Adda247, the Google-backed edtech major, has reportedly laid off approximately 20% of its workforce as it seeks to streamline operations ahead of a planned Initial Public Offering (IPO).
The downsizing, which has affected between 250 to 300 employees, marks a significant pivot toward profitability and operational sustainability in an increasingly competitive Indian edtech market.
Adda247 Restructuring for Profitability
The layoffs have primarily impacted the company’s sales and content divisions.
According to sources familiar with the matter, the restructuring is designed to eliminate redundancies and optimize costs as the company targets a public listing within the next 24 to 36 months.
Adda247’s management noted that the decision follows an internal audit of departmental performance.
By reducing its headcount, the firm aims to improve its EBITDA margins and demonstrate a clearer path to profitability for potential institutional investors.
This move aligns with a broader industry trend where edtech firms are moving away from aggressive “growth-at-all-costs” models in favor of sustainable unit economics.
Read also: GM Restructures IT Division to Focus on AI-Native Engineers
Vertical Integration and New Acquisitions
Despite the job cuts, Adda247 remains active in expanding its market share through targeted acquisitions.
The company recently integrated StudyIQ, a popular UPSC preparation platform, and has been investing heavily in its vernacular language offerings to capture the “Bharat” market.
The firm currently serves over 50 million monthly active users and offers courses in more than 10 regional languages.
By thinning its corporate layer, Adda247 intends to reinvest saved capital into its high-growth verticals and AI-driven personalized learning tools.
Market Context and Edtech Outlook
Adda247 joins a growing list of Indian unicorns, including Unacademy and BYJU’S, that have implemented significant workforce reductions over the past year.
Analysts suggest that for firms like Adda247—which counts Google, WestBridge Capital, and Info Edge among its backers—tightening fiscal discipline is a mandatory prerequisite for a successful IPO in a cautious global market.
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About the Author
Sahiba Sharma
Contributing Writer