Ups and downs of edtech in 2023; Edtech in 2023: BYJU’S and beyond

Hello,

Merry Christmas!

Foreign portfolio investors (FPIs) have injected Rs 57,313 crore into the Indian equity markets this month (till December 22) owing to robust economic growth, political stability, and a decline in US bond yields.

With this, the total investments by FPIs surpassed Rs 1.62 lakh crore this year.

Meanwhile, there’s a record demand for office space in India. According to a report by real estate consultant Colliers India, gross leasing of office space in India stood at 58.2 million sq ft in the fourth quarter of 2023.

While Bengaluru dominated the office space absorption with a one-fourth share, Chennai’s demand for office space grew 2X.

ICYMI: Offbeat travel destinations to go in this winter vacation.

Oh, and are you awaiting your X’mas present? You can track Santa Claus’ once-a-year journey from the North Pole as North American Aerospace Defense Command (NORAD) continues its 68-year tradition of letting children know where Santa has been held up. 

In today’s newsletter, we will talk about 

• Edtech in 2023: BYJU’S and beyond
• Helping discover and build connections

Here’s your trivia for today: Also called 'milk punch,' eggnog is a popular Christmas beverage. Where did it originate?

Edtech

Edtech in 2023: BYJU’S and beyond

After a turbulent 2022, the edtech sector hoped for a rebound in 2023. Alas, that was not the case with prominent players like BYJU'S grappling with woes, including widespread layoffs, top-level departures, and funding constraints. On the positive side, edtech firms realised the need for strategic business improvements and prudent cost-cutting measures to tide over the liquidity crisis.

“It is likely that we will continue to witness layoffs going forward as companies in the sector streamline and aim to become more profitable,” says Neeti Sharma, Co-founder and President of TeamLease Edtech.

Industry trends:

• Funding in India’s edtech sector saw a significant drop in 2023 to about $712 million (till now), compared to $2.9 billion in 2022, according to market intelligence platform Tracxn.
• “The Indian edtech industry is undergoing a shift from pandemic-driven growth to consolidation and specialisation,” says Atul Kumar, CEO Online at PhysicsWallah, which acquired a 50% stake in Xylem Learning.
• While digital-first firms like BYJU’S, Unacademy, and PhysicsWallah are ramping up their offline strategies, traditionally offline players such as ALLEN and Sri Chaitanya are making efforts to boost their presence in the online space.

Startup

Helping discover and build connections

Founded in 2020, Introbot is an AI-powered WhatsApp platform that helps attendees access, engage, and build professional relationships with relevant decision-makers at events and business communities. It is designed to facilitate connections among founders, professionals, and investors.

Networking opportunities:

• To match users with relevant people who fit their needs and criteria, Introbot gathers data useful for both the organisers and the sponsors.
• Its in-built AI engine recommends relevant connections and content based on a person’s profile information. It understands over 10,000 keywords and can create a network graph of information and people.
• Introbot has collaborated with clients such as YourStory, NRAI, Simpl, Inc42, Unicommerce, D2C Insider, YCombinator, and Antler, over 200 B2B communities, and 20,000 decision-makers. 

News & updates

• Global inequality: Rich countries are using the green transition as an excuse to boost their own economies at the expense of developing ones, exploiting outdated World Trade Organization rules, according to the UN’s trade chief Rebeca Grynspan. She said the international trading system, which had allowed states such as South Korea and Costa Rica to progress, was no longer working for the poorest.
• Crypto meme coin: The native cryptocurrency of Solana continued a spectacular climb that has already lasted three weeks by breaking beyond the $110 mark. The cryptocurrency has seen a 400% rally in its value over the last six months. This coincides with a substantial uptick in meme coin activity in the cryptocurrency space, which is helping to increase the platform’s acceptance and appeal.

What you should watch out for

• Economic data: On December 29, the Ministry of Commerce and Industry will release the Index of Core Industries, which measures the output growth of cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products and steel sectors. For April-October 2023, the output of these eight core industries was 8.6% higher YoY, with these sectors growing 12.1% YoY in October.
• SME IPOs: The last week of 2023 will see a handful of small and medium enterprises (SMEs) debuting on the bourses. Akanksha Power and Infrastructure and Shri Balaji Valve Components both will open for subscription on Dec 27 and close on Dec 29. Infrastructure management company Indifra will close for subscription on December 27, and will use the capital for acquisitions and to meet working capital requirements.

Also called 'milk punch,' eggnog is a popular Christmas beverage. Where did it originate?

Answer: Medieval Britain. It came from a British drink called posset, which was made with hot milk curdled with wine or ale and spices.

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