INDIA'S $29 BN+ EDTECH OPPORTUNITY
DECODING MARKET LANDSCAPE & TRENDS REPORT, 2023
India's Digital Economy: An Overview
How Does India’s Edtech Market Stand Against China And
The US
Funding (2014-2022)
5 Year Funding CAGR
SOURCE: INC42, MULTIPLE SECONDARY SOURCES
The $29 Bn Edtech Opportunity In India
India Expected To Have 100 Mn+ Paid Edtech Users By 2030
Paid users expected to grow at 26.85% CAGR from 2022-2030
The Fast-Growing Edtech Sub-Sectors In India
India’s Edtech Landscape
India’s Edtech Landscape: Key Players
India’s Edtech Unicorns
India’s Edtech Soonicorns
Rise And Fall Of Edtech Funding [2014-2022]
Upto 2019 (Pre-Covid)
Total Funding
$1.6 Bn+
307
2020 to 2021 (During Covid)
Total Funding
2022 - Present (Post Covid)
Total Funding
$2.4 Bn+
Funding Winter Hits Edtech Sector In 2022, Funding Down
Deal count in edtech sector declined by 42% YOY In 2022
By 49% YoY
Q1 2022 Marked Beginning Of Funding Winter In Edtech
From its highest value i.e. $1.96 Bn in Q4 2021, the total funding amount declined by 95% in Q4 2022
Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022
Average Ticket Size For Edtech Funding Drops To $27 Mn In 2022
The decline in funding for late-stage rounds resulted in a decrease in the average ticket size for edtech investments in 2022
Edtech
Mega Deals Fell 57% In 2022
Edtech startups start to bleed with reopening of the offline education segment leading investors to focus on profitability metrics for funding
Funding At Late Stage Showed Highest YoY Decline For Edtech Startups In 2022
SOURCE: INC42
K12
Still The Most Funded Sub Sector Within Edtech In India
Online Certification startups gained more investor interest in 2022 with 13.1% YoY rise in funding raised
SOURCE: INC42
Skill Development Dominates Deal Count In 2022
Edtech Funding In Delhi NCR, Mumbai And Bengaluru Dropped By 49% YOY In 2022
Other emerging hubs funding also declined by 67% YOY in 2022
DELHI NCR, MUMBAI, BENGALURU
DELHI NCR, MUMBAI, BENGALURU
Delhi NCR, Mumbai And Bengaluru Secured More Than 80% Edtech Funding Deals In 2022
Delhi NCR, Mumbai And Bengaluru Secured More Than 80% Edtech Funding Deals In 2022 2021 2022
SOURCE: INC42
Unique
Sequoia capital emerged as the most active edtech investor in India
Most Active Edtech Investors In India [2014-2022]
BYJU’S, Unacademy, Scaler Academy
Unacademy, Classplus, Flipclass
Newton School, Unacademy, Quizizz
Vedantu, Doubtnut, Uolo
BYJU’S, Unacademy, Vedantu
Geekster, Eduncle, Edvizo
Filo, Teachmint, Kafka Academy
Seekho, Pariksha, Little Leap
Vedantu, PhysicsWallah, LEAD School
SOURCE:
Teachmint, Yellow Class, Blue Learn
Edtech Unicorns Spend Big On M&As
Edtech Sector Bleeds With Highest Layoffs Amid Falling Revenues
Two out of every five layoffs in the Indian startup ecosystem was from an edtech startup.
