[Watch] This year’s funding into edtech startups outshines the last five years: Report
Indian Venture Capital Association and Praxis Global Alliance have released an edtech report titled
"The Great ‘Un-Lockdown’: Indian EdTech, Disruptions and opportunities for the next decade". The report says that the total amount raised by the edtech industry in 2020 was $2.2 billion. This is significant as the Indian edtech ecosystem has raised $4 billion over the last five years.
This also marked the rise of B2B edtech startups, over 92 players received funding in 2020, out of which 61 players received seed funding.
Over the last three years, this segment has received the total funding of $31 million.
The report is an analysis of the current education landscape in India. Speaking with YourStory, Sandeep Singhal of Nexus VP, and Madhur Singhal of Praxis Global Alliance, talked about the future of edtech.
"Edtech is an industry where one player cannot do everything or it is not a winner take all market. Several players have focused on outcomes and the data shows that there are more than 360 million learners. These learners will be discerning and will learn from platforms that fulfil their learning requirements. You have to remember that edtech is very different from the consumption business. People value their learning," said Sandeep Singhal, MD of Nexus Venture Partners.
According to the report, education is a $117 billion market in India, with currently around 360 million learners.
Around $49 billion is spent on school education, of which primary education comprises 66 percent of the spend, followed by secondary education at 27 percent.
Around $42 billion is spent on supplementary education, which primarily comprises private coaching and test preparation.
The report highlights the rise of Indian edtech startups, which received a total investment of $2.22 billion in 2020 alone, compared to $553 million in 2019
Madhur Singhal, Practice Leader, Education, Employment and Entrepreneurship, Praxis Global Alliance said, “Large shifts in learner requirements is reshaping the education and edtech landscape globally. With an increase in focus on self-paced learning, an informed selection of tools/aids on top of better awareness and accessibility, and the idea of continuous learning beyond schools and colleges via professional education courses is driving innovations in the way learning content is being a consumer and delivered in India.”
The education sector has received growing attention from the government with budgetary allocation increasing from $11.3 billion in 2018-19 to $13.2 billion in 2020-21.
The lockdown imposed to curb the spread of COVID-19 has exponentially increased the demand for edtech products in India. Also, the recently introduced National Education Policy 2020 is expected to give a fillip to edtech (both, in the classroom and outside the classroom) due to increased focus on concept-based learning for students.