In a surprising development, Google-backed edtech company Adda247 has made significant staff reductions, affecting approximately 250-300 employees across various divisions. The layoffs come as a response to financial challenges, reflecting broader issues within the edtech industry.
StudyIQ and More Impacted
Sources indicate that the layoffs primarily targeted the StudyIQ division, a UPSC-focused test preparation platform that Adda247 acquired in December 2021. In this department alone, around 100-150 employees faced layoffs. Furthermore, the impact extended to other areas, including sales, content, and faculty teams, with approximately 150 more employees being affected.
One of the most striking aspects of these layoffs is the abrupt manner in which they were carried out. Reports suggest that employees were given no prior notice and were asked to resign immediately. This sudden action has understandably raised concerns among those affected.
Adda247’s Funding Journey
Founded by Anil Nagar and Saurabh Bansal in 2016, Adda247 had recently secured a significant investment of $35 million in October of the previous year. This round of funding saw Google joining as a new investor, alongside existing backers like Info Edge and Asha Edu Tech.
Adda247’s Reach and Services
Adda247 is renowned for catering to the educational needs of students hailing from tier 2 and 3 cities in India. The platform offers a wide array of e-learning programs across various sectors, including banking, railways, SSC exams, teaching, defence, engineering, UPSC, and state PCS.
In addition to these, the company provides valuable resources for entrance exams like NEET, JEE, GATE, and law entrance exams. The platform extends its services to school students from classes 9 to 12 through online classes, aiming to make quality education accessible to a broader audience.
The layoffs at Adda247 are part of a broader trend within the edtech sector. Notably, major player Byju’s recently announced its plans to lay off 4,000-5,000 employees as part of a business restructuring initiative. This comes after Byju’s had already cut over 10,000 positions over the past two years.
These workforce adjustments in the edtech sector highlight the challenges faced by companies in the field as they navigate financial strains and shifting market dynamics. It remains to be seen how Adda247 and other edtech firms will adapt and evolve in response to these challenges.