The Indian EdTech industry was valued at a staggering ₹3 lakh crore in 2023. It remains the second-largest global market after the United States. The pandemic-driven surge has slowed down. However, online higher education and upskilling programs are flourishing. They are driven by a renewed focus on job-readiness and industry relevance. According to Technopak Advisors, this sector is expected to skyrocket to ₹8.5 lakh crore by FY 2028 with a robust 23.1% CAGR.
The Golden Age of EdTech (2020-2021)
The pandemic served as a launchpad for India’s EdTech sector. With traditional schooling disrupted, platforms like BYJU’s, Vedantu, and LeadSchool became household names, providing K-12 education online. Competitive exam prep giants like Unacademy and PhysicsWallah thrived, offering tailored courses for JEE, NEET, UPSC, and SSC aspirants.
In 2020 alone, EdTech startups amassed ₹2.2 billion in funding. By 2021, the sector hit a record-breaking ₹4 billion, with BYJU’s securing a massive ₹1.35 billion and Unacademy netting ₹264 million. EdTech unicorns multiplied, but this meteoric rise was short-lived.
Post-Pandemic Reality Check
The end of lockdowns brought a “funding winter” for EdTech. BYJU’s was valued at ₹22 billion in 2021. Its worth plummeted to near zero by 2024 due to unsustainable spending. The mounting dissatisfaction from parents and employees also contributed to its downfall. Competitors like Vedantu, upGrad, and Eruditus faced similar struggles, reporting widening losses.
With over 4,500 startups vying for investor attention, the battle for survival intensified. Despite the downturn, five EdTech unicorns — Unacademy, upGrad, Eruditus, Vedantu, and PhysicsWallah — continued to innovate. Only PhysicsWallah remained consistently profitable.
A New Chapter: Higher Education and Upskilling Rise
While K-12 EdTech faltered, online higher education and upskilling courses surged. Platforms like Jaro Education, upGrad, and Skyy Skills are at the forefront. They offer industry-aligned programs in collaboration with top institutes like IITs and IIMs.
Key drivers of this growth include:
- National Education Policy (NEP) 2020: Encourages digital learning, multidisciplinary education, and industry-academia partnerships.
- Hybrid Learning Models: A blend of online and offline education is now preferred, providing students with flexibility and real-world exposure.
- Job-Oriented Courses: Growing interest in AI, fintech, electric vehicles, and data science is fueling demand for specialized programs.
Key Players Adapting to Change
- Skyy Skills: Partners with IIT Kanpur, Ashok Leyland, and TVS to offer upskilling programs for graduates and working professionals.
- Jaro Education: Offers 239 courses, with MBA and technology programs dominating. Collaborates with seven IIMs and five IITs to deliver industry-relevant content.
- IIT Kanpur: Launched e-Master’s degrees in 2021, allowing students to complete courses without a GATE score.
More professionals are seeking AI and machine learning skills. As a result, there’s a growing appetite for courses that enhance decision-making and leadership capabilities.
The Road Ahead
Despite setbacks, India’s EdTech landscape is resilient. The focus has shifted to:
- Upskilling and certifications to meet evolving industry needs.
- Geographically inclusive education through digital platforms.
- Hybrid learning to combine the best of online convenience and offline experience.
Technological advancements and government policies are shaping the sector. EdTech companies that adapt to these shifts will thrive in India’s dynamic educational ecosystem.
The EdTech story isn’t over — it’s just evolving.
