According to data from the Indian Private Equity and Venture Capital Association (IVCA) and PGA Labs, India’s ed-tech startups saw a cumulative investment of $2.22 billion in 2020 compared to $553 million in 2019. In 2020, at least 92 players earned funding, of which 61 players got seed funding.
Titled ‘The Great Un-Lockdown: Indian Edtech,’ the study reported that in the last five years, Indian online education platforms have raised $4 billion (2016-2020). In 2020 alone, Indian edtech start-ups received a cumulative investment of $2.22 billion compared to $553 million in 2019. The largest share was held by K-12 and Test Preparation companies ($1.98 billion), followed by Continued Learning ($142 million), Higher Education ($84 million), Pre-K ($12 million) and B2B Edtech ($7 million),’ it said.
According to the report, Byju’s, Unacademy, and Vedantu accounted for the highest share of financing in the last five years. Over the last five years, Byju’s has earned the most money at $2.32 billion (latest valuation at $12 billion), followed by Unacademy at $354 million (valuation at $2 billion).
The study estimates that with about 360 million learners in 2019-2020, education is a $117 billion sector in India. Furthermore, the study said that about $49 billion was spent on school education, 66% of which was spent on primary education and 27% on secondary education.
It added that the educational market is projected to rise 2x to USD 225 billion by FY25 at 14% CAGR over FY20-25.
Rajat Tandon, President of IVCA, 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 with budgetary allocation increasing from $ 11.3 billion in 2018-19 to $ 13.2 billion in 2020-21, the education sector has received increasing attention from the government. As a result of the spread of COVID-19, the lockdown imposed has increased the demand for edtech products in India, he added.
Although over $40 billion is spent on supplementary education, which according to the study, mainly includes private coaching and test preparation. According to the study, the education and the ed-tech market is split into 5 segments: Pre-K, K-12 and test preparation, higher education, continuing learning and B2B ed-tech.
Also, by FY25, the education market is likely to rise 2x to $225 billion at 14 percent CAGR over FY20-25. In 2017-2020, B2B ed-tech companies earned $31 million in total funding