6 highlights
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The more I think about it, the more I find myself asking the same question: How is BrightChamps different from WhiteHat Jr? And if it isnât, why are investors betting so heavily on the company?
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Then there is the perennial question of whether you should introduce your children to coding, AI and machine learning when they canât even tie their shoelacesâbut thatâs subjective.
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So now the question of what the investors see in the company. Two things: the approach and geographies.
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While WhiteHat Jr relied heavily on pressure sales tactics, misleading ads and celebrity endorsement, BrightChamps has taken a more product-led approach to growth. People in the know told me that the company hasnât spent a single investor dollar on advertising yet and doesnât have people to make cold sales calls.
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The other reason is the geographies where BrightChamps operates. The company started with Dubai and branched out to other Gulf countries before crossing over to Southeast Asia. It claims it is the market leader in those countries today.
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The ratio of the lifetime value of the customer to customer acquisition costs (LTV to CAC, a key metric for many consumer internet companies) is where the magic lies. The Gulf market has purchasing power but isnât big enough. On the other hand, Southeast Asia is a larger market, but adoption is slower, and customer acquisition costs are higher. So you have to look at scale, but then WhiteHat Jr has tapped out the Indian market and also made parents wary. So customer acquisition costs are super high here as well.