With an internet penetration of 500 million and more than 25% of the population below 25 years of age, the business potential for edtech in India is for all to see. Add to this the rising disposable income, growing number of job seekers and dissatisfaction with the current education system, and you have a clear winner.
The edtech sector in India can be categorized into the following four segments:
Online learning is the biggest segment with 1.6 million paid users. Reskilling & online certification and primary & secondary supplementary education form the biggest share followed by language learning and test preparation.
The startup scenario in the sector has been growing tremendously for the last five years with more than 3000 startups incorporated and approx. USD 600 million invested. Investors have been increasingly shifting focus towards more mature startups. Some of the active investors are Sequioa Capital, Blume Ventures, Lightspeed Venture Partners, Accel Partners, Unitus Seed Fund among others.
The Indian Government has also taken a number of initiatives to provide the requisite boost to the sector. Some of these are ePathshala to provide access to digital textbooks, audio, video, maps, question bank etc; eBasta to make school books accessible as ebooks; Swayam to provide anytime anywhere access to courses.
The market is, however, fragmented with segment leaders but no single player enjoying a substantial market share across all segments. The more established players appear to follow an acquisition model for diversification and increase their market share.
Going ahead, it is believed that technology usage to increase student engagement and assessment will be a key success factor. Cloud computing, artificial intelligence, big data, personalized robots, virtual and augmented reality will see growth.
Across the value chain, there is business potential in:
For more information, please contact:
Ambika Oberoi Sawhney
Senior Market Advisor
New Delhi, India
+91 11 49099202