Adda247 Cuts 20% Jobs as EdTech Firm Prepares for IPO Launch

As part of its internal reorganisation in preparation for its anticipated initial public offering (IPO) next year, Google-backed edtech giant Adda247 has fired 20% of its staff, or about 200 people. The layoffs affected workers in a wide range of departments, according to news accounts. Employees in departments like product, design, content, and CUET (common university entrance test) as well as instructors in subjects like UPSC and judiciary preparation were among those laid off.

The reorganisation, according to Adda247, who spoke with a news site, affected all departments and not just one team or vertical. In accordance with their contracts and relevant policies, the brand is dedicated to providing support to all affected employees. As it has been hiring carefully for important positions over the last year, the total staff size has stayed "broadly stable", it said.

Layoffs Indicate Adda247’s Move to Decrease Cash Burn

Staff reductions occurred at the tail end of April, with lower-level workers informed that their selection was contingent on their performance. However, senior staff have revealed that certain exam categories are being closed as part of the company's ongoing restructuring and cost-cutting efforts. According to sources within the company, Adda247 had previously laid off all of the staff after shuttering its Hindi-language CUET vertical.

In addition, they mentioned that between 50 and 100 academic members were let go or moved to contract or freelance positions in the months of October and November of last year. In addition, workers at the startup have voiced worries regarding Adda247's financial runway. Further indicating the declining interest in StudyIQ's online business vertical while noting that certain segments have been experiencing slower development.

In order to bolster its civil services exam preparation options, the business purchased StudyIQ Education in December 2021 for around $20 million. According to the reports, the startup can anticipate saving INR 5 Cr per year through the restructure.

Adda247’s Journey Till Now

Anil Nagar and Saurabh Bansal established Adda247 in 2016 to provide as a platform for test preparation for more than 500 tests. These exams encompass CUET, IIT JEE, NEET, UPSC, and several government job exams. Live online classes, video courses on demand, practice exams, ebooks, books, and more are all part of its product lineup. Venture capitalists such as InfoEdge, Google, and WestBridge have contributed approximately $67 million to the project so far.

Reorganisation is part of the startup's preparations for an initial public offering (IPO) during the next twelve to eighteen months. Nonetheless, growth has stalled in recent years, mirroring the industry-wide trend. While income and expenses were relatively unchanged in FY25, the net loss shrank 2.5% year-on-year to INR 103.6 Cr. Nagar, cofounder and CEO, informed a media outlet earlier this month that the company's operating revenue was on the rise, even though it has not yet filed its FY26 financial accounts. Test prep accounted for roughly 75% of total income, which helped decrease the loss during the fiscal.