Publicly-listed pure play internet entity Info Edge, on Wednesday announced an investment of around Rs 80 crore in vernacular test preparation platform, Adda 247.
“The board of directors has approved entering into agreement to invest about Rs 80 crore in Metis Eduventures Pvt. Ltd (Adda247) as primary acquisition of shares,” the company said in a regulatory filing on BSE.
Info Edge will acquire 14,088 Series B – compulsorily convertible preference shares having a face value of Rs 5 each. The company’s stake in Adda247 after this investment will stand at 23.01% on a fully converted and diluted basis.
This is Info Edge’s fourth investment in Adda247 since 2019.
The Naukri-parent invested Rs 7.06 crore for a 7.06 percent stake in the company in October 2019, followed by an additional investment of Rs 21 crore in November 2019 as part of a Series B round, increasing its stake to 17%. In November 2021, the company further infused Rs 41.2 crore in the edtech startup.
According to the statement, Adda247 is an associate company of Info Edge and this is a related party transaction. Promoters have no interest in the investment.
Info Edge’s shares traded at Rs 4,075.10 apiece, up 0.25 percent on BSE in last-hour trade on Wednesday.
Incorporated in 2010 by Anil Nagar and Saurabh Bansal, Adda247 is a test preparation platform catering to students from tier-II and III cities, with educational services and assistance to those preparing for exams on web or mobile application. The startup also has an offline offering. Backed by other marquee investors such as Westbridge Capital and JM Financial, the platform provides online courses for government exams including banking, Railways, defence and teaching; JEE/NEET entrances; engineering exams and school curriculums from grades I-XII.
The platform claims to have over 15 million monthly active users and more than 9 million YouTube subscribers, on its website.
According to the statement by Info Edge, Adda247 reported a turnover of Rs 64 crore in FY22, compared to Rs 46.7 crore in FY21, a 27% rise year-on-year.
The investment in Adda247 is the second bet by Info Edge in an associate company this month. Earlier on 2 September, the company, via subsidiary Allcheckdeals, announced an investment of Rs 90 crore in 4B Networks Pvt Ltd-operated Broker Network. Post this transaction, Allcheckdeals holds 59.80% stake in the proptech startup.
