“The board of directors has approved entering into agreement to invest about ₹80 crore in Metis Eduventures Pvt. Ltd (Adda247) as primary acquisition of shares," the company said in a filing to BSE.
Info Edge will acquire 14,088 Series B – compulsorily convertible preference shares having a face value of ₹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 had invested ₹7.06 crore for a 7.06% stake in the company in October 2019, followed by an additional investment of ₹21 crore in November 2019 as part of a Series B round, increasing its stake to 17%. In November 2021, the company infused ₹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 ₹4,075.10 apiece, up 0.25% 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 ₹64 crore in FY22 compared with ₹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. On 2 September, the company, via subsidiary Allcheckdeals, had announced an investment of ₹90 crore in 4B Networks Pvt Ltd-operated Broker Network. Post this transaction, Allcheckdeals holds 59.80% stake in the proptech startup
