India To Become The Edtech Capital Of The World

Overview – Indian EdTech Industry
India’s EdTech industry was valued at $ 750 million in 2020 and is projected to reach $ 4 billion at a CAGR of 39.77% by 2025. This growth is being driven by the increasing demand for non-academic courses from Tier II and III cities and the need for personalization in the EdTech space. Of the projected market value of $ 4 billion, $ 1.5 billion will be focused on K-12 (kindergarten through 12th grade), post-school elementary and preparatory courses.

Key trends

EdTech funding focuses on start-ups

Indian EdTech startups raised more than $ 1.43 billion in over 100 deals in 2020. The disruptions from the COVID-19 pandemic and subsequent lockdowns forced both parents and educational institutions to implement technology-enabled learning solutions, making EdTech the most heavily funded sector in the country. Of the total funds raised, Byjus leads with 57%, followed by Unacademy (10.5%) and Vedantu (9.5%).

Since 2020, four EdTech start-ups in India have turned into unicorns (Unacademy, UpGrad as well as Eruditus and Vedantu) and one into a Dekacorn (Byju’s). A unicorn is a company valued at over $ 1 billion and a Dekacorn is valued at> $ 10 billion.

Gamification and the rise of edutainment

Gamification has grown in popularity among EdTech startups. Companies like Toppr, PlayAblo, Cuemath, and Byju’s have introduced learning through games and puzzles that make it easier and more fun for students to understand concepts. Likewise, companies like Kiddopia, Kutuki Kids Learning, TinyTapps, Enguru, and Lido Learning have taken steps to make education more engaging with interactive videos and music. For example, according to one study, over 70% of students said gamified courses are more motivating than traditional ones.

A hybrid EdTech industry

According to experts, a hybrid-channel approach is expected from the players in the EdTech segment in the future. Online gamers try to establish offline touchpoints for students. For example, EdTech Decacorn Byju’s tested the Byju’s Learning Center, a new hybrid model that allows students to visit offline educational centers for class.

Key driver

Internet penetration growth exponentially in India

According to the IAMAI Kantar ICUBE 2020 report, India had 622 million active internet users in 2020. That number is projected to grow 45% to 900 million by 2025 due to higher adoption rates in rural India. Small cities in India account for two in five active internet users in the country. The urban population comprises 67% of active internet users.

According to the Annual Status of Education Report (ASER) 2020, smartphone ownership among government student families rose from 30% in 2018 to 56% in 2020, while smartphone ownership among private student families rose from 50% to 74%.

Government initiatives are driving the Indian EdTech industry forward

The Indian EdTech industry is expected to become more politically friendly in the coming years due to increasing government interest. The National Education Policy 2020 emphasized the importance of the use of technology in educational solutions and supported the creation of learning content in regional languages, giving it a high priority.

The K-12 category has potential for future growth

EdTech industry in India is growing rapidly, with keen interest in the K-12 segment as COVID-19 lockdowns have disrupted educational activities. Indian EdTech firms have raised $ 5.77 billion in funding so far in 2021, according to Tracxn, a data analytics company. Of the total, $ 99 million was raised by K-12 education specialists. Since 2018, more than 4,800 K-12 EdTech start-ups have been founded worldwide, 1,782 of them in India alone. They offer courses in subscription package form for a range of subjects for each class.

The introduction of advanced technologies like artificial intelligence (AI), machine learning (ML), AR and VR will not replace teachers in the classroom, but will equip teachers with valuable tools and platforms to ensure effective learning in the classroom.

Recent activity

Accompaniment

activity

Jan – October 2021

Teaching mint

Teachmint, a start-up helping teachers and institutions create their own virtual classrooms, has raised $ 78 million in Series B funding. The new round of financing values ​​the company at $ 500 million.

August 2021

Byyus

Byju has acquired three large companies:

  • Epic, an online library for children under the age of 12, for $ 500 million.
  • Singapore-based Great Learning, online vocational and higher education company, for $ 600 million.
  • Toppr, an after-school learning platform, for $ 150 million.

June 2021

Class plus

The EdTech start-up Classplus has raised 65 million US dollars in a Series C round led by Tiger Global Management.

April 2021

UpGrad

UpGrad is an online university company. It offers over 100 courses in collaboration with global universities. It raised $ 120 million from Temasek.

April 2021

doubt

Doubtnut, a K-12 EdTech platform, raised approximately $ 30 million from SIG Global and Lupa Systems. Existing investors Sequoia Capital India, Omidyar Network India and Waterbridge Ventures also took part in the Series B round.

Major players in the Indian EdTech industry

Along the road…
Investors are interested in EdTech startups because they adapt quickly to advanced technologies and offer a high return on investment. The demand for EdTech companies among students and parents is increasing as the post-pandemic situation further increases the need for distance learning. The Government of India (GOI) has announced various plans and systematic changes to improve the EdTech industry and improve the distance learning experience for students. For example, in May 2020, the Government of India announced PM e-VIDYA, which will allow the country’s top 100 universities to launch online courses. Hence, National Education Policy 2020, Access to Education and Teachers, Demand for Continuing Education and Distance Learning will accelerate the growth of India’s EdTech industry.

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