Google-backed Adda247 lays off about 300 employees
Around 150 employees from sales, content creation, and faculty positions at Adda247 are impacted, while an additional 100-150 individuals from StudyIQ will also be affected by the layoffs.
Google-backed edtech firm has reportedly initiated a round of workforce reductions, affecting about 300 employees across various departments.
Around 150 employees engaged in roles spanning sales, content creation, and faculty positions at Adda247 are impacted by the layoffs, Entrackr reported. Additionally, about 100-150 individuals from StudyIQ Education, a UPSC-focused edtech platform, will be affected, the report added.
Adda247, in a strategic move to bolster its offerings in the UPSC and state PSC exams, acquired StudyIQ for about $20 million in a cash and stock deal in December 2021.
The acquisition of StudyIQ followed closely on the heels of Adda247 securing $35 million in funding through a round led by WestBridge Capital. In this round, Google came on board as a new investor, participating alongside existing investors, including Info Edge and Asha Impact.
YourStory has reached out to Adda247 with queries. This story will be updated with the company's response.
The layoffs come at a time when several startups in the space, including the unicorns with projected valuations of at least $1 billion, are struggling to cope with mounting losses, laying off employees, slowing their expansion plans, and seeking to reduce their expenses amid a funding winter.
Most recently, it was reported that edtech major was planning a workforce reduction of over 5,000 permanent and contractual employees in a restructuring effort aimed at cost control.
Co-founded in 2016 by Anil Nagar and Saurabh Bansal, Adda247 is a government test preparation platform. It caters to students in Tier II, Tier III, and smaller towns, offering online education in 12 vernacular languages. The edtech startup claims to have 50 million monthly active users, and a total of over two million paid users.
In June this year, Adda247 acquired Ahmedabad-based 3D experiential learning platform Veeksha for an undisclosed amount.
Adda247 witnessed a 68.3% increase in revenue, touching Rs 61.5 crore during the fiscal year 2021-22, compared to Rs 36.55 crore in the previous fiscal year (FY21). Concurrently, its losses surged by 90%, totalling Rs 28.8 crore in FY22, up from Rs 15.2 crore in FY21.
Edited by Kanishk Singh