Info Edge bets INR 80 Cr in Test-Prep Startup Adda247, Increases Stake hold to 23.01%

Edtech Startup

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

“This is to inform you that the board of directors of the company has approved the execution of an agreement to invest approximately INR 80 crore in Metis Eduventures Private Limited (Adda247) as an initial share acquisition,” Info Edge said in a regulatory filing.

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

As part of the transaction, the company will acquire 14,088 compulsorily exchangeable Series B preferred shares of the parent company. Parent company Naukri said the investment is aimed at creating value in the medium to long term.

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

As per filing, “This continuation of the company’s investments is in support of the company’s investment strategy, which includes external financial investments that are focused on value creation in the medium to long term.”

This comes almost a year after Info Edge invested INR 41.2 Cr in the edtech platform last November. The company also invested INR 21 Cr in the Adda247 Series B investment round in November 2019. Before this, parent company Naukri invested INR 7.06 Cr in the test preparation platform in October 2019.

Backed by WestBridge Capital and JM Financial, Adda247 has raised $20 million in total funding without this investment. It claims to have over 1,000 teachers on its roster and over 2 million paid users on its platform.
Adda247 claims to host more than 10,000 live lessons per month and has a current annual gross revenue of $30 million.

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

This comes days after Info Edge participated in Gurugram-based payment service provider DotPe’s $54.5 million funding round. Earlier, the internet giant had also invested INR 90 cr in prop-tech startup Broker Network. In August, the company also said it would invest INR 300 crore in its wholly-owned subsidiary Startup Investments Holding Limited.

As per reports, the market size of the Indian ed-tech space will rise to $10.4 billion by 2025. It also projects that the number of paid edtech users in the country will grow to 37 million by 2025.

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