Google-Backed Edtech Startup Adda247 Cuts Around 300 Jobs Amid Funding Crunch: Report

India's Adda247 has reportedly eliminated hundreds of jobs amid a funding winter that has affected the business of multiple edtech startups in recent months.

Between 100 and 150 employees at the firm's StudyIQ platform, which focuses on competitive exams, were affected by the cuts, Entrackr reported, citing sources. Major departments such as sales, content and faculty also saw layoffs of around 150 employees.

Adda247 acquired StudyIQ in December 2021.

"The downsizing was done to extend the runway as funding tap has dried up for the edtech companies and the investment environment is unlikely to improve for the sector. The exercise was abrupt and there was no townhall or any communication from the human resources department," the report said.

The staff were allegedly asked to resign without prior notice. Adda247 did not immediately respond to International Business Times' request for comment.

The startup secured $35 million last year in a funding round led by WestBridge Capital and joined by search giant Google.

The company had said it was looking to use the fresh funding "to enhance its tech and product profile, expand its student counseling team, and hire for some key leadership roles," adding its goal was "to go deeper into the vernacular test preparation category."

The layoffs came a year after Adda247 announced "unlimited sick leaves" and "recharge leaves" policies – the latter allowing employees to take a leave after meeting a rigorous work deadline.

Anil Nagar, CEO of Adda247, said at the time the startup wanted to "create an environment where employees feel valued, supported and cared for" and establish a "healthy and inclusive culture for all employees."

Adda247 is the latest Indian edtech company to implement layoffs as the industry has been hit hard by a funding crunch.

Skill-Lync laid off around 20% of its workforce in July as part of its cost-cutting measures. Around 225 employees were affected. Unicorn Byju's, which was considered India's highest-valued startup, reportedly laid off between 500 and 1,000 employees in June across different departments. Some workers in the content team were reportedly asked to voluntarily resign.

The tech industry continues to see layoffs, albeit at a slower pace than in the first half of 2023. More than 242,400 tech employees have been laid off so far this year, according to layoffs tracker layoffs.fyi.