What’s Behind Adda247’s Fresh Round of Layoffs Before Its Market Debut? Read Here

Adda247’s latest layoffs have highlighted the continued struggle within India’s edtech sector. The edtech firm has removed over 200 employees from different teams amid efforts to reduce costs and streamline operations.

The layoffs affected departments linked to product development, content, design and exam preparation categories. Employees associated with government exam coaching, including civil services and judiciary-focused programmes, also faced exits during the process.

Several staff members said the layoffs took place at the company’s Gurugram office on April 30. According to employees, management held one-on-one meetings with affected workers throughout the day. Some employees claimed they received little prior indication about the scale of the move.

For many workers, the timing came as a shock because the company has continued to publicly speak about growth plans and future expansion. However, people familiar with the matter said the firm has been trying to streamline operations before its expected stock market debut in the coming months.

Why Adda247 Layoffs Happen?

Sources linked to the company said Adda247 wants to reduce operational costs and improve financial efficiency ahead of a possible Initial Public Offering (IPO). The company has reportedly been focusing on lowering losses while strengthening core revenue segments.

Employees also pointed to slower momentum in some business categories. Certain online verticals reportedly struggled to maintain growth, especially in highly competitive exam preparation spaces where several platforms now compete for the same pool of students.

Some staff members claimed the company recently reduced focus on selected categories that were not generating expected returns. The Hindi-language Common University Entrance Test (CUET) division reportedly saw major changes, which eventually led to job losses within that team.

Workers affected by the layoffs described different explanations from management depending on seniority levels. Junior employees were allegedly told performance concerns influenced decisions, while senior professionals heard that restructuring and category shutdowns formed part of a broader cost-cutting strategy.

Despite the difficult situation, the company maintained that the changes were part of a routine process aimed at improving execution and aligning teams more effectively with business goals. It said the restructuring would help maintain agility as the platform continues to scale operations.

IPO Preparation Plans

The development arrives at a crucial time for the company because Adda247 has been preparing internally for a public listing within the next 12 to 18 months. Market observers believe several start-ups now want to demonstrate financial discipline before approaching public investors.

Founder and Chief Executive Officer Anil Nagar recently shared that the company recorded revenue of nearly ₹240 crore during FY25, while losses stood at around ₹70 crore. He also stated that the business expects revenue growth to continue in FY26 as losses gradually decline.

According to the company’s leadership, test preparation remains the largest contributor to revenue, accounting for nearly three-fourths of the business. Skilling programmes and CUET-related offerings contribute smaller shares to the overall earnings mix.

However, former employees claimed cost pressures have remained visible internally for months. Some said the company had already reduced teaching staff and faculty roles late last year before shifting certain educators to freelance or contract-based arrangements.

At least a few affected employees also claimed they were still waiting for financial settlements after leaving the organisation. The issue added to concerns among workers already dealing with sudden job uncertainty and relocation-related stress.