Adda247 Lays Off 20% of Workforce Ahead of IPO

Adda247, an edtech startup backed by Google, has laid off more than 200 employees, representing almost 20% of its total staff. This move is part of a restructuring initiative in preparation for its upcoming IPO, as reported by Business Standard. The layoffs affected various teams, including those in product, design, content, CUET, UPSC, judiciary preparation, and teaching roles. The process was executed at the company’s Gurugram office on April 30. Startup Superb has contacted Adda247 for further information.

Details About Adda247

Founded by Anil Nagar and Saurabh Bansal, Adda247 provides online courses for test preparations in government examinations, including UPSC, banking, SSC, and railways, among others. To date, the startup has successfully raised approximately $67 million from investors such as Google, WestBridge Capital, Info Edge, and Asha Impact.

Restructuring Plans and Financials

The company’s restructuring aligns with its goals for a public listing within the next 12 to 18 months. Anil Nagar, the founder and CEO, mentioned that Adda247 achieved around Rs 240 crore in revenue in FY25, while the losses were reported to be close to Rs 70 crore. This latest round of layoffs is expected to generate savings of nearly Rs 5 crore annually in salary costs.

Impact and Market Conditions

Employees have raised concerns over slowing growth in certain sectors, diminishing engagement in StudyIQ’s online operations, and worries regarding the company’s cash runway. In a prior round of layoffs in October 2023, Adda247 had terminated the jobs of approximately 250-300 employees across different areas, including sales, content, and faculty. Startup Superb exclusively reported on this latest development.