Info Edge Invests INR 80 Cr in Test-Prep Startup Adda247, Increases Stake To 23.01%

Noida-based internet giant Info Edge on Wednesday (September 21) announced an investment of INR 80 Cr in vernacular test-prep startup Adda247.

“This is to inform you that the Board of Directors of the company has approved entering into agreement to invest about INR 80 Cr in Metis Eduventures Private Limited (Adda247) as primary acquisition of shares,” Info Edge said in a regulatory filing. 

Post this investment, Info Edge will own 23.01% stake in Adda247 on a fully converted and diluted basis. 

As part of the deal, the company will acquire 14,088 Series B compulsorily convertible preference shares of the parent company. 

The Naukri parent said that the investment is focused on creating value in the medium to long run. 

“This follow on investment by the company is in furtherance of company’s investment strategy, which includes making external financial investments that are focused on value creation in the medium to long term,” the filing added. 

This comes nearly a year after Info Edge invested INR 41.2 Cr in the edtech platform last November. The company had also invested INR 21 Cr as part of Adda247’s Series B investment round in November 2019. Prior to that, the Naukri-parent had invested INR 7.06 Cr in the test-preparation platform in October of 2019. 

Incorporated in 2016 by Anil Nagar and Saurabh Bansal, Adda247 provides online coaching for government job entrance tests. The edtech platform offers live classes, video courses and mock tests for more than 500 competitive exams in 12 vernacular languages.

Backed by WestBridge Capital and JM Financial, Adda247 had raised $20 Mn in total funding excluding this investment. It claims to have more than 1,000 teachers on its roll and has more than 2 Mn paid users on its platform. 

Adda247 claims to conduct more than 10,000 live classes a month and has a current annual gross revenue rate of $30 Mn.

The startup had a turnover of INR 40.5 Cr at the end of the financial year 2019-20 (FY20), which grew further to INR 46.7 Cr in FY21. In FY22, Adda247 reported a turnover of INR 64 Cr.

This comes days after Info Edge participated in a $54.5 Mn funding round of Gurugram-based payments service provider DotPe. Prior to that, the internet giant also invested INR 90 Cr in proptech startup Broker Network. In August, the company also said that it would invest INR 300 Cr in its wholly-owned subsidiary Startup Investments Holding Limited.

An Inc42 report estimates the market size of the Indian edtech space to soar to $10.4 Bn by 2025. It also projects the number of paid edtech users in the country to grow to 37 Mn by 2025. 

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