Layoffs
SOURCE: INC42
Indian
Edtech Unicorns & Soonicorns Saw A 91% Uptick In Revenue In FY22
Aggregate revenue of unicorns and soonicorns increased by 91% YoY in FY22 owing to strong post-pandemic impact
Indian Edtech Unicorns & Soonicorns' Expenses Almost Doubled In FY22
In FY22, to earn INR 1, unicorns and soonicorns spent INR 3.63 on an average amid pandemicinduced aggressiveness to acquire market share
Most Valued Indian Edtechs Continued To Burn Heavily In FY22
In FY22, the aggregate loss of unicorns and soonicorns increased 89% YoY amid continued focus on growth and customer acquisition
Inside The FY22 Financials Of Indian Edtech Unicorns
Startup Revenue From Operations In FY22
$245 Mn (+87%)
$17 Mn (+133%)
$29 Mn (+845%)
$75 Mn (+77%)
$63 Mn (+67%)
$21 Mn (+80%)
Total Expenses In FY22 $710 Mn (+79%) $67 Mn (+188%) $13 Mn (+571%)
Mn (+20%) Profit Before Tax In FY22
Employee Benefit Expenses In FY22 $262 Mn (+5%) $32 Mn (+165%) $5 Mn (+4327%)
Expenses In FY22 $142 Mn (+111%)
Mn (+146%)
Mn (-180%)
Mn (+78%)
Mn (+19.5%)
Startup Revenue From Operations In FY22
$3 Mn (+993%)
$3 Mn (+118%)
$3 Mn (+9416%)
Total Expenses In FY22 $15 Mn (+1980%) $26 Mn (+181%) $3 Mn (+5130%)
Profit Before Tax In FY22
Mn (-2700%)
Mn (+3468%)
Mn (-182%)
K (+80%)
$2.9 Mn (+269%)
$96 K (NA)
SOURCE: COMPANY FILINGS, INC42 CALCULATIONS
Mn (+800%) $18 Mn (+2356%)
Mn (-1679%)
Mn (-2284%) Employee Benefit Expenses In FY22
Mn (+211%) +$936 K (+2210%)
Mn (+1883%)
Mn (+584%)
Mn (+5758%) Advertising/Promotional Expenses In FY22
Mn (+1282%)
Indian Edtech Users Customer Sentiment Survey
Only 34% People Positive About Online Education Quality
Education quality as category driver scores 4.48 out of 10
NOTE: BASED ON REVIEWS OF 2,108 EDTECH USERS
SOURCE: CLOOTRACK, INC42
Learning Experience Extremely Critical For Online Higher Education Users
Learning experience as category driver for online masters degree scores 9.29 out of 10
LEARNING EXPERIENCE
LEARNING PLATFORM COURSES OFFERED
NOTE: BASED ON REVIEWS OF 9,886 EDTECH USERS
SOURCE: CLOOTRACK, INC42
ONLINE MASTERS DRIVERS (IN POSITIVE SENTIMENT PERCENTAGE)
Mentorship Emerged As A Crucial Factor For Online Certification Course Users
Mentorship as category driver scores 7.81 out of 10
SOURCE:
MENTORSHIP CURRICULUM
Learning Experience Vs
Faculty: What Makes A Cut For Online Enterprise Course Users
Learning Experience as category driver scores 7.41 out of 10
NOTE: BASED ON REVIEWS OF 8045 EDTECH USERS
SOURCE: CLOOTRACK, INC42
Unacademy
Scores The Lowest In User App Experience
NOTE: BASED ON REVIEWS OF 11,090 EDTECH USERS
SOURCE: CLOOTRACK, INC42
PHYSICS WALLAH
Add247 Scores The Lowest In Learning Experience
NOTE: BASED ON REVIEWS OF 11,090 EDTECH USERS
SOURCE: CLOOTRACK, INC42
LEARNING EXPERIENCE (IN POSITIVE SENTIMENT PERCENTAGE)
PHYSICS WALLAH
Hybrid Learning: The Next Battleground For Edtech Giants
The First Wave (Until 2010)
Initially, edtech in India primarily focussed on B2B solutions, such as adopting smart boards and ERP software for efficient management of day-to-day educational operations
SOURCE: INC42, MULTIPLE SECONDARY SOURCES
The Second Wave (2010-2018)
Next came a shift towards B2C learning, fuelled by easy access to the internet, reduced data costs, and the rise of K-12 learning apps and online test preparation module
The Third Wave (2019-2021)
This phase deep-dived into new-age technologies such as AI/ML, deeptech and gamification. The Covid-19 pandemic served as a catalyst for the edtech sector and saw the rise of many new startups catering to the growing demand for online education.
The Fourth Wave (2022-Present)
This can be the era of hybrid learning and the consolidation of me-too edtech businesses. During this phase, edtech startups must reinvent themselves and work on their value proposition now that offline classes are in full swing.
