Ed-Tech
Overview - Indian EdTech Industry
The Indian EdTech industry was valued at US$ 750 million in 2020 and is expected to reach US$ 4 billion by 2025 at a CAGR of 39.77%. This growth is driven by rising demand for non-academic courses from tier II & III cities and the need for personalisation in the EdTech space. Out of the projected market value of US$ 4 billion, US$ 1.5 billion will focus on K–12 (Kindergarten to Class 12), after school foundational and pre-preparational courses.
EdTech funding focused on start-ups
Indian EdTech start-ups raised more than US$ 1.43 billion across 100 deals in 2020. The COVID-19 pandemic disruptions and subsequent lockdowns compelled both parents and educational institutions to implement tech-enabled learning solutions, making EdTech the most funded sector in the country.
Exponential growth of internet penetration in India
According to the IAMAI-Kantar ICUBE 2020 report, India had 622 million active internet users in 2020. This number is expected to increase by 45% to reach 900 million by 2025, due to higher adoption rates in rural India. Small towns in India account for two out of five active internet users in the country. Urban population comprises 67% of active internet users.
According to the Annual Status of Education Report (ASER) 2020, smartphone ownership among government school student families increased from 30% in 2018 to 56% in 2020, whereas smartphone ownership among private school student families rose from 50% to 74%.
Government initiatives driving the Indian EdTech industry
The Indian EdTech industry is expected to be more policy friendly in the upcoming years due to rising government interest. The National Education Policy 2020 emphasised the importance of leveraging technology in education solutions and supported creation of leaning content in regional languages, calling it a high priority.
K–12 category has potential to grow in the future
The EdTech industry in India is growing at a significant rate, with high interest in the K–12 segment as COVID-19 lockdowns have disrupted the activities of educational institutions. According to Tracxn, a data analytics company, Indian EdTech firms have raised US$ 5.77 billion in funding in 2021 so far. Of the total amount raised, US$ 99 million was raised by K–12 education specialists. Since 2018, more than 4,800 K–12 EdTech start-ups have been launched globally, with 1,782 start-ups in India alone. They offer courses in the form of subscription packages for a set of subjects to each class.