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The growing ED-Tech market in India

The outbreak of Covid-19 has opened up new frontiers for EdTech startups in the Indian market, especially the ones looking at the enterprise or B2B segments.

In response to the growing demand, EdTech players have scaled up their offerings and new players with innovative business models catering to unserved segments have emerged post-Covid.

Following are some of the reasons supporting the exponential growth of EdTech market in India

Competitive internet data charges

EdTech, which was already clocking a healthy double-digit, year-on-year growth before Covid-19, suddenly got a massive boost with the inflow of investments, acquisition, up-gradation in offerings and more players quickly shifting and adding students thanks to one of the lowest Internet data charges.

The growth of the EdTech sector has coincided with increased internet penetration in the country, particularly in Tier 3/4 cities and villages. The sector has also seen increased investor activity due to the tremendous growth potential of the EdTech players in India. Segments such as online tutoring and competitive exam preparation have witnessed an increase in investments by PE and VC players in the past few years.

Government’s focus on the education sector

Education is one of the primary sectors under focus by the Indian government. India currently has 360 million learners across age groups, which is expected to grow further with an increase in school and college enrolments. The sector has witnessed growing attention from the government with budgetary allocation increasing from $11.3 billion in 2018-19 to $13.2 billion in 2020-21.

The education sector in India is quite fragmented with various players across segments. The past few years have witnessed the emergence of the EdTech sector with supplementary learning opportunities for students and working professionals.

Mushrooming of start-ups

Indian Ed-Tech start-ups cornered a chunky $2.2 billion in funding in 2020, led by the K-12 and test preparation segments, according to a report by IVCA-PGA Labs. This is a substantial increase compared with investments worth $553 million that such companies garnered in 2019.

The increasing investor appetite for the sector is not surprising, given that the pandemic led to a significant increase in demand for Ed-Tech services. Students across the country signed up for such platforms to make up for lost school hours

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