India is proud of its educated students. Some of the leadership roles across leading companies employ educated Indians. These include NASA, Google, IBM, Starbucks, and even the President of the prestigious Ivy League, Harvard University.

India’s students are bright and they deserve the best — but, is the current Indian Ed-tech Company landscape failing them?

According to a recent report published by Forbes, Ed-tech companies based in India have been featured in an “‘Alarming’ Red Report Card.” Byju’s, Unacademy, and Udemy hail the biggest names in the Ed-tech company sector in the country. Yet, each of them is suffering massive losses.

Ed Tech Company Crash

To put things in context, let’s review their funding over the years compared to the growth generated:

Byju’s raised $863.9 million in 2021, and $800 million in 2022. Thus, rising to a whooping valuation of $22 billion in 2022, to $17 billion in 2021.

Meanwhile, running on operation costs worth $22.8 billion, Byju’s incurred losses of up to $45.6 billion. These are the figures for FY21. If you’re wondering about the financial reports for the year 2022, they have not yet been filed. In fact, because of Byju’s “long-delayed” reports, Deloitte announced its decision to sever ties with the highly successful Indian startup in June. Likewise, board members from Peak XV Partners (formerly known as Sequoia Capital India), Prosus, and the Chan Zuckerberg Initiative also stepped down from their positions.

PhysicsWallah’s Success

But not all are experiencing the same fate. PhysicsWallah is one of the only exceptions to this cold Ed-tech winter in India. Which begs the question: What is PhysicsWallah doing right?

Physics Wallah operated as a bootstrapped initiative for six years. Using YouTube revenue, he established the company and created the PW app in 2020. However, in June 2022, a pivotal moment arrived. The startup secured $100 million through a Series A funding round led by Westbridge Capital and GSV Ventures, propelling Physics Wallah into Unicorn status with a post-funding valuation of $1.1 billion.

However, the key behind PhysicsWallah’s success can be attributed to the personalization of his classes. Every student, be it on YouTube Live, or the app, is made to feel seen, heard, and acknowledged. Thus, fostering trust. Students on Quora have raved about how founders Alakh Pandey and Prateek Maheshwari feel like “elder brothers” to the young audience looking for guidance.

PhysicsWallah plans to open more offline centers and introduce more courses alongside enhancing its online platform. Also, the company plans to expand its content to nine vernacular Indian languages. You can expect Gujarati, Malayalam, Tamil, Telugu, Kannada, and a few more. This would expand the student base of PhysicsWallah, which could be estimated at around $250 million by 2025.

Investor fund Distribution

Now that we have unveiled one of the contributing factors to an Ed-tech company’s success – personalization. Let’s explore what the investors are betting their money on, at the moment.

In 2023, five segments received maximum funding. These comprised Online Courses ($750 million), K–12, from kindergarten to 12th grade ($710.1 million), Test Prep ($708.1 million), Higher Education ($112.5 million), and Continued Learning ($58.8 million).

Moreover, Ed-tech start-ups enjoyed a massive surge in funding at the peak of covid-19 pandemic in 2021. $4.1 billion went towards funding 284 start-ups. The lockdown forced flocks of students to switch to accessible online education and learn at their own pace.

A major chunk of the money went toward the gamification of education in 2021($21.9 million). However, funding in the segment observed a drop in 2022 ($2.4 million), alongside overall funding ($866.5 million).

Ed-Tech Company Priorities

While the funding drops, 92 million students are projected to enroll in higher education by 2035.

If the market is growing – why are investors shying away from Ed-tech? What’s hindering the growth of this massive market?

Times of India highlights the following aspects regarding the growth of the ed-tech company market in India:

Affordable Online Education:

Despite the affordability and accessibility of online education, traditional beliefs and expenditures on offline learning persist. However, online courses’ cost-effectiveness, as highlighted by KPMG’s research (53% less expensive than offline options), indicates a shift towards more economical learning options. Parents are gradually recognizing the value and convenience of online courses as an alternative.

Availability of Quality Education:

Ed-tech companies bridge the gap in digital infrastructure and update their courses with the latest developments. The projected growth of the online education market by almost $2.28 billion during 2021-2025 reveals a rising demand for high-quality online learning. This surge in demand underscores the need for education that aligns with technological advancements and addresses the dearth of quality learning resources.

Lack of Educational Infrastructure and Qualified Faculty:

The ed-tech sector’s expansion overcomes physical infrastructure limitations, providing intellectual resources and trained educators to a wider audience. This circumvents the shortage of schools and skilled teachers, ensuring education reaches the remotest corners of the country. As internet and smartphone usage rises, ed-tech acts as a catalyst for democratizing education.

Upskilling Demand among Professionals:

The ed-tech industry addresses job market challenges by offering affordable, efficient, and flexible upskilling options, crucial for navigating an evolving job landscape. The online skill courses’ affordability, hands-on approach, and shorter duration, as highlighted by the $2.28 billion growth projection, appeal to professionals seeking to remain competitive in a rapidly changing job market.

Rise in Internet and Smartphone Usage:

With increased Internet and smartphone adoption, students from remote areas gain access to skill development courses, breaking down geographical barriers. Around 830 million people had internet access in 2021, and with the prediction that 1 billion people will use smartphones in India by 2026, ed-tech taps into a vast demographic seeking education.

