Adda247 is looking for investors after failed acquisition talks with Unacademy

Adda247, a test prep platform for government, rail and public agencies, is in talks to raise a new round of funding from existing and new investors after the Unacademy takeover talks failed, according to two sources reported by the Development.

The new round of funding would come after a gap of nearly two years for the Gurugram-based company, which raised $ 6 million in its Series B in November 2020.

“Existing investors, including Info Edge, are in late-stage discussions to lead a $ 10 million round at Adda247. The draft of the deal is almost ready and could soon become a reality, ”said one of the sources on condition of anonymity.

The person added that Info Edge, now a steadfast investor after its massive success with Zomato and Policybazaar, would lead the new round.

Sources emphasized that talks with existing investors began after Adda247’s takeover talks with Unacademy failed. According to a report of The CapTable, the two companies had been in advanced talks about a deal since June.

“Differences in evaluation were a major reason for the failure of the talks. Adda247 was targeting over $ 40 million in the acquisition. However, the Unacademy was not convinced and looked at a lower amount, “said the second source, who also refused to be named.

By November 2019, Adda247 had raised $ 10 million and was valued at around $ 25-30 million. Trickypedia was unable to independently verify the reason for the impact of the deal with Unacademy.

answer to Trickypedia’s When asked, the co-founder of Adda247, Anil Nagar, denied this development and said: “This is all wrong.” Requests sent to Unacademy and Info Edge late Monday caused no reaction until the story was published. We’ll update the story in case they do.

While the Indian startup ecosystem has experienced massive consolidation in the edtech sector in the current calendar year, this is one of the rare cases in which the acquisition talks have failed even after several months of involvement.

Last year, a similar deal between Byjus and the dispute edtech platform Doubtnut was canceled. Trickypedia was all about the conversations and how they had failed. reported here and Here.

Founded in 2010 by Nagar and Saurabh Bansal, Adda247 provides an online test prep platform that offers videos, live lectures, e-books for UPSC, IIT, SSC, banking, insurance, apprenticeship, railways, defense and government entrance exams. While the company has yet to disclose its FY21 financial statements, it had FY20 sales of Rs 47 billion with a loss of nearly Rs 8 billion.

According to the company’s website, it operates in more than 450 coaching centers in India and offers live and on-demand courses. The company competes with Matrix and Iron Pillar-backed Testbook and Pariksha, among others. Pariksha raised $ 2 million in a pre-Series A round led by the Bharat Inclusion Seed Fund.

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