Global education market size is worth $6 Trillion. India is positioned distant 3rd after China and the US at $ 215 billion in terms of the market size in education sector.
Indian EdTech industry is estimated to be worth $2 billion in 2021 and is estimated to reach $5 billion by 2024. The Indian EdTech industry is categorized as below:
Note 1: Estimated for year 2021; Source: Study on online Education by KPMG & Google
India is moving towards digitization at a rate of 40% with emergence of large startups such as Byju, Unacademy, Vedantu and others, however it still is lagging behind when compared globally and benchmarked against its population. EdTech sector has also attracted large number of renowned investors since past 5 years such as Sequoia Capital, Blume Ventures, Gray Matters, Nexus Ventures, General Atlantic, among others. Indian EdTech startups have raised more than $1.8 Billion from 2014 to 2019; around 14 EdTech companies raised investment amid coronavirus pandemic. K-12 & Exam Prep Segment seen the maximum growth.
KEY GROWTH DRIVERS OF EDTECH INDUSTRY IN INDIA
There have been several factors that are driving the growth of the EdTech industry especially after COVID:
- Campaigns by MHRD, India like Bharat padhe online, SWAYAM & Digital India will make way for the infrastructure needed by students to study online with the aim to transform India into a digitally empowered society.
- PM e-VIDYA: A multimode access to digital/online education with DIKSHA, QR coded energised textbooks for school education, Earmarked channels for education, Extensive use of Radio, community radio and podcasts and Top 100 Universities allowed (automatically) to start online courses
- Launch of Manodarpan (psychological support), New National Curriculum and Pedagogical Framework for school, early childhood and teachers and National Foundational Literacy and Numeracy Mission
- SWAYAM PRABHA DTH channels to support and reach those people not having access to the internet.
- 200 new textbooks added to e-Paathshaala
Currently, 564 million Indians have access to the internet but its steady growth, especially in semi-urban and rural areas, provides high potential for the proliferation of online education. Google KPMG report estimates nearly 1.2 billion mobile internet users and 1 billion smartphone users in India by 2021
Largest Education Market base: India has 1.5 Million number of schools, 900 Universities and 39,071 Colleges
Over $2 billion is raised in funding in last 5 years in Indian Education sector, while Byju is driving major fundraising activity. Byju has raised more than 60% of the total fundraising in Indian Education sector.
Source: Secondary Research; MHRD,IBEF, Inc42
Contribution: Pratyaksh Dang working as an intern at FundTQ. He is a Business Economics graduate from College of Vocational Studies, University of Delhi.
