Ahead of its initial public offering (IPO), the Google and WestBridge-backed company is focusing on achieving profitability, strengthening its core test prep business, and diversifying revenue streams.
Speaking exclusively with Business Standard, Nagar said, “Before the IPO, we want to be fully profitable, and that is one of the priorities. This year, we will be very close to that. Secondly, skilling is going to be the focus for us (in addition to the test prep business)... Our main focus is to create a strong organisation, which is highly diversified, and structurally ready to go for IPO.”
Nagar said even as the company aims for a D-Street debut, it has not yet zeroed in on the valuation and other financial metrics.
While the company’s revenue for the financial year 2024-25 (FY25) stood at nearly ₹240 crore, its losses were around ₹70 crore. “The test preparation segment comprises nearly 75 per cent of the revenue, skilling (which started last year) currently stands at around 15 per cent, and the Common University Entrance Test (CUET) is nearly 10 per cent,” Nagar added.
On revenue expectations for FY26, Nagar said that in comparison to the previous year, revenue is on an upward trajectory and losses have also come down.
The Gurugram-headquartered firm, which fully transitioned to an online education platform in 2016, had raised $1 million from Vedanta in a seed round that year. In 2019, the company raised $4.45 million from Info Edge and Asha Ventures in a pre-Series A round. In 2021, Info Edge and Asha Ventures, along with WestBridge Capital, invested another $20 million in a Series A round. The following year, in 2022, Google, WestBridge Capital, Info Edge, and Asha Ventures invested $35 million in a Series B round.
The edtech platform, which delivers educational content in Hindi, English, and 10 other regional languages, has a monthly active user base of more than 40 million. At the company, almost 85 per cent of learners are from Tier-II and Tier-III cities, while the remaining smaller portion comes from metropolitan cities.
On the acquisition front, Nagar said the company has made two significant acquisitions to date: StudyIQ and PrepInsta. In 2021, Adda acquired Union Public Service Commission (UPSC)-focused edtech platform StudyIQ Education for around $20 million in a cash-and-stock deal. Three years later, in 2024, it acquired PrepInsta, a placement preparation platform.
Commenting on the areas where the company could explore potential acquisitions, possibly using IPO proceeds, Nagar said, “Things are changing fast and new technologies like AI are coming and evolving. Around that, some things (acquisitions) can happen which will probably take time for us to build or we would need to create the whole ecosystem. So, probably, that will be one area where we will be open to exploring. Otherwise, in the broader spectrum, skilling is one area where I might consider an acquisition. But broadly, I am a bit conservative about acquiring companies.”
 "Anil Nagar, the company's founder and chief executive officer")