Why Hybrid Learning Is Poised To Dominate The Edtech Sector In India
SOURCE: INC42, COLUMBIA UNIVERSITY
Data Driven Tracking Of Learning Levels
Saves Time For Both Teacher And Student
Helping Students To Be More Tech
Fatigue Of Pure Online Learning Larger Reach
Edtech Unicorn And Their Hybrid Play
Unicorn
Online Play
Online Tutoring Platform
Early Years Learning
Class 4 -12
Online Tutoring Platform
Class 6 -12
Test Preparation
Test Preparation
YouTube Channel
Educational Content In 9 Regional Languages
Mobile App
PW Skill - Upskilling platform
Online Test Preparation Platform
Acquired Active Platforms
CodeChef – Coding
WifiStudy - Online Learning
Online Tutoring Platform
Early Years Learning
Class 1 -12
Test Preparation
Offline Play
Hybrid learning centers
Acquisition of offline test preparation platform Deeksha
PW Vidyapeeth: Tech integrated coaching institute
Joint venture with offline test prep platform Utkarsh Classes
Experience Stores
Centers for IIT, JEE, NEET UG
Gate Academy, PrepLadder & Handa Ka Fanda - Test Prep
Mobile app Whitehat Jr – Coding, Music, Math
Great Learning - Upskilling
BYJU’S Tuition Center (Grade 4-10)
Acquisition of Aakash – Offline coaching centers (Grade 10 & above, competitive exams)
Home tuitions
SWOT Analysis: Edtech In India
STRENGTH WEAKNESS
Not Capital Intensive
Large Customer Base
Catering To Different
Needs
Scalable
Requires Infrastructure Privacy And Data
Concerns Not Evolved To Full Potential Not Fully Recognised
Cheaper Option
Less Human Interaction
Replacement To Traditional Degree
Non Metropolitan Area
Personalised Learning Corporate Training Programs
Government Support For Online Learning Competition Lack Of Differentiation Rules And Regulation Sustainability High Consumer
Acquisition Cost
SOURCE: INC42
S W O T
Key Emerging Trends In Edtech Space
Blended Learning Formats On The Cards: The line between online and offline education is becoming increasingly blurred as students and parents look for platforms that provide flexible options tailored to meet learners’ needs and preferences. With a growing emphasis on hybrid models, edtech startups will develop more and more blended learning formats, especially in the K-12 and test preparation space.
Focus Will Be On Pre-K Learning Innovation: Foundational learning and personality development are two core areas in this competitive age. Moreover, the rising number of working parents and nuclear families has led to a demand for play schools and daycares offering technology-focussed activities to help parents monitor their children’s progress.
Affordable Education, Vernacular Courses To Rule Edtech: As schools resume operations, edtech companies will prioritise grassroots marketing and explore options to develop free or cost-effective courses and products. This shift in focus comes in response to criticism regarding excessive pricing, and a significant market correction is under way. Additionally, there will be a deeper focus on regional language courses, especially in the K-12 segment, to tap into new markets beyond Tier 1 cities
Upskilling, Vocational Training To Be Most Sought-After Sectors: Like the past couple of years, the trend to enhance employability and income potential through skill development, tech certification and vocational training will continue in 2023. Unlike K-12 or test prep, skill development and certifications are considered direct investments in career growth. And they often pave the path to success even during economic downturns.
Community- & Mentor-Driven Learning To Gain Traction: The absence of industry-focussed professional courses has led to the community- and mentor-driven edtech models. Startups such as Leap.Club and GrowthX offer cohort-based learning facilitated by industry leaders, enabling young graduates, entrepreneurs and professionals to expand their networks and gain hands-on experience from seasoned experts.
SOURCE: INC42, MULTIPLE SECONDARY SOURCES
Inc42 is India’s largest tech media & information platform on a mission to build & serve India’s tech, startup & internet economy. From breaking the latest news to discovering the hottest startups, from spotting upcoming trends to simplifying complex concepts, we cover everything tech in India’s internet economy.
EDITOR SAIFLAN AIJAZ ANALYST
SANGHAMITRA MANDAL, MEHA AGARWAL
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INSIDE INDIA'S $29 BN+
EDTECH OPPORTUNITY
DECODING MARKET LANDSCAPE & TRENDS REPORT, 2023
