Adda247, an edtech startup focused on the government test preparation segment, is in advanced stage talks to raise $20 million from a new and existing investor, said two sources aware of the details of the transaction.
On September 21, Entrackr had exclusively reported that Adda247 was scouting for a new round. The Gurugram-based firm was also in talks with edtech giant Unacademy for a potential acquisition. But the deal has fallen through for undisclosed reasons.
“Westbridge is in late-stage conversations to lead the fresh round while existing investor Info Edge has already committed a significant chunk,” said one of the sources on the condition of anonymity. “The terms of the deal have been almost sealed and the round may materialise in a few weeks from now.”
As of now, Adda247 has mopped up $10 million in risk capital including a $6 million Series B round which was led by Info Edge in November 2019.
This is the second major investment for Westbridge in an edtech startup in India this year. The venture capital firm had recently participated in Vedantu’s Series E round.
According to Entrackr’s sources, Adda247 is likely to be valued in the range of $80-100 million in the potential round. If the investment materialises around this number, the company’s valuation will record a 3X jump. It was valued at around $25-30 million as of November 2019.
Caveat: The terms of the deal may change at the last moment.
Queries sent to Adda247, Westbridge and InfoEdge did not elicit an immediate response. We’ll update the post in case they do.
Founded by Anil Nagar and Saurabh Bansal, Adda247 is a test prep platform for various government exams such as railways, banking, SSC and public sector jobs focusing on tier II & tier III. Besides its core proposition, it’s also trying to cover K-12, JEE and NEET, GATE segments.
As per Adda247 app, it targets learners outside the metros and provides courses in 10 languages including Tamil, Telugu, Malayalam, Bengali and Odia. While Adda247 competes with all the leading edtech platforms that focus on government exams preparation, its direct competitors include Testbook and Pariksha.