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Indian edtech startups received over $2.22 billion funding in 2020: Report

India’s sole edtech unicorn, Byju’s, hogs the lion’s share with $1.27 billion in total funding but there’s paltry funding for a broader range of edtech startups. bloomberg (MINT_PRINT)Premium
India’s sole edtech unicorn, Byju’s, hogs the lion’s share with $1.27 billion in total funding but there’s paltry funding for a broader range of edtech startups. bloomberg (MINT_PRINT)

  • Titled as ‘The Great Un-Lockdown: Indian Edtech’, the report mentioned that Indian online education platforms have raised $4 billion in the last five years (2016-2020)
  • Byju's, Unacademy and Vedantu accounted for the highest share of funding in the last five year

Indian edtech startups have seen a total investment of $2.22 billion in 2020 as compared to $553 million in 2019, according to Indian Private Equity and Venture Capital Association (IVCA) and PGA Labs data. At least 92 players attracted funding in 2020, out of which 61 players received seed funding.

Titled as ‘The Great Un-Lockdown: Indian Edtech’, the report mentioned that Indian online education platforms have raised $4 billion in the last five years (2016-2020). "Indian edtech startups received a total investment of $2.22 billion in 2020 alone, compared to $553 million in 2019. K-12 and Test Preparation companies accounted for the largest share ($1.98 billion), followed by Continued Learning ($142 million), Higher Education ($84 million), Pre-K ($12 million) and B2B Edtech companies ($7 million)," it said.

Byju's, Unacademy and Vedantu accounted for the highest share of funding in the last five years, according to the report. Byju's raised the most capital in the last five years at $2.32 billion (latest valuation at $12 billion), followed by Unacademy at $354 million (valuation at $2 billion).

The report estimates that education is a $117 billion market in India with around 360 million learners in 2019-20. The report further said around $49 billion is spent on school education, 66% of which is spent on primary education and 27% on secondary education.

The education market is expected to grow 2x to USD 225 billion by FY25 at 14 per cent CAGR over FY20-25, it added.

Rajat Tandon, IVCA Presidentm, said, "EdTech is one sector which goes in sync with the Moore's Law, with the advancing tech, Education Technologies in India have become a change maker...EdTech in India has emerged a clear winner, this report also projects how new unicorns are being presented globally, putting India yet again on the globe in regards to tech, innovation and digital consumption."

The report noted that the education sector has received growing attention from the government with budgetary allocation increasing from $ 11.3 billion in 2018-19 to $13.2 billion in 2020-21. Lockdown imposed due to the spread of COVID-19 has increased the demand for edtech products in India manifold, it added.

Madhur Singhal, Practice Leader, Education, Employment and Entrepreneurship at Praxis Global Alliance, said “Large shifts in learner requirements is reshaping the Education and edtech landscape globally. With an increase in focus on self-paced learning, an informed selection of tools/aids on top of better awareness & accessibility, and the idea of continuous learning beyond schools & colleges via professional education courses is driving innovations in the way learning content is being a consumer and delivered in India."

Vaibhav Tamrakar, Vice President at PGA Labs, said digitisation of educational institutions and learning ecosystem, continuous learning for employability and professional career growth, and student-lifecycle services such as student housing and Fintech in education are some of the whitespaces where the next EdTech unicorn can emerge from India in the next decade.

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