In brief, Biju’s is the highest funding receiver company among the ed-tech company in 2022 despite declining investment in the ed-tech sector.
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India’s ed-tech sector sees record investment in 2022, with Byju’s leading the way
The ed-tech sector in India saw phenomenal growth during the epidemic due to school closures and a move to online learning accordingly. However, 2022 was a crucial year for the industry due to the decrease in funding, an examination of business models, and the respective losses.
PwC’s Startup Deals Tracker – CY22 reports a sharp decline in venture funding for ed-tech businesses in India, from $4 billion in 2021 to $1.8 billion in 2022. However, the report says that amount was even lower than the financing levels seen in 2020 when the overall investment in ed-tech reached $2 billion.
In addition, PwC’s research shows a fall in funding deals for the ed-tech sector. Compared with only 52 deals registered in 2022 compared to 88 the year before. The K-12 sector, which saw a substantial investment. But experiencing its own set of issues in this duration was seamlessly difficult.
Nevertheless, despite the sector’s short-term difficulties, there are signs of long-term growth potential. The shortage of teachers and the lack of available courses in offline education is the reason for the expansion of the ed-tech sector in India. Over 700 million Indians use the internet, and the “India e-Conomy Report” produced by Google, Bain & Company, and Temasek highlighted how essential digital services have become to Indians’ daily life. Consequently, as per the current scenario, the growth rate will be slow in the ed-tech industry.
The analysis shows that roughly half of the users spend on ed-tech platforms, demonstrating the widespread use of online education. Additionally, a 30 per cent compound annual growth rate (CAGR) is predicted for the upskilling and online K–12 tuition markets by 2030.
Key factors of India’s ed-tech sector sees record investment in 2022
|Name of the topic||India’s edtech sector sees record investment in 2022, with Byju’s leading the way|
|The leading ed-tech company||Biju’s|
|Ed-tech||Technology merged in education sector|
|Users||All stakeholders in school, College and educational institutions|
|Internet users in India||Over 700 million|
Who uses the ed-tech industry in India?
According to the survey, 78 per cent of Indian users of ed-tech platforms began doing so during or after the pandemic, and of those, 85 per cent are from major cities, 77 per cent are from tier-1 cities, and 74 per cent are from tier-2 cities.
Even if it involves taking out a personal loan, 66 per cent of digital consumers choose to take an expensive online course, and 59 per cent prefer courses with the greatest lecturers, even if they are more expensive.
What does the Indian consumer of ed-tech want?
The study found that 28% of students use it to get ready for entrance or competitive tests and 23% desire to pick up a new skill for their job.
Since, 30% of ed-tech customers have paid for an online test preparation course, a dearth of skilled professors is likely to push students towards these platforms.
Furthermore, compared to pure-play online courses, 60% of ed-tech consumers favour offline-online models.
Future demand for online certification and diploma programmes is expected to increase due to the need for ongoing upskilling and reskilling due to the fast-evolving nature of the workforce today.
Report on the ed-tech market
- By 2025, it is predicted that the EdTech market would be worth USD 10.4 billion. There are already 4,450 ed-tech startups operating in the nation, helping almost 300 million students.
- Over 70 million students are enrolled in one of the largest higher education systems in the world in India. Over the previous 20 years, the country has added new facilities to serve an extra 40 million pupils.
- Spending on higher education already exceeds INR 46,200 crore, and by 2025, it is anticipated that spending will increase by an average of nearly 18% annually to reach INR 232,500 crore.
- India has a 16% internet penetration rate (as opposed to 84% in the US), but it is the second-largest market for e-learning after the US.
- Byju’s, Eruditus, Unacademy, PhysicsWallah, Lead, Upgrade, and Vedantu are some of the sector’s unicorns.
In 2022, Biju’s is setting the standard
- With gross revenues of around Rs. 10,000 crore in FY 22, BYJU’S experiences fast growth. K-12 business increased by more than 150%.
- The revenue of group companies Aakash and Great Learning has increased by double.
- The biggest ed-tech company in India, BYJU’S, reported approximately Rs. 10,000 crores in gross revenues in FY 22, and its K–12 education business is expanding quickly. The business earned Rs. 4530 crore in revenue between April and July 2022.
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Information By – Supriyo Mishra