Edtech startup Adda 247 focusing on government test preparation is in advanced stage discussions to secure $20 million from a new and existing investor According to two sources familiar with the deal.
Adda247 was on the lookout for a fresh round. The Gurugram-based company was also in negotiations with edtech giant Unacademy about a possible acquisition. However, the agreement has fallen through for reasons unknown.
“Westbridge is in late-stage conversations to lead the fresh round while existing investor Info Edge has already committed a significant chunk,” said one of the sources on the condition of anonymity. “The terms of the deal have been almost sealed and the round may materialise in a few weeks from now.”
Adda247 has already raised $10 million in risk capital, including a $6 million Series B round led by Info Edge in November 2019. This is Westbridge’s second large investment in an edtech business in India this year. Vedantu’s Series E round was recently funded by the venture capital company.
Adda247, founded by Anil Nagar and Saurabh Bansal, is a test prep portal for different government examinations like as railways, banking, SSC, and public sector employment at the tier II and tier III levels. In addition to its primary offering, it is attempting to address the K-12, JEE and NEET, and GATE segments.
According to the Adda247 app, it is aimed at learners outside of major cities and offers classes in ten languages, including Tamil, Telugu, Malayalam, Bengali, and Odia. While Adda247 competes with all of the biggest edtech platforms specialising in government exam preparation, its main competitors are Testbook and Pariksha.