Google-backed edtech startup Adda247 on Tuesday said that it has acquired Ekagrata Eduserv, a chartered accountancy (CA) test preparation firm.
This acquisition allows Adda247 to enter the CA test preparation market for the first time.
“This acquisition is expected to significantly expand Adda247’s user base, which currently has 40 million monthly users,” the company said in a statement, without disclosing the deal’s financial details.
This acquisition adds Ekagrata Eduserv to Adda247’s growing list of companies. Previously, in 2021, they acquired StudyIQ, a platform focused on UPSC exam prep. More recently, in 2023, they bought Veeksha, a company developing learning modules that use augmented and virtual reality.
“We’ve been planning to launch the CA category, and in Ekagrata, we found the perfect team to lead and grow this segment. Over the next several years, we aim to invest substantially in this category and establish a leadership position in the CA test preparation market,” said Adda247 CEO Anil Nagar.
Adda247, founded in 2016 by Anil Nagar and Saurabh Bansal, caters to students aiming for careers in public sector banks, government departments, and the railways. Their comprehensive selection of exam preparation resources includes live online classes, pre-recorded video courses, practice tests, e-books, and study materials for different exams.
The edtech startup offers courses in 12 regional languages and is planning to expand to even more states and languages this year, reaching two or three new regions.
To strengthen their new CA test prep section, the founders and employees of Ekagrata Eduserv will join Adda247. Ekagrata’s founder, Anshul Agrawal, will take the lead as director of the CA category at Adda247.
“Joining forces with Adda247 presents an exciting opportunity to scale our impact in the CA test preparation space,” said Agrawal.
The Edtech firm boasts an impressive user base with roughly one million paid users as of May 2024. They aim to grow this number to 1.7 million by year’s end.
Financially, the company is on an upward trajectory. Headquartered in Gurgaon, the startup reported a revenue of Rs 243.39 crore for the 2023-24 financial year. This represents a significant 88% increase compared to the previous year. There’s positive news on the profitability front as well. The firm reduced its net loss by a substantial 66%, bringing it down to Rs 101 crore from Rs 296 crore in the same period.
In terms of funding, the startup secured $35 million in its latest funding round led by WestBridge Capital in 2022. This round also saw participation from tech giant Google, alongside existing investors like Info Edge Ventures and Asha Impact. Adda247’s total funding reaches a healthy $63 million with this latest infusion.
