Edtech startup offers 40x returns to over 130 employees, showcasing financial health and commitment to talent retention ahead of planned 2026 IPO
Introduction:
In a significant move that underscores its growth trajectory and commitment to employee welfare, Adda247, a leading multilingual learning platform, has announced its first-ever Employee Stock Ownership Plan (ESOP) buyback. The initiative, which will benefit more than 130 employees across various roles and functions, comes as the company gears up for its planned Initial Public Offering (IPO) in 2026.
Founded in 2016 by Anil Nagar and Saurabh Bansal, Adda247 has rapidly established itself as a key player in India’s burgeoning edtech sector. The platform aims to make quality education accessible and affordable for learners across India, with a particular focus on tier-3 and tier-4 cities and rural areas.
Buyback Details and Significance
The ESOP buyback program represents a significant milestone for Adda247, offering participating employees an average return of 40 times their initial purchase price. This substantial return not only rewards employees for their contributions but also signals the company’s strong financial position and growth prospects.
Anil Nagar, Founder and CEO of Adda247, emphasized the importance of this initiative, stating, “This ESOP buyback represents a pivotal moment in Adda247’s evolution. It’s a testament to our unwavering commitment to empowering our employees and fostering a culture of shared success. Our employees are the strength of Adda247, and this initiative demonstrates our appreciation for their dedication and hard work and the wealth they can create.”
The buyback program is open to employees across various roles and functions, reflecting the company’s inclusive approach to wealth creation. Nagar added a personal touch to the announcement, noting, “As we celebrate this milestone, we are inspired by the diverse goals of our employees. From fulfilling long-held dreams to clearing loans, and yes, even purchasing the latest iPhone 15 Pro Max, we are proud to support their endeavors!”
Financial Performance and Growth Trajectory
Adda247’s decision to conduct an ESOP buyback is backed by impressive financial performance. The company reported a revenue of ₹243.39 crore in FY24, marking a substantial 88% year-on-year increase from ₹129.65 crore in FY23. More notably, Adda247 has significantly reduced its net loss by 66% to ₹101 crore, down from ₹296 crore in FY23.
These financial improvements demonstrate Adda247’s path towards profitability, a crucial factor as the company prepares for its IPO. The edtech startup aims to further increase its paid user base from the current 1 million to 1.7 million by the end of this year, indicating strong growth potential.
Expansion and Market Position
Adda247’s recent acquisition of Ekagrata Eduserv Pvt. Ltd., a leading player in the Chartered Accountancy (CA) test preparation market, marks its entry into the ₹800 crore CA test prep segment. This strategic move diversifies Adda247’s offerings and strengthens its position in the competitive edtech landscape.
The company’s core offerings include live online classes, on-demand video courses, mock tests, ebooks, and physical books, all tailored for specific exam preparations. Adda247 provides courses in 12 Indian languages and leverages innovative technology suited for low-bandwidth areas, making it accessible to a wide range of learners.
With over 40 million monthly users and 2 million students enrolled in its premium courses, Adda247 has established a strong market presence. The platform’s focus on government job entrance exams and its expansion into skilling, up-skilling, and higher education sectors position it well for sustained growth.
Implications for the Indian Startup Ecosystem
Adda247’s ESOP buyback is part of a growing trend in the Indian startup ecosystem. In recent months, companies like Swiggy, Urban Company, Meesho, The Sleep Company, and Pocket FM have also conducted ESOP buybacks, highlighting the maturing nature of India’s startup landscape.
These buybacks serve multiple purposes:
1. Talent retention: They incentivize employees to stay with the company long-term.
2. Wealth creation: They provide tangible financial benefits to employees, beyond salaries.
3. Confidence signal: They indicate the company’s financial health and growth prospects to investors and the market.
According to startup data intelligence platform TheKredible, the total ESOP buyback by Indian startups stood at nearly $802 million in 2023, up from $440 million in 2021 and $200 million in 2022. This trend reflects the growing focus on employee welfare and the increasing ability of Indian startups to generate wealth for their workforce.
Conclusion
Adda247’s maiden ESOP buyback marks a significant milestone in the company’s journey. As it prepares for its 2026 IPO, this move demonstrates financial strength, commitment to employee welfare, and confidence in future growth prospects. For the broader Indian startup ecosystem, it reinforces the trend of startups creating tangible value for their employees and sets a positive precedent for others to follow.
As Adda247 continues to expand its offerings and user base, its success story serves as an inspiration for other edtech startups aiming to make quality education accessible across India. With its strong financial performance, strategic acquisitions, and employee-centric policies, Adda247 is well-positioned to play a pivotal role in shaping the future of education technology in India.
