Edtech startup Adda247 reported a loss of INR 157.8 crore ($21.2 million) in the financial year 2021-22, up more than 10 times from the INR 15.18 crore loss recorded in the previous fiscal year. The platform’s revenue from operations rose to INR 61.5 crore, up 1.6 times from INR 36.5 crore in FY21. However, total expenses surged more than fourfold to INR 221.4 crore in FY22, up from INR 52.2 crore in FY21, mainly due to rising finance costs and employee benefits expenses.
The company’s revenue largely comes from contracts with customers and by offering online courses and test prep series, while it also accrued revenue from the sale of books, ebooks, and other preparation materials. Adda247 is backed by investors including WestBridge Capital and JM Financial and claims to have more than two million paid users on its platform. Many edtech startups have been struggling to turn a profit despite the growing demand for online education during the pandemic. This is partly due to the high costs associated with developing and maintaining technology platforms, as well as marketing and customer acquisition expenses. Additionally, the return of students to physical classrooms has impacted the demand for online learning, which has added to the challenges faced by edtech companies. However, some of the larger players in the industry, such as BYJU’S, Unacademy, and Vedantu, have been able to secure significant funding and expand their offerings, which could help them sustain their growth in the long run.