Edtech startup Adda247 has raised $35 million in a new round led by WestBridge Capital. Google also joined the round along with existing investors Info Edge, Asha Edu Tech and JM Financial.
Entrack had exclusively reported that Adda247 is raising a new round on September 21.
The board at Adda247 has passed a special resolution to issue 52,476 Series B compulsory convertible preference shares (CCPS) at an issue price of Rs 53,236.8 per share to raise Rs 279.4 crore or $35 million, regulatory filings with the Registrar of Companies (RoC) show.
WestBridge Capital has spearheaded the round by infusing Rs 150 crore or $18.75 million followed by Info Edge and Google who put in Rs 75 crore and Rs 38.86 crore respectively. Asha Edu Tech has invested Rs 10.81 crore whereas JM Financial infused Rs 4.7 crore.
As per Fintrackr’s estimates, the company has been valued at around Rs 1,400 crore or $175 million (post-allotment).
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 and III towns. The company is also making efforts to cover K-12, JEE and NEET, GATE segments.
The startup claims to have over 20 million monthly active users and more than 30 million YouTube subscribers. According to the Gurugram-based firm, it conducts over 10,000 live classes each month.
After the allotment of the Series B round, WestBridge Capital holds 28.36% stake in the company followed by Info Edge which owns 23.01% stake. Promoters of Adda247 Anil Nagar, Saurabh Bansal and Sushil Kumar collectively hold 29.78% shares. Asha Edu Tech, Google and JM Financial and Investment commands 4.2%, 2.77% and 1.34% stake respectively.
While Adda247 is yet to file its financial numbers for FY22, its scale shrank 11.3% to Rs 35.7 crore during FY21 from Rs 40.25 crore in FY20, as per its annual financial statements with the RoC. Its losses ballooned 91% to Rs 15.2 crore in FY21 from Rs 7.96 crore during FY20.
Funding in the edtech segment saw a steep fall from $5.82 billion in 2021 to $2 billion in 2022 till August 15, according to our data intelligence platform Fintrackr. In the past two months, Sunstone and Bhanzu raised $35 million and $15 million rounds respectively.