Edtech start-up Adda247 has raised $35 million funding in another round, as per a report by Entrackr. Led by WestBridge Capital, the Edtech start-up’s funding round was also joined by existing investors Info Edge, Asha Edu Tech, JM Financial and the tech giant Google.
According to Entrackr’s report, regulatory filings with the Registrar of Companies (RoC) mention that Adda247’s board passed a special resolution to issue 52,476 Series B compulsory convertible preference shares. These were issued at a price of Rs. 53,236.8 per share in order to raise the said amount of $35 million or Rs. 279 crore.
Adda247’s funding round was led by WestBridge Capital in which the company invested Rs 150 crore. This was followed by Info Edge and Google with the next highest investors with investments worth Rs 75 crore and Rs 39 crore respectively. While the round didn’t end here, there were also JM Financial and Asha Edu Tech that invested Rs 5 crore and Rs 11 crore respectively.
With such an exorbitant contribution in Series B financing, WestBridge Capital has reportedly become the largest shareholder of Adda247 with a 28 per cent stake. The company’s stake is followed by Info Edge with a 23 per cent share and other companies like Google, JM Financial and Asha Edu Tech hold 4 per cent, 3 per cent and 1 per cent respectively.
According to Fintrackr, such large investments are not entirely indicative of better numbers in funding. The data analytics platform has reported a sharp fall from $6 billion in 2021 to $2 billion in 2022 (as of August 15, 2022) in terms of funding in the edtech sector.
Adda247, famed as a test preparation platform is founded by the tech duo Anil Nagar and Saurabh Bansal. The platform grew to prominence due to its preparatory resources on a variety of government exams with special emphasis on tier 2 and tier 3 cities. Some of the most famous preparatory kits for government exams include railways, banking, Staff Selection Commission (SSC) and so on.
While it is a Gurugram-based company, Adda247 aims to cover all of India and is soon planning to launch itself in the Joint Entrance Examination (JEE), National Eligibility cum Entrance Test (NEET) and other exam markets as well. It also claims to have more 20 million active users per month. However, Outlook couldn’t independently verify the claims.