Back in March 2020, when the government announced lockdown everyone saw the time at home & in hand as an opportunity to learn and do something new.

The social feeds were full of pictures of them washing their hands, to an at-home work-out session, trying new recipes, doing household chores to the picture of their new home office. The idea was to maximize the utilization of their time. Amongst all of this, there was also a race to learn something new and to acquire knowledge so that you come out stronger on the other side. Equipped with a new skill.

This common thought from the commoners ensured that the category stays in focus and seeks uncommon attention. Edtech is the blue-eyed sector which is in the center of all attention.

What is Edtech? It is simply a combination of education and technology i.e. a hardware and software design process to improve remote learning. Technology-enabled learning that aids teachers & enhances students learning. This new learning has seen a growth of 5X jump in terms of users engagement only in the year 2020. A set-up where the users can learn sitting at a remote location through a recorded or a live session.

As per Datalabs there are 4450 edtech start-ups in India, and the sector is expected to grow at 3.7X in the next 5 years and a business-size from USD 2.8 Bn to USD 10.4 Bn. The sector is expected to cover over 37 Mn users by 2025.

The world is changing at a fast pace and acquiring newer skills will continue to be the key to success;

The segment has been one of the key sectors which has seen the highest growth during the pandemic and the key reasons that could be attributed to the sector could be;

Untapped Opportunities: Digital learning has helped acquire newer skills and opportunities that have been ignored in the past, Edtech has provided an opportunity of learning to all irrespective of their age, gender, or location.

Wider Acceptance: The horizon and the scope to learn has been immense. The arrangement to pick a topic at the convenience of time has been widely accepted.

Need for Life long learning: It’s human to have an urge to continue to learn. This human psychology is helping the segment grow.

Lower Competition: It is a sunshine segment with limited comparative competition and thus an avenue which is allowing numerous new entrants.

Higher ROI: with the growing demand the valuations of the edtech companies are growing thus the change in ROI.

The rise in demand/growth is directly proportional to the investments. The sector has garnered a lot of attention from the venture capitalists and the key factors influencing the same are;

• Core Problem & its impact: The sector is working towards the core problem and the impact it has created in the lives of the commoners. The investors would be keen to understand the universe and the scope they could cover.
• Business Model: The business model has an immediate revenue generation. From subscription-based learning which is the most common form to a course-based commercial model.
• Robust Cashflow
• Competitive Landscape
• Alignment to VC’s mission
• Scalability
• Experience

India has already seen an investment of USD 1.4 Bn in the past 6 months and it is expected to continue growing and this is supplemented by the growth in the literacy rate in India from a 61% in the year 2001 to 74% in the year 2018.

The space is being catered to by different offerings in the types of technology:

K12: Learning for school students & tutors. This is a large category and at the center of attention with players like Byju’s;

Test Preparation: Helps students to prepare for online assessments (Classplus)

MOOC (Massive Open Online Courses), helping learners with all age & group to acquire diverse learnings (Upgrad)

Tech Learning solution: Offering the learners the technical understanding on the subject (Edureka)

Gamified Learning: Helping students to learn various aspects through games (The Bear)

Language Learning Platform, assisting all to learn new language oral and in writing.

The sector also has challenges of plenty yet it is certain that the segment would continue to expand. Especially that the countries academics has shifted online in the year 2020. With Schools & colleges quickly adapting and accepting technologies the rules to the game have been relayed.

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