Indian EdTech Industry – An Overview

EdTech in India

India is home to over 6,950 EdTech startups, of which 7 have achieved unicorn status and is the second largest EdTech market after the US. India houses the second largest population in the world, and has over 500 million people in the age range between 5-24 along with a large school going population of over 250 million students that can benefit the most from advancing Educational Technology.

The Indian EdTech market was estimated to be worth US$2.8 Bn in 2020 and is expected to grow to over US$10 Bn by 2025, growing at an impressive CAGR of 30%.

The EdTech market can broadly be classified into four segments:
  • K-12
  • Test prep
  • Higher learning
  • Continued learning

K-12 EdTech and Test-Prep Tech have received the most funding in total, at US$8.2 Bn and US$6.9 Bn respectively.

There is a robust demand in the country for EdTech solutions (despite the recent funding slowdown and turmoil in the sector) on the back of:

  • Large youth population
  • Increasing Internet user base as a result of greater penetration and cheap data
  • Government initiatives such as- National Digital Educational Architecture (NDEAR), PM eVIDYA, DIKSHA, SWAYAM etc

The EdTech sector has been growing exponentially over the last few years and was only accelerated by the Covid-19 pandemic which sped up the adoption of technology in India’s education sector, a traditionally slow-moving space.

With the pandemic in our rear view, the pace of adoption of tech by the education industry has slowed down (along with a consumerate slowdown in funding) – however, this is not to say the use case has reduced or there is no need for such solutions. There is definitely still a huge market opportunity for this, but the pace of adoption is likely to be more sustainable going forward.

Key challenges to the EdTech Industry are:
  • The market being oversaturated
  • Institutions and educators being resistant to change
  • The limited budget available for digital infrastructure in educational institutions
  • A difference in ideologies between the EdTech startups and the educational institutions
K-12 EdTech:

word image 10475 2 Indian EdTech Industry - An Overview

Companies providing online courses, educational resources, learning platforms, management solutions, teaching resources, and other services for K-12 students, teachers, parents, and administrators

Test Preparation Tech:


Companies that provide inclusive and affordable learning for entrance examinations. Providing students with the ability to study anywhere and anytime, in the language of their choice.

Higher Education Tech:


Companies that focus on making higher education more accessible by offering solutions ranging from making information more accessible, consulting, and even financial assistance.

Continued Learning:


Companies that facilitate learning for people across all ages- ranging from students to even professionals.

Funding & M&A Scenario

The year 2020 experienced increased M&A activity from years past where 20 M&As occurred at an average deal size of US$80 Mn and 2021 was even busier with 35 M&As were carried out at an even greater average deal size of US$112 Mn. In comparison 2022 saw a sharp decline in activity with only 20 M&As at an average deal size of US$6 Mn. EdTech giants like BYJU’S, Unacademy and upGrad were some of the most active acquirers.

Brand Capital, Blume Ventures, Sequoia Capital, Accel and SoftBank Vision Fund were the most active investors and collaborated on multiple large funding rounds, of which BYJU’S US$5 Bn round, Unacademy’s US$881 Mn round, Eruditus’ US$814 Mn round and Vedantu’s US$ 309 round were the largest ones that occurred.

Industry Growth Drivers

EdTech growth drivers

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