Google-backed edtech firm Adda247 has reported an 88.5% increase in its revenue, reaching Rs 115 crore in FY23, up from Rs 61 crore in FY22.
Despite this notable revenue surge, the company's losses have also escalated, showing a fourfold increase to Rs 110 crore in FY23 compared to Rs 28 crore in the previous fiscal year, Entrackr reports.
Factors behind increased expenditure
The substantial rise in losses is attributed to increased expenses in various sectors. Employee benefits, which form 37% of the total expenditure, reached Rs 88 crore in FY23, including Rs 15 crore as ESOP cost.
Advertising costs and other overheads also saw significant increases. The overall expenditure of Adda247 skyrocketed to Rs 239 crore in FY23 from Rs 92 crore in FY22.
Revenue sources and operational focus
A major portion of Adda247's revenue, about 83%, comes from the sale of online courses, e-books, and test series, amounting to Rs 96 crore in FY23.
The company, founded by Anil Nagar and Saurabh Bansal, primarily focuses on test preparation for public sector exams and is expanding into K-12, JEE, and GATE segments. It boasts 50 million monthly active users and over 2 million paid users.
Adda247, which has raised over $55 million in funding to date, including a $35 million round led by WestBridge Capital and featuring Google as a new investor, faces a critical phase. The company's current assets are substantial, with Rs 289 crore in FY23, including Rs 277 crore in cash and bank balances.
However, the firm's strategy for managing its growing losses while maintaining revenue growth remains a key focus for the future.
Last year in October, the company reportedly laid off 250-300 employees across various departments. The layoffs came after it made an investment in Veeksha, a startup that specializes in creating immersive 3D content for Mathematics and Science subjects.
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