Adda247 raises $35 million in funding led by WestBridge Capital

• ByStartupStory     |    October 1, 2022

WestBridge Capital led a fresh $35 million round of funding for the edtech startup Adda247. Along with previous investors Info Edge, Asha Edu Tech, and JM Financial, Google also contributed to the round. The news is that Adda247 will raise a second round on September 21.

According to regulatory filings with the Registrar of Companies (RoC), the board of Adda247 has approved a special resolution to issue 52,476 Series B compulsory convertible preference shares (CCPS) at a price of Rs 53,236.8 per share in order to raise Rs 279.4 crore, or $35 million.

The round has been led by WestBridge Capital, which contributed Rs 150 crore ($18.75 million), followed by Info Edge and Google, which contributed Rs 75 crore and Rs 38.86 crore, respectively. JM Financial invested Rs 4.7 crore, compared to Rs 10.81 crore from Asha Edu Tech. Fintrackr believes that the company is worth approximately Rs 1,400 crore ($175 million) (post-allotment).

Anil Nagar and Saurabh Bansal founded Adda247, a test preparation platform for a variety of government exams, with a concentration on tier II and III cities. These tests include those for the railways, banking, SSC, and public sector employment. Additionally, the organisation is working to cover the K–12, JEE, NEET, and GATE markets.

The business asserts that it has more than 20 million active users per month and more than 30 million subscribers to YouTube. The Gurugram-based company claims that it holds more than 10,000 live classes each month.

Following the distribution of the Series B financing, WestBridge Capital is the company’s largest shareholder with a 28.36% interest, followed by Info Edge with a 23.01% stake. Anil Nagar, Saurabh Bansal, and Sushil Kumar, the company’s three founders, collectively own 29.78% of the shares. Google, JM Financial and Investment, and Asha Edu Tech each hold a stake of 4.2%, 2.77%, and 1.34%, respectively.

Although Adda247 has not yet submitted its financial data for FY22, according to its annual financial records filed with the RoC, its scale decreased 11.3% from Rs 40.25 crore in FY20 to Rs 35.7 crore in FY21. From Rs 7.96 crore in FY20 to Rs 15.2 crore in FY21, its losses grew dramatically by 91%.

According to our data analytics platform Fintrackr, funding in the edtech sector fell sharply from $5.82 billion in 2021 to $2 billion in 2022 as of August 15. Sunstone and Bhanzu each raised $35 million and $15 million in rounds during the last two months, respectively.

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