Adda247 posts Rs 115 Cr revenue in FY23; losses zoom 4X

On the lines of FY22, edtech platform Adda247 has maintained its growth journey in the last fiscal year as its revenue from operation spiked around 89%. However, the Westbridge-backed firm’s losses remained a concern which blew 4X during the same period.

Gurugram-based Adda247’s revenue from operations jumped to Rs 115 crore in FY23 from Rs 61 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.

Founded by Anil Nagar and Saurabh Bansal, Adda247 is a test prep platform for public sector exams such as railways, banking, SSC, and state level government jobs. Besides its core proposition, it’s also making efforts to cover K-12, JEE and GATE segments.

Adda247 recently claimed that it has 50 million monthly active users and over 2 million paid users.

Revenue Breakdown

FY22

Total ₹ 61 Cr

FY23

Total ₹ 115 Cr

To check complete Revenue Breakdown visit thekredible.comView full data

The sale of online courses, e-books, and test series formed 83% of the total operating revenue which surged 2X to Rs 96 crore in FY23. The rest of the income came from the sale of books/courseware and partner networks. See TheKredible for the detailed revenue breakup.

On the likes of other edtech firms, its employee benefits formed 37% of the total expenditure. This cost increased nearly threefold to Rs 88 crore in FY23 which includes Rs 15 crore as ESOP cost. The firm’s faculty expenses or cost to tutors also saw a 3X growth to Rs 67 crore in FY23.

Expenses Breakdown

FY22

Total ₹ 92 Cr

FY23

Total ₹ 239 Cr

• Cost of books and coursewear

• Employee benefit expense

• Information technology

• Advertising promotional

• Faculty expenses

• Others

To check complete Expense Breakdown visit thekredible.comView full data

Burn on books/study materials, advertising cum promotional, legal professional, information technology, and other overheads catalyzed  Adda247’s overall expenditure by 2.6X to Rs 239 crore in FY23 from Rs 92 crore in FY22. 

Head to TheKredible for a complete expense breakdown.

Caveat: We excluded the cost of the fair value of financial assets from the total expense, which stood at Rs 186 crore and Rs 175 crore in FY23 and FY22, respectively.

The significant increase in employee benefits and advertising costs outpaced the revenue growth of the seven-year-old firm, resulting in a 4X surge in its losses to Rs 110 crore in FY23 as compared to Rs 28 crore in FY22. Its ROCE and EBITDA margin stood at -108.5% and -223.1% respectively. On a unit level, it spent Rs 2.08 to earn a rupee in FY23.

FY22-FY23

	FY22	FY23
EBITDA Margin	-314%	-223.1%
Expense/₹ of Op Revenue	₹1.51	₹2.08
ROCE	-281%	-108.5%

Importantly, the company has a total current assets worth Rs 289 crore in FY23 which includes Rs 277 crore of cash and bank balances.

Adda247 has raised over $55 million to date and was valued at $175 million during its last fundraise in October 2022. According to the startup data intelligence platform TheKredible, Westbridge is the largest external stakeholder with 28.35% followed by Indo Edge and Asha Edu Tech. Its co-founders Anil Nagar and Saurabh Bansal cumulatively command 26.51% of the company.

In October, chief executive Nagar had said that Adda247 is targeting profitability by FY25 and is also eyeing an IPO in the next two to three years.