5 Key Reasons Behind The Growth Of EdTech Industry In India

Summary: You may have noticed the rise in the eLearning platforms and companies in India especially after the pandemic. But pandemic isn't the only factor behind the growth. In this article, I've shared 5 more factors that boosted the eLearning industry.

Before the pandemic, online learning and education were a sliver of what was available offline. In most situations, it supplemented traditional learning methods or replaced live tutoring when there was no other option. There were, in fact, no other options during the crisis, so going online became the standard.

Today, demand for Edtech solutions has skyrocketed, accelerating the digitization of education by almost 10 years. Edtech has the potential to change education as we know it, thanks to more resources and a large population of instructors and students who are now much more open to digital learning.

EdTech is no longer an infant sector in India but rather a market whose time has come, with more than $5 billion in private equity investments in the previous five years. In this sector, two unicorns have already emerged. Byju's, the most valued Edtech unicorn out of India with a $16.5 billion valuation, and Unacademy, which recently joined the elite billion-dollar club.

There are presently over 4,500 Edtech companies working in India, a sector that is expected to expand to $30 billion in the next ten years from its current market size of approximately $800 million, according to a recent analysis by RBSA Advisors.

Let’s take a look at some of the factors that are changing the Edtech market in India for good.

Factors leading to the growth of the Edtech market:

1. More and more Indians have access to the internet

As of March 2019, India has 451 million active internet users over the age of five, according to the IAMAI's "India Internet 2019" study. 385 million people are 12 or older using the internet, while 66 million are between 5 and 11. Two-thirds of internet users are between the ages of 12 and 29.

This highlights the present potential for Indian Edtech businesses. Rural education has the potential to open up a whole new market for Edtech firms, allowing them to reach even the most remote parts of the country. As a result, both rural and urban teachers and parents, who might have belonged to a generation where technology had nothing to do with education, are opening up to their crossover.

2. More Indians have smart devices

According to Cisco, the number of such devices is increasing at a 7% annual pace. In India, the number of smartphone users is anticipated to nearly double to 859 million by 2022.

With mobile as the most popular means of consuming online content in India, greater penetration of high-speed internet and smartphones will create a long-term network of digital users. These users will explore the internet for uses other than social media and eCommerce, opening up yet another market for Edtech startups.

3. There’s a large working population

Today, the bulk of Edtech firms in India have a product line marketed towards an employable demographic. In fact, the working population (aged 15 to 64) accounted for more than 67 percent of India's overall population in 2018.

The two most essential factors for assuring employment in today's market are skillset and certification. They underlie the expected demand for skill development and online certification firms. Aside from visual and textual goods, video products are available from Edtech companies.

4. Employable Indians need specific technological skills

Machine learning, artificial intelligence, blockchain, augmented/virtual reality, and natural language processing are examples of new generation technologies that have already helped India create millions of employment. However, these fields require workers with specialised skill sets that are typically lacking among Indian graduates.

As a result, unlocking the potential of online learning platforms is critical for graduates and professionals to upskill. With an estimated 280 million job seekers anticipated to enter the workforce by 2050, reskilling and learning new skills will become a need for working professionals.

5. The government’s push for better online learning

The government wants to boost the amount of digital content in educational institutions. The government has made several steps in recent years to encourage online education and skill development in the country.

Initiatives include Skill India, Swayam, Strive, Diksha, eBasta, National Digital Library. All of these offer opportunities and resources for online education.

Some major edTech companies in the industry

1. BYJU’s

BYJU'S is India's most popular Edtech firm and the inventor of the namesake school learning app, which provides highly adaptable, engaging, and successful learning programmes for kids in LKG – 12 (K-12). They also provide resources for competitive examinations such as JEE, NEET, and UPSC.

The software has been created to adapt to each student's learning style, taking into account their pace, size, and learning style. BYJU'S is leading the path for next-generation, location-independent learning solutions that lie at the intersection of mobile, interactive content, and individualised learning techniques.

2. Unacademy

Its legal name is Sorting Hat Technologies. Unacademy is a learning website that gives free access to brief lectures in the form of videos on various disciplines as well as information for major competitive tests. It enables students to better prepare for competitive exams while also encouraging self-learning.

Unacademy started as a YouTube channel in 2010 and was formally established in 2015. It is headquartered in Bangalore. As of 2021, their valuation stands at 838.5 million.

Recently, Unacademy acquired Swiflearn to improve their products, according to KeeVurds.

3. Meritnation

Meritnation is one of India's and the Gulf's most popular online education platforms for K-12 pupils. Meritnation.com has over 7.6 million users who utilise live classes, animated videos, interactive exercises, practice problems, tests, and more to learn.

Meritnation.com now offers curriculum-aligned content for major boards such as CBSE and ICSE, as well as state boards such as Maharashtra, Tamil Nadu, Karnataka, and Kerala. The Naukri group, one of India's largest Internet firms, has invested in Meritnation.

4. Doubtnut

Doubtnut is an e-learning website that allows users to ask physics, chemistry, and math problems. The software provides customised live online solutions to all of the user's arithmetic questions. Students may learn from professors who have studied at prominent institutions and universities throughout India through its online doubt clearing platform.

It also offers CBSE and ICSE board school kids solutions to learn math in an organised manner from the comfort of their own homes. It was founded in 2016 and is headquartered in Gurgaon.

5. Classplus

Classplus is a mobile-first SaaS platform that allows 3000+ instructors to automate their curriculum and operations totally. Classplus arose from a desire to reimagine classroom interaction in India.

The company was founded in 2018 in Noida and believes that the tasks of a tutor should be streamlined, that a child's learning curves should be personalized, and that parents should be kept informed at all times.

Indian Edtech Industry Will Continue To Grow

In a few years, India is expected to be the largest online education consumer market. The sudden shutdown of schools owing to Covid-19 has accelerated India's already-changing educational environment.

Investors are racing to acquire a piece of the pie before it's too late since the industry has great potential in the future years. In India, this is a great year for Edtech businesses!

Did we miss an important update about the Edtech industry in India?

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