EdTech platforms are not only limited to virtual learning, most of them offer personalized learning for a hassle-free study environment
Photo for representational purpose
Amidst the ongoing pandemic, the lockdown has forced several shutdowns and due to this very reason, one of the few sectors that have witnessed growth at a rapid pace is India’s EdTech industry. The platforms have achieved their long-term business goals within few months. And this happened especially after most of the institutes have adopted technology to continue delivering education during this critical time. To fulfil the significant demand, the EdTech platforms combined have raised funding of $2 Bn in 2020 up from $553 Mn in 2019. The current market size of the Indian EdTech sector stands at $ 800 Mn and is expected to grow 8x over the next five years.
EdTech platforms are not only limited to virtual learning, most of them offer personalized learning for a hassle-free study environment. Hence, every kind of learner is signing up for online courses while studying remotely. Leading educational technology unicorn, BYJU’S, have added 45 Mn new users in 2020 and recorded revenue of $46.92 Mn. Vedantu, another EdTech startup that mainly focuses on K-12 learners has witnessed a 4x growth in revenue in 2021 and the revenue run rate is at around $60 Mn presently. Melvano, a fast-growing test prep platform saw a 6x increase in the number of users & a 2x increase in engagement in the past year.
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Taran Singh, CEO of Melvano said, “The COVID pandemic has pushed Indian Edtech sector in a hyper-growth trajectory. A huge portion of this growth comes from Tier 2 & Tier 3 cities, which will play a pivotal role in shaping the Indian EdTech story. The sector will grow 8-10x in the next 5 years, wherein Test preparation will be the fastest-growing segment, growing at 64% CAGR, followed by the K-12 segment. This fast-paced growth will be led by the digitization of coaching centers & mushrooming EdTech startups to cater to the growing need. Having a clear differentiation & product-led growth will act as leverage for startups. For instance, the Melvano app uses a blended approach as opposed to entirely self-paced online apps, which helps students get a clear path to crack exams. The additional social features like discussions & leader-board help build virality leading to low CAC”
Taran Singh who is also an IIT Madras alumnus founded Melvano in 2018 and was the recipient of the Sri Chinmay Deodhar award by IIT Madras for ‘Innovative project’. There are currently over 4,500 active EdTech startups in India and the market will continue to expand even after the pandemic ends. A recent report from PGA Labs and IVCA, says, India’s education sector will swell from the current $117 billion to $225 billion by FY25.
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