Get All Access for $5/mo

Indian Edtech Sector: Funding Dips In 2023, No New Unicorns So Far, 70% Decline In Acquisition And More The report further revealed that most of the funding into Indian edtech startups in 2023 so far was secured in the second quarter

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

The Indian startup ecosystem is reportedly one of the top three funded geographies in 2023 YTD in the edtech space, next to the US. Despite this, this space has reportedly experienced a declining trend in funding, similar to its global counterparts.

According to a Tracxn report released on Monday stated that total funding in the Indian edtech sector fell 48% this year compared to the same period in 2022, and declined by 50% as against the same period in 2021, while the number of funding rounds in 2023 YTD experienced a drop of 77% and 82% compared with the same period in 2022 and 2021 respectively.

The report further revealed that most of the funding into Indian edtech startups in 2023 so far was secured in the second quarter. This space observed funding worth $713 million in Q2 2023, accounting for 73.43% of the total funding raised this year. This is also an increase of 37% compared with the corresponding quarter last year.

Moreover, late-stage investments worth $879 million have been recorded in 2023 so far, contributing to more than 90% of the total funding, which is also a drop of 23% compared with $1.14 billion raised in the same period in 2022 and a drop of 39% from $1.44 billion raised in the same period in 2021.

Early-stage investments worth $75.7 million were recorded in 2023 YTD, an 88% drop from $618 million raised in the same period last year and an 82% drop compared with $414 million raised in the same period in 2021, it added.

The report also found that no new Unicorns have so far emerged in this sector this year, as against two new Unicorns in the same period last year. Additionally, 2023 YTD witnessed seven acquisitions, a 70% decline compared with 23 acquisitions in the same period in 2022 and 19 acquisitions in the same period in 2021.

Furthermore, among Indian cities, Bengaluru takes the lead in terms of total funds raised till date, followed by Mumbai and Gurgaon. EdTech startups in Bangalore have raised a total of over $8 billion as of August 7, 2023, followed by Mumbai ($2.5 billion) and Gurgaon ($497 million), the report revealed.

"Despite the current challenges, there are reasons to remain optimistic about the edtech sector's role in transforming education in the country. With the right support and a continued commitment to innovation, it has the potential to drive meaningful change in India's educational landscape," said the report.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

Aadhaar-Driven Financial Inclusion: Catalyzing Regional Economic Growth in Rural India

The emergence of digital tools such as the Aadhaar-enabled Payment System (AePS), which uses the biometric-based Aadhaar identity system for cash transfers and regular banking tasks, has become a tool to bridge the gap and improve financial inclusion

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.