“Adda247, Supported by Google, Trims Workforce by 250-300 to Prolong Its Journey”
In a turn of events that’s raising a few eyebrows, Adda247, backed by Google, has given the pink slip to approximately 250-300 employees. This isn’t your usual office shenanigans; it’s all about extending their financial runway in the frosty funding season. Here’s the scoop, minus the jargon.
StudyIQ in the Spotlight
Adda247 decided to start its downsizing adventure by waving goodbye to 100-150 folks over at its UPSC-focused test prep side, StudyIQ. For those who aren’t in the loop, they grabbed StudyIQ back in December 2021, like it was a shiny new toy.
The Grand Employee Exodus
That wasn’t all, my friends. Another 150 employees from various departments—sales, content, and faculty—also got the boot. If you’re thinking that Adda247 sent out a friendly memo or gathered everyone for a heartfelt farewell speech, think again. There were no prior notices, townhall meetings, or compassionate words from HR. They went straight to business – “You’re out!”
Silence Speaks Louder Than Words
We tried reaching out to Adda247 for a chat about this, but our email must’ve ended up in their spam folder because we got no response. Either that or they’re too busy cleaning out their office supplies.
The Reason Behind It All
So, why the sudden urge to slim down the workforce? Adda247 doesn’t see the financial climate improving for the edtech sector. They’re not alone; it’s like they’re in a room full of investors playing a game of hide and seek.
Money Matters and Mixed Signals
Last year, they snagged a cool $35 million in investments, with Google throwing in some cash. They even threw money at their UPSC test prep vertical like it was confetti at a party. StudyIQ’s YouTube channel was raking in subscribers like there was no tomorrow, but the financial report card wasn’t all gold stars.
Their losses ballooned like a failed magic trick, going over 10 times what they were in the previous year. On the flip side, revenue managed to pull off some gymnastics moves, growing 1.6 times year on year.
The Shopping Spree Continues
Even with all the financial gymnastics, Adda247 went on a shopping spree and snatched up a 3D experiential learning platform called Veeksha. And they won’t tell us how much that cost. Secrets, secrets!
The Edtech Layoff Bandwagon
Adda247 has decided to hop on the bandwagon with other Indian edtech startups that have been doing the same dance – layoffs. From the bigwigs like BYJU’S to Unacademy, it’s a real party of “Sorry, you’re no longer needed.” Some, like Crejo.Fun and Udayy, have even closed shop because they couldn’t find any spare change in their couch cushions.
Funding Winter Blues
The edtech space is like the kid who didn’t get invited to the birthday party, and everyone’s running out of cake. More than 7,800 employees have been given the boot in the past year, thanks to the frozen funding landscape. With red numbers on their balance sheets, edtech startups in India aren’t exactly magnets for investor money right now.
The Upside to All This Downsize
But don’t lose all hope just yet. The edtech sector is expected to keep growing, thanks to a hybrid approach. According to an Inc42 report, the Indian edtech space could be worth a whopping $29 billion by 2030. So, while Adda247 trims the fat, they’re hoping for a better year ahead.
And there you have it, the lowdown on Adda247’s employee spring cleaning. Hopefully, they find their pot of gold at the end of this edtech rainbow.
