July 19: During the present epidemic, the lockdown has caused numerous shutdowns, and as a result, one of the only industries that have seen tremendous development is India’s EdTech industry. Within a few months, the platforms had met their long-term commercial objectives. This occurred, in part, as a result of most institutes’ adoption of technology to continue offering education throughout this important period. To meet the high demand, EdTech platforms raised $2 billion in 2020, up from $553 million in 2019. The Indian EdTech industry is currently worth $ 800 million and is anticipated to increase eightfold over the next five years.
EdTech platforms aren’t just for virtual learning; most also provide individualised learning for a stress-free study atmosphere. As a result, every type of learner is enrolling in online courses and learning from home. BYJU’S, the leading educational technology unicorn, acquired 45 million new users in 2020 and earned $46.92 million. Vedantu, another EdTech start-up that primarily serves K-12 students, has seen a 4x increase in sales in 2021, with a current revenue run rate of about $60 Mn. Melvano, a rapidly expanding test prep platform, had a 6x rise in users and a 2x increase in interactions last year.
“The COVID pandemic has pushed the Indian Edtech sector in a hyper-growth trajectory,” stated Taran Singh, CEO of Melvano. A huge portion of this growth comes from Tier 2 & Tier 3 cities, which will play a pivotal role in shaping the Indian EdTech story. The sector will grow 8-10x in the next 5 years, wherein Test preparation will be the fastest-growing segment, growing at 64% CAGR, followed by the K-12 segment. This fast-paced growth will be led by the digitization of coaching centres & mushrooming EdTech startups to cater to the growing need. Having a clear differentiation & product-led growth will act as leverage for startups. For instance, the Melvano app uses a blended approach instead of entirely self-paced online apps, which helps students get a clear path to crack exams. The additional social features like discussions & leader-board help build virality leading to low CAC.”
Taran Singh, an IIT Madras alumni, established Melvano in 2018 and was awarded the Sri Chinmay Deodhar award for ‘Innovative project’ by IIT Madras. There are already over 4,500 active EdTech start-ups in India, and the industry will continue to grow long after the epidemic is gone. According to recent research by PGA Labs and IVCA, India’s education industry would grow from $117 billion to $225 billion by FY25.