Key Highlights
India has seen the launch of 4,450 edtech startups with 1,150 shutting shops between 2014 to 2019
India has 194 funded edtech startups, with 35 being acquired
BYJU’s stood as the the top-funded edtech startup in India for five years straight (2015-2019)
The Indian edtech startups recorded an investment of $433 Mn in 2019, taking the total funds raised by the startups to $1.8 Bn, reveals DataLabs’ recently released “The Future Of India’s $2 Bn Edtech Opportunity” report.
Going beyond supporting school curriculum and helping candidates prepare for tests, edtech today has spread its wings far and wide. From K-12 and test preparation to skilling and learning management systems, edtech startups have branched out to cater to various submarkets.
This has a significant impact as the otherwise fragmented, and conventional education system has failed to address many crucial questions, which have a direct effect on the economy. From skill development and reskilling to upskilling, university-level courses and even B2B models, edtech has shown the potential to disrupt the entire value chain.
In terms of skilling, as per DataLabs analysis, more than half of India’s workers will require reskilling to meet the talent demands of industrial revolution 4.0 by 2022. The emerging skill requirements are primarily focused on areas such as technology-led design and programming, complex problem solving, reasoning, ideation, emotional intelligence, critical thinking, and analysis.
With the working-age population in India making up 67% of the total population (1.3 Bn), the market offers great opportunities for reskilling, skill development and upskilling. The right tech skill sets and certification are the two most important parameters for tech employment. It is to be noted here that the demand side of edtech is robust, thanks to the rising unemployment in India.
Factors such as the deep penetration of the internet and the rampant use of smartphones and other electronic devices have spiked the online content consumption in India. This has also, in turn, impacted India’s addressable market for edtech products and services. The report also noted that it is the youth of the country who is driving the adoption of the edtech products and services in India.
These two factors have exponentially increased the capitalisation opportunity in Indian edtech. This is seen in the business done by edtech startups in the previous fiscal. In FY 2018, the gross merchandise value of edtech startups was above $120 Mn was a surge of 48% compared to the previous year. This indicates that edtech startups are poised for bigger growth as the market conditions and reception for the products and services are likely to increase.
“The growing expenditure of Indians towards education along with the cost-effective nature of online education are two of the most important factors behind the increased investor confidence in edtech startups in India,” said DataLabs spokesperson.
The Report Also Highlighted The Following Trends
Online test preparation is one of the most prominent and aggressively-growing segments in the Indian edtech landscape
Flexibility, convenience and low cost are the factors gradually making the prospect of higher education online more appealing for students and professionals alike
Majority of edtech startups today offer products in a rich multimedia package apart from pictures or text. Given the fact that the share of video consumption to the total internet traffic is slated to rise from 58% (2017) to 77% (2022), the traction of the online educational content in India is also poised to grow exponentially in the coming future.
In 2019, 16.2% of the total investors who participated in edtech startup funding deals were corporates, while 41% were VC firms
DataLabs has analysed the future of educational technology and has recorded the growth prospects, the market and consumer-related insights from the booming Indian edtech market in its latest report — The Future Of India’s $2 Bn Edtech Opportunity Report 2020.
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