Adda247 Rewards Employees with Substantial ESOP Buyback

Google-backed educational technology pioneer Adda247 has unveiled its inaugural employee stock ownership plan (ESOP) buyback program, benefiting over 130 dedicated team members across diverse roles and responsibilities. This strategic move follows the company’s recent acquisition of Ekagrata Eduserv, a prominent platform for chartered accountancy exam preparation, for an undisclosed sum.

Paving the Way for Public Offering

Adda247’s ESOP buyback is a significant step towards its planned initial public offering (IPO) in 2027. The buyback price is a remarkable forty times the original purchase price, underscoring the company’s robust growth and valuation.

Expanding Horizons

Founded in 2016 by visionary entrepreneurs Anil Nagar and Saurabh Bansal, Adda247 has rapidly expanded its offerings beyond its core competency in live online classes, on-demand video courses, practice exams, and digital textbooks. The company has successfully ventured into the skill development, upskilling, and higher education domains.

With a staggering 40 million monthly users and a substantial enrollment of two million students in premium courses, Adda247 has solidified its position as a leading educational technology platform.

Industry-Wide Trend

Adda247’s ESOP buyback aligns with a broader industry trend. Last week, food delivery and rapid commerce giant Swiggy announced a substantial ESOP liquidity program valued at $65 million. Other notable companies participating in ESOP buybacks this year include Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, and Pocket FM.

According to TheKredible, a prominent startup data intelligence platform, Indian startups collectively executed approximately $802 million worth of ESOP buybacks in 2023. This figure represents a significant increase from the $440 million and $200 million recorded in 2021 and 2022, respectively.