Adda247, an edtech platform supported by Google made a job cut of approximately 250–300 workers, across all of its verticals. Across the nation, layoffs are still devastating edtech companies. An Entrackr report states that StudyIQ, an edtech platform with a UPSC focus, laid off between 100 and 150 workers.
In December 2021, Adda247 paid roughly $20 million to acquire StudyIQ.
It is reported that 150 workers were requested to move to other verticals, such as content and sales. This is the company’s first layoff in a few years. The laid-off employees were reportedly asked to leave without being given any sort of notification.
Adda247 was established in 2016 by Anil Nagar and Saurabh Bansal to meet the educational needs of millions of students from tier 2 and tier 3 cities. The company presents itself on the social media platform X, as “India’s largest vernacular learning platform – backed by Google, WestBridge, InfoEdge, Asha Impact #BuildingTheNationThroughEducation Telegram.”
The primary reasons behind this state of affairs are the steadily dropping financing figures, which are the main cause of the bleeding startup job market in India. A study claims that in 2022, Indian strartups raised $25 billion, a 40% decrease from the historic 2021 funding round.
As we approach the midway point of 2023, financing in the third-largest startup ecosystem globally has substantially decreased. In the first half of 2023, Indian entrepreneurs raised $5.4 billion, which is 72% less than the almost $19 billion they raised in the same period the previous year. 111 Indian firms have laid off an estimated 28,871+ workers since the funding winter started in 2022.
Adda247 secured $35 million in October of last year in a round headed by WestBridge Capital. Google also became a new investor in the round. Info Edge and Asha Impact, two longtime investors, also took part in the investment round.
Edtech company Byju’s recently declared that as part of a “business restructuring exercise,” it will be laying off 4,000–5,000 workers. In the last two years, the company has laid off more than 10,000 employees.