Digital-Friendly Government Policies:

Initiatives like Digital India and Skill India, along with favorable FDI policies, signal government support for Ed-tech, enabling its growth and impact. The government’s endorsement not only encourages new players in the industry but also underscores the recognition of ed-tech as a vital pillar in the future of education in India, amplifying the potential impact of these policies on the $1.1 billion Unicorn valuation achieved by Physics Wallah.

These factors collectively shape the ed-tech company market’s trajectory in India, while challenges like mindset shifts and equity in digital access continue to influence its evolution.

Future Of Ed-Tech In India

This brings us to the final section of our blog — the driving forces behind India’s Ed-tech future.

Indu Kumar, Head of Department, ICT, and Training, Central Institute of Educational Technology (CIET), National Council of Educational Research and Training (NCERT), Ministry of Education, Government of India noted,

“Education is an important pillar for economic development, and India’s knowledge economy continues to be one of the largest in the world. We need to embrace modern tools and technology to make education more easily available and securely accessible to everyone.”

The Government of India is currently focusing on making global education more accessible to Indians by leveraging technology. In rural India, approximately 49.3 percent of students possess smartphones, yet a notable 76.7 percent of them predominantly utilize their devices for entertainment activities like gaming and watching movies. Merely 34 percent of these students employ their smartphones for study-related purposes and 18 percent access online tutorials for learning.

With the medium (smartphones) already being present, all that remains is now to make Ed-tech company an exciting avenue for students. But, how?

Introducing Smart dApps

Smart dApps are injecting excitement into the ed-tech landscape by reshaping how education is approached. These innovative applications hold the potential to transform education by offering a decentralized platform for crafting and disseminating educational content.

In the contemporary educational landscape, as per Juraschka’s research, a remarkable 74% of educators integrate digital game-based learning to enrich their teaching methods, with the majority attesting that these games significantly enhance their students’ learning experiences.

Hence, with a dynamic and interactive nature, Smart dApps immersive multimedia learning encounters are determined to captivate students. Beyond this, Smart dApps enable tailor-made learning paths, gamified interactions, and collaborative learning spaces that foster information exchange and community formation. Through the incorporation of Smart dApps into education, a global, decentralized repository of knowledge emerges, accessible to learners across the globe, amplifying the allure of ed-tech for both existing and new students.

Why Ed-Tech Company Should Implement Smart DApps

Imagine a 16-year-old Dipak. He wants to attend Jadavpur University. A prestigious engineering college, of which both his parents and older sister are esteemed alumni, fills Dipak’s family with pride and legacy. But he’s struggling to focus. After 6 hours of school and 8 hours of coaching, Dipak is not motivated, his brain is scrambled, and he’s starting to question if his efforts are worth it.

Dipak’s journey to academic triumph and his coveted college admission came to life with the aid of Edu2om, a cutting-edge ed-tech platform harnessing the prowess of smart dApps to revolutionize the learning experience.

Dipak’s educational voyage took an exhilarating turn when he chanced upon Edu2om. This dynamic platform employed the transformative capabilities of smart dApps, specifically the ingenious Smart dApps, to infuse his learning endeavors with interactivity and immersion. These digital marvels transformed mundane lessons into captivating experiences, allowing Dipak to craft his own unique learning path. Beyond textbooks, he found himself immersed in educational games tailor-made to stimulate his curiosity and elevate his understanding.

But Edu2om’s impact on Dipak extended beyond solitary learning. The platform’s innovative approach enabled him to transcend geographical boundaries and connect with fellow learners worldwide. Through collaborative exercises and discussions, he gained insights from diverse perspectives and formed global friendships that enriched his educational journey.

Edu2om’s fusion of education and technology not only benefited Dipak but also empowered developers. The integration of Smart dApps empowered them to craft a secure and intuitive channel for Dipak to access his learning materials. Furthermore, his accomplishments were seamlessly validated with certificates and badges, adding a tangible layer of recognition to his efforts. Developers were equally enthused, leveraging smart dApps to sculpt immersive learning environments that nurtured students’ success.

Conclusion

India’s education market is vast and evolving, marked by affordability concerns, quality enhancements, and the surge in online learning adoption. While the market is rich with potential, there are obstacles that hinder its growth, necessitating creative solutions.

Amidst these challenges emerges a beacon of hope in the form of smart dApps. These innovative applications, like the ingenious Smart dApps, hold the power to transform education by offering decentralized platforms for creating, sharing, and experiencing educational content. The allure lies in their dynamic and interactive nature, which facilitates engaging and immersive learning experiences. These platforms pave the way for personalized learning paths, gamified interactions, and collaborative environments that foster community and knowledge sharing.

As we look ahead, envision the possibilities: a student like Dipak, who transforms his learning journey through Edu2om’s smart dApps, crafting a unique educational path that intertwines with games, connection, and recognition. Smart dApps have the potential to revolutionize education, breaking down geographical barriers and creating a global knowledge network accessible to learners from all walks of life.

Just as India’s students continue to shine on the global stage, the ed-tech landscape is primed for transformation. We encourage you to step into the realm of smart dApps, where innovation, engagement, and the promise of a brighter educational future await. Embrace the power of technology, join the education revolution, and unlock new horizons of learning for yourself and generations to come.