A new USD 35 million round of funding for the edtech business Adda247 was led by WestBridge Capital. Google also participated in the round, joining prior investors Info Edge, Asha Edu Tech, and JM Financial.
The board of Adda247 adopted a special resolution to issue 52,476 Series B CCPS at a price of Rs 53,236.8 per share in order to raise Rs 279.4 crore, or USD 35 million, according to regulatory filings with the Registrar of Companies (RoC).
WestBridge Capital, which committed Rs 150 crore (USD 18.75 million) to the round, was followed by Info Edge and Google, who each made contributions of Rs 75 crore and Rs 38.86 crore. JM Financial made an investment of Rs 4.7 crore versus Asha Edu Tech’s Rs 10.81 crore. According to Fintrackr, the company is worth about Rs 1,400 crore (USD 175 million) (post-allotment).
More about the startup:
Adda247 is a portal for test preparation for various government exams with a focus on tier II and III cities, developed by Anil Nagar and Saurabh Bansal. These examinations cover those for jobs in the banks, railroads, SSC, and public sector. The company is also attempting to reach the K-12, JEE, NEET, and GATE markets.
The company claims to have more than 20 million active users per month and more than 30 million YouTube subscribers. The Gurugram-based business asserts that each month it offers more than 10,000 live classes.
WestBridge Capital holds the largest owner in the company after the Series B financing was distributed, with a 28.36% interest, followed by Info Edge with a 23.01% interest. The three founders of the business, Anil Nagar, Saurabh Bansal, and Sushil Kumar, collectively own 29.78% of the shares. A total of 4.2%, 2.77%, and 1.34% of the company are owned by Google, JM Financial and Investment, and Asha Edu Tech, respectively.
Despite not having submitted its financial information during FY22, Adda247’s scale shrank 11.3% from Rs 40.25 crore in FY20 to Rs 35.7 crore in FY21, according to its yearly financial records given to the RoC. Its losses increased significantly by 91% from Rs 7.96 crore in FY20 to Rs 15.2 crore in FY21.
Fintrackr, the data analytics platform, reports that as of August 15, funding for edtech declined drastically from USD 5.82 billion in 2021 to USD 2 billion in 2022. During the previous two months, Sunstone and Bhanzu each raised USD 35 million and USD 15 million in rounds.
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