Quick Take
- Adda247 lays off 200 employees — 20% of its workforce — on April 30, 2026, at its Gurugram office.
- The Google-backed edtech targets group-level profitability by FY27 and a public listing in 12-18 months.
- Restructuring saves Rs 5 Cr annually; StudyIQ traction woes and CUET vertical shutdown drove the cuts.
Adda247 lays off approximately 200 employees — nearly 20% of its total workforce — as part of an internal restructuring exercise carried out on April 30, 2026, at the company’s Gurugram office, according to a Business Standard report citing multiple employees and sources. The job cuts hit teams across product, design, content, CUET preparation, and teaching staff in UPSC and judiciary preparation categories. The Gurugram-based test prep platform, backed by Google, WestBridge Capital, and InfoEdge, is preparing for a public listing over the next 12 to 18 months and targeting group-level profitability by FY27.
In an emailed statement ,
StartupFeed Insight
The Rs 5 Cr annual savings from cutting 200 employees — roughly Rs 2.5 Lakh average salary per affected role — tells a precise story. These are not senior leadership positions being eliminated. This is a broad sweep through content, design, and teaching functions that signals a structural shift: Adda247 is moving toward a leaner, AI-assisted content and course delivery model where fewer full-time educators and creators produce more. The more troubling number in this restructuring is the StudyIQ acquisition — $20 Mn spent in December 2021 — whose online business is now described by employees as underperforming, with the CUET Hindi vertical already shut. That acquisition, at its original investment, has not delivered. For IPO-bound edtech companies in India
Why Adda247 Lays Off 200 Staff Ahead of IPO
| Metric | Detail | Notes |
|---|---|---|
| Employees Laid Off | ~200 | ~20% of total workforce |
| Date | April 30, 2026 | Gurugram HQ; bouncers reportedly on site |
| Teams Affected | Product, design, content, CUET, UPSC, judiciary teaching | Multiple verticals — not limited to one function |
| Annual Savings | Rs 5 Cr | From reduced payroll |
| FY25 Revenue | ~Rs 240 Cr (CEO statement) | Rs 217 Cr per RoC filings; gap likely due to accounting scope |
| FY25 Net Loss | ~Rs 70 Cr (CEO statement) | Rs 103.6 Cr per Inc42 FY25 financial tracker |
| Total Funding Raised | ~$67 Mn | Google, WestBridge Capital, InfoEdge |
| IPO Timeline | 12-18 months | FY27-FY28 target window |
| Profitability Target | Group-level by FY27 | Management guidance |
| Revenue Mix (FY25) | Test prep 75%, skilling 15%, CUET 10% | Per CEO Anil Nagar |
| StudyIQ Acquisition | $20 Mn (December 2021) | Online business underperforming; CUET Hindi shut |
| Previous Layoffs | 250-300 in Oct 2023; 50-100 faculty in Oct-Nov 2025 | Pattern of biannual restructuring cycles |
Three factors converged on April 30. First, IPO preparation: investors and public markets now demand a clear path to profitability before listing, and Adda247’s FY25 financials — with losses between Rs 70 Cr and Rs 103.6 Cr on revenue of Rs 217-240 Cr — are not yet IPO-ready by that standard. Second, segment-level weakness: employees cited the CUET Hindi vertical shutdown, slowing StudyIQ online traction, and broader concerns about cash runway. Third, structural optimisation: Adda247 said the exercise was about aligning teams and goals with its user base growth, not simply cutting costs.
Employees at the company told Business Standard that the layoffs follow a pattern.
About Adda247
Adda247 is a Gurugram-based multilingual test preparation platform founded in 2016 by Anil Nagar and Saurabh Bansal, along with co-founders Paresh Goel and Anupam Jindal. The company covers more than 500 competitive examinations including banking, SSC, railways, UPSC, NEET, IIT JEE, CUET, and state-level government job tests, offering live online classes, on-demand video courses, mock tests, ebooks, and physical books. In FY25, CEO Nagar stated revenue of approximately Rs 240 Cr with losses of about Rs 70 Cr, with test preparation accounting for 75% of revenues. Adda247 has raised approximately $67 Mn from investors including Google, WestBridge Capital, and InfoEdge. Its acquisitions include StudyIQ Education (December 2021, ~$20 Mn), Veeksha, and Ekagrata Eduserv.
How Does Adda247 Compare to Its Edtech Rivals?
| Platform | Focus | FY25 Status | IPO Plans |
|---|---|---|---|
| Adda247 | Govt exam test prep (Hindi/vernacular) | ~Rs 240 Cr revenue; loss ~Rs 70 Cr | 12-18 months |
| PhysicsWallah | NEET, JEE, K-12 | Profitable (FY24 PAT +ve); listed ambitions | FY26-FY27 likely |
| Unacademy | UPSC, JEE, CAT, professional learning | Restructuring ongoing; loss-making | No near-term listing |
| Testbook | Govt exam test prep (English-first) | Growth stage; revenue undisclosed | Private |
Adda247’s key differentiator has always been its vernacular-first approach — serving Hindi-speaking students in Tier 2 and Tier 3 cities who are preparing for government jobs in banking, SSC, railways, and state public service commissions. That moat remains intact. What has weakened is the CUET and civil services online business, categories where Adda247 placed acquisition bets that have not yet compounded into durable revenue.
What’s Next
Adda247 lays the groundwork for an IPO filing expected in 12-18 months, which puts the DRHP submission likely in the first half of FY27. The company must demonstrate EBITDA break-even or near-positive performance in at least two consecutive quarters before that filing is credible with institutional investors. Watch for any FY26 revenue guidance that confirms whether the Rs 5 Cr payroll saving has been offset by continued revenue growth in the core government exam segment.
Will cutting 200 employees prove sufficient — or will Adda247 need another restructuring round before public markets open their doors?
Frequently Asked Questions
Why did Adda247 lay off 200 employees in April 2026?
Adda247 lays off approximately 200 employees — 20% of its workforce — primarily to reduce costs ahead of a planned IPO in the next 12 to 18 months and to target group-level profitability by FY27. The restructuring follows slowing growth in some segments, the shutdown of the Hindi-language CUET vertical, and weaker-than-expected performance in StudyIQ’s online business — a platform Adda247 acquired for $20 Mn in December 2021. The annual payroll savings from the exercise amount to approximately Rs 5 Cr.
Is Adda247 planning an IPO?
Yes. Adda247’s CEO Anil Nagar has confirmed the company is targeting a public listing within the next 12 to 18 months, which puts the window in FY27 to FY28. The current restructuring — including the April 2026 layoffs, earlier faculty reductions in October-November 2025, and the CUET vertical shutdown — is explicitly designed to improve the company’s financial profile ahead of the listing. Adda247 also conducted an ESOP buyback for over 130 employees as part of its IPO preparation.
What does Adda247 do and who are its investors?
Adda247 is a Gurugram-based multilingual test preparation platform founded in 2016 by Anil Nagar and Saurabh Bansal. It covers more than 500 competitive examinations including banking, SSC, railways, UPSC, NEET, CUET, and government job tests, primarily for Hindi-speaking students in Tier 2 and Tier 3 Indian cities. In FY25, CEO Nagar stated revenue of approximately Rs 240 Cr with losses of about Rs 70 Cr, with test preparation accounting for 75% of revenue. The company has raised approximately $67 Mn from investors including Google, WestBridge Capital, and InfoEdge.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. References to Adda247’s planned IPO are based on publicly available management statements and should not be relied upon as a commitment to any public offering. Please consult a SEBI-registered financial advisor before making investment decisions.
