Synopsis
Edtech platform Adda247 has reduced its workforce by 20%. This move comes as the company experiences slowing revenue growth. Adda247 is preparing for a planned initial public offering. The company aims to cut costs and streamline operations. Employees in product and content verticals were affected. Adda247 said it is committed to supporting impacted staff.The layoffs have happened at verticals such as product and content, one current and two laid-off employees told ET. The company, which reported a 1% decline in its operating revenue in FY25, wants to reduce costs ahead of its planned initial public offering (IPO), employees said.
“HR told us that there’s some restructuring to cut costs and reduce redundancies. No other reason was given. Some of us were asked to leave with immediate effect,” one employee said.
Business Standard was the first to report the development.
“As we scale and our user base grows, we regularly evaluate how our teams, structures, and goals are aligned to serve our customers better. As part of this process, we made some structural adjustments across the organisation to sharpen our focus, improve execution, and ensure we build around our learners’ needs,” a spokesperson for Adda247 said.
“Our overall team size has remained broadly stable over the past year, and we continue to hire selectively across key roles that directly strengthen our ability to serve our users. We remain committed to supporting all impacted employees in line with their contracts and applicable policies,” the spokesperson added.
Adda247, which has raised over $60 million to date from Westbridge Capital, Google, JM Financial, and Info Edge Ventures, primarily provides online test preparation courses for private and government exams. The edtech last raised $35 million in its series C round in 2021 at a valuation of almost $200 million, per sources. The company currently has about 1,000 employees on its rolls.
In FY24, Adda247 reported almost 100% growth in revenue, at Rs 219 crore, but it contracted in FY25 to 217 crore while the company’s loss widened slightly to Rs 103 crore from Rs 101 crore. In media interactions, the company’s founder and CEO Anil Nagar has said that Adda247 will start preparing for its IPO and plans to list in 12-18 months.
In 2023, the company ventured into test preparation for medical and engineering entrance exams with a platform called Sankalp, and spent almost Rs 100 crore in poaching star teachers, per media reports.
