India’s Edtech Opportunity

The mode of teaching in India transformed from oral recitations (Shruti), debates, manuscripts and gurukuls to the current smart-board based and tech-based platforms leveraging advanced technologies like deep-tech and AI to deliver personalized content.

The introduction of Right To Education (RTE) through the 86th constitutional amendment (in 2002) transformed the way education was perceived in India, both for the consumers and the businesses. The adult literacy rate of India leaped from 61% in 2001 to 74% in 2018. The emergence of startups like BYJU’s, SimpliLearn, Vedantu, Meritnation, etc. has played a yet important role in the given feat.

In light of the current pandemic, the lockdown has embraced a surge in demand for Edtech startups. Over 14 startups have raised funds since March of 2020, as we continue to notice the acceptance of tech in Education. But, despite the presence of only one unicorn in this sector, there is a space for innovation to find a reception here. Even the only EdTech unicorn of India has to spend quite a number of years to relish the current status. The counter-argument has been the lack of ability for a student to groom the interpersonal skills apart from the networking opportunities offered by the classroom courses. It has been reported that at least 4450 ed-tech startups have been launched in the country while only 4.17% of them were able to raise funds.

The heart of this surge is the US, with 43% of the world’s EdTech enterprises having their headquarters located in the USA. India has the second-highest number of EdTech startups, with 10% being located in the country. Brazil (9%), the UK (8%), and China (3%) all make it into the top 5 countries leading the way in EdTech.

Some of the VC firms that have made investments in Indian Edtech startups include:

• Omidyar Network: Grants to non-profits and equity investments in early-stage startups.
• SAIF Partners: Backed Toppr and Unacademy.
• Blume Ventures: One of the most active VC firms in EdTech with a preference for test preparation platforms. Made 6 investments at Pre-series-A and seed stage.
• Sequoia: Covered 10 Edtech deals in 2019.
• Nexus Venture Partners: Portfolio includes Unacademy, Quizizz, WhiteHat Jr, etc.
• Accel Partners: Backed EduPristine and Vedantu.
• InnoVen Capital: Funded BYJU’s and Eruditus.
• Helion Venture Partners
• Indian Angel Network: Thinkerbell Labs
• 500Startups: OnlineTayari
• Educational Investment Fund: Oliveboard
• VentureCatalyst: Qin1

Seed/ angel investors in India include: