Adda247, a prominent Indian edtech platform backed by Google, has laid off approximately 20% of its workforce, affecting around 200 employees.
The cuts targeted teams in product, content, design, and teaching roles for exams like UPSC, judiciary, and CUET, as part of a broader operational streamlining.
Company Background
Founded in 2016 and headquartered in Gurugram, Adda247 specializes in online preparation for government and competitive exams, serving millions in Tier-2 and Tier-3 cities.
The platform has raised over $60 million in funding, including a $35 million round in 2022 led by WestBridge Capital with participation from Google and Info Edge.
Financial Challenges
In FY25, Adda247's operating revenue stagnated at around Rs 217 crore, marking a slight decline from the previous year after years of rapid growth during the pandemic edtech boom.
Net losses hovered near Rs 103 crore, prompting cost-cutting measures to extend cash runway and boost profitability.
Previous Restructurings
This is not the first round of layoffs; the company cut 250-300 jobs in 2023 and 50-100 faculty members last year, shifting many to freelance roles.
Path to IPO
The recent workforce reduction aims to sharpen focus on core test-prep business, which accounts for 75% of revenue, ahead of a planned public listing in 12-18 months.
A company spokesperson described the changes as structural adjustments to better align teams with learner needs, noting selective hiring continues in key areas.
Broader Edtech Landscape
India's edtech sector, once valued at billions, faces a 'winter' with widespread layoffs at firms like Byju's and Unacademy, as growth shifts from user acquisition to sustainable profits.
A non-obvious angle: Weak performance in acquired assets like StudyIQ highlights risks of diversification beyond proven govt-exam prep amid post-pandemic normalization.
For everyday users, these cuts signal job instability in startups but reassure focus on reliable exam resources critical for millions chasing secure government positions.
Looking ahead, successful navigation could position Adda247 as a IPO frontrunner in a consolidating market, emphasizing efficiency over expansion.
Maria Lourdes
