Adda247’s Loss Jumps 1.5X To INR 296 Cr In FY23 On Higher Expenses

Edtech startup Adda247 saw its losses widen 1.5X to INR 296 Cr in the financial year 2022-23 (FY23) from INR 203.5 Cr in the previous fiscal year on the back of higher expenses.

Its bottom line was hurt despite almost a 2X jump in operating revenue to INR 114.8 Cr in the year under review from INR 60.9 Cr in FY22.

Founded in 2016 by Anil Nagar and Saurabh Bansal, Adda247 offers online coaching for competitive exams. The edtech platform also offers video courses and mock tests for more than 500 competitive exams in 12 Indian languages.

Last year, Adda247 elevated its chief product officer (CPO) Chandan Singh as cofounder of the startup.

The company’s total revenue, including interest income, stood at INR 129.6 Cr in FY23 as against INR 64 Cr in the previous year.

Zooming Into Expenses

The edtech platform’s total expenses jumped 1.6X to INR 425.1 Cr in the reported fiscal from INR 267 Cr in FY22.

Adda247’s employee benefit expenses witnessed a 2.8X rise to INR 87.9 Cr in FY23 from INR 29.6 Cr in the previous year.

The edtech platform spent INR 22.3 Cr for advertising-promotion during FY23, as compared to INR 7.9 Cr in FY22.

It is pertinent to note that the company spent INR 185.7 Cr for impairment loss on financial assets.

Last year, it acquired Veeksha for an undisclosed amount to offer interactive learning modules to the students.

Adda247 counts WestBridge Capital and JM Financial as its marquee investors. Last year, the edtech platform reportedly fired around 250-300 employees across multiple verticals to extend its runway amid the ongoing funding winter.

The startup last raised funding in October 2022, when it secured $35 Mn from the likes of Google, WestBridge Capital, Info Edge and Asha Impact. Adda247 competes with the likes of BYJU’s, PhysicsWallah and Unacademy.