Indian Edtech Startups Received Investment Worth $2.22 Bn In 2020: Report The report states that India is one of the largest markets for education with 360 million learners in FY20 and is home to some of the largest edtech companies with a global investor base.

The Indian education sector is a $117 billion market with more than 360 million learners in FY20. According to a report titled - The Great Un-Lockdown: Indian Edtech by the Indian Private Equity with Venture Capital Association (IVCA) and PGA Labs, of the $117 billion, $49 billion is spent on school education, of which primary education comprises 66 per cent of the spend, followed by secondary education at 27 per cent. Whereas $ 42 billion is spent on supplementary education, this primarily comprises private coaching and test preparation.

Imposed lockdown due to the spread of COVID-19 has increased the demand for edtech products in India manifold. 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. Also, the recently introduced National Education Policy 2020 is expected to give a boost to edtech due to the increased focus on concept-based learning for students.

According to the survey, the education and edtech market can be divided into five segments of pre-K, K-12 and test preparation, higher education, continued learning, and B2B edtech.

The survey further revealed that Indian edtech startups received a total investment of $ 2.22 billion in 2020 alone, compared to $ 553 million in 2019. Moreover, 92 entrants received funding in 2020, out of which 61 players received seed funding.

In this wide pool, BYJU'S and Unacademy emerged champions as they have raised the most capital of $ 2.32 billion and $ 354 million in past five years, respectively the report stated. Whereas, B2B edtech is not far behind as it has received total funding of $31 million in 2017-2020.

"EdTech is one sector which goes in sync with the Moore's Law, with the advancing tech, education technologies in India have become a change maker. This report covers investment activities across edtech and analyses what the future of innovation holds in the next decade," said Rajat Tandon, president, IVCA. "Whereas these are testing times for so many entrepreneurs globally, edtech in India has emerged a clear winner, this report also projects how new unicorns are being presented globally, putting India yet again on the Globe in regards to tech, innovation, and digital consumption."

The survey said that the education sector has received growing attention from the Government with budgetary allocation increasing from $ 11.3 billion in 2018-19 to $ 13.2 billion in 2020-21. The report states that India is one of the largest markets for education with 360 million learners in FY20 and is home to some of the largest edtech companies with a global investor base.

"Large shifts in learner requirements are reshaping the education and edtech landscape globally. With an increase in focus on self-paced learning, an informed selection of tools/aids on top of better awareness and accessibility, and the idea of continuous learning beyond schools and colleges via professional education courses are driving innovations in the way learning content is being a consumer and delivered in India," added Madhur Singhal, practice leader, education, employment and entrepreneurship, Praxis Global Alliance, in the statement released.

The authors of the report have also stated that the education sector in India is quite fragmented with various investors and inventors across segments.

"Digitization of educational institutions and learning ecosystem, continuous learning for employability and professional career growth, and student-lifecycle services such as student housing and fintech in education are some of the whitespaces where the next edtech unicorn can emerge from India in the next decade," commented Vaibhav Tamrakar, vice president, PGA Labs.

The report further elaborated that the past few years have witnessed the emergence of the edtech sector with supplementary learning opportunities for students and working professionals. The growth of the edtech sector has coincided with increased internet penetration in the country, particularly in tier-III/IV cities and villages. The sector has also seen increased investor activity due to the tremendous growth potential of the edtech inventors in India. Segments such as online tutoring and competitive exam preparation have witnessed an increase in investments by private equity and venture capital funds in the past few years.

The education market is expected to grow twofold to $225 billion by FY25 at a compound annual growth rate (CAGR) of 14 per cent over FY20-25, the report said.