (every week I presume) and I'm excited on the pricing side for a couple of reasons- Initially it makes to not have a subscription for all the content until you have enough content so I believe Graphy will switch to that at some point. But I'd also be interested to see if they try out payments on a micro-transaction level (imagine you could pay for each chapter instead of the whole story).

    ➡️ The product is still in beta so this is all very early days, but I'm very curious and excited to see where this hybrid paid entertainment-education product goes.

    2. https://bit.ly/2MK3OnQ: WhiteHat Jr is teaching kids coding ➡️ Since EdTech and upskilling are the current hottest sector, it only makes sense WhiteHat Jr is doing very well. The company offers coding classes to children aged between the ages of 6 and 14

    ➡️ The news article also claims that WhiteHat Jr also teaches children (yes children) AI and Space Technology, which honestly sounds like bullshit to me. I do believe they are teaching kids the basics of coding and how build small programs and games.

    ➡️ The company also prices its course at a premium- starting at ₹5,999 (for 8 classes) to ₹1,79,999 (for 300 classes) and the average ticket size is about ₹37,000. The company already has 20,000 paid subscribers which is quite impressive.

    ➡️ There are, however, a couple of points in the story which sound a little suspect to me with the company claiming to be at $40M revenue run rate. But with 20k students that means the average student is paying $2000 annually (₹1.5L vs ₹37k which is the average ticket size).

    ➡️ The company has also expanded in the US, where the courses are priced even higher and the main reason for the cost is because the company has a 1 : 1 student teacher ratio. They do plan to move to a 1 : 2 ratio which will definitely reduce prices.

    ➡️ The company is growing quite aggressively with the pandemic pushing MoM growth to 100% (which is again very impressive) and the company is focussed on hiring teachers to keep up with the demand.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/NirantK/status/1270602737181265921

    Correction: So I just chatted with a couple folks at White Hat Jr with regards to their India and US subscription break up. And given that news, the company realistically actually does have a $40M revenue run rate, which is very very impressive especially for a company that has only existed for a couple of years.