One great outcome that has arisen out of the rapid growth in technological capabilities is : It has enabled a level playing field for almost everyone. Anybody who has access to the internet (India has the cheapest internet rates in the world) can learn online. It is worth noting that along with technology growth, The Pandemic too has accelerated the growth in the Edtech Sector.
This democratisation of access to information and learning has in-turn been monumental in rapid growth of technology and consequently, all other walks of life It is super cool when someone from a remote village can learn from best teachers in the world at a nominal cost if not freely.
All these factors culminated in the rapid rise of the Edtech Sector in India. It is estimated that India’s online education market is expected to be worth more than USD 3.5 billion by 2022—almost five times the USD 735 million it was worth in 2019, according to a new report by Mumbai-based edtech-focused VC firm BLinC Invest.
Here’s the part which I feel is Interesting and worth pondering :
The biggies are getting bigger by acquiring most of the small players which is following the pattern of how certain institutions dominated the physical classes space (Classic case of history repeating itself) and when the players become too big, the industry is no more edtech but gets converted to a commodity industry.
The companies are focusing on chasing rapid short term growth vs profitability by spending heavily on huge marketing and with little clarity on a sound business model. It may eventually turn out to be a perfect recipe for disaster for most of these companies.
Here’s one example, Byju’s may be planning to go public with an astronomical valuation at 48 Billion Dollars (Which was at 18 Billion Dollars 2-3 Months back ) One must wonder, what has suddenly changed for the company that the valuation has almost become 2.5x
Summary : By focusing on chasing rapid short term growth and VC funds and eventually going public at outrageous valuations defying all the theories of investment, Most of the Edtech companies may be raking in huge short term gains but the path to long term sustainability becomes painfully tough. I guess we can only hope that “Out of Unimaginable Chaos ,The clarity towards Sustainability shall emerge.”
I think that the edtech space in India is very predatory in nature. They often employe tactics which include pressurising the parents to pay large sums of money and also to give them a false hope that their child is very bright and can easily crack any competitive exam but with small assistance from their end, so that the parents enroll them in the course.
Investments to level up its offline game, sponsorship, rising valuations, Company seems to bridge all the gaps in the Edtech industry through its platform at a rapid pace. Already being the sponsor for Indian team, this is one incredible news!
And the most important. What if the Government decides to crackdown on Ed Tech like China? Karti Chidambaram, an MP from Tamil Nadu has already raised the issue in Parliament that these firms are exploiting the parents and milking them to the maximum. Even the Consumer Affairs Ministry has issued some warnings to these companies.
Yeah , I would like to see the socialist approach in Education sector. There should be cap. in fees. In most of the developed countries education is free and edtech sector has also lots of regulation. It would be good to see more regulation in this space as well. In last 8- 10 years education fees have sky rocketed . Education is fundamental right and it should not have capitalist approach. I would love to see crackdown on these Edtech like china!
That depends on case to case. For example, in case of Engineering, if a candidate is getting a seat in BITS-Pilani, then naturally he would love to accept that offer.
Indian edtech is the best. As, when we are trying to be more and more developed in terms of macro level economy, we will continuously move towards service sector and knowledge based systems. Here comes the major role of Edtech to teach India, and make India a KPO of the world.
I think that this industry might not survive in years to come. This industry has become very controversial, in my opinion. I would stay away from edtech.
Investing in the edtech industry might seem cool these days because of the growth of this sector. But there are several cases of misleading advertising and marketing by these companies. Edtech is getting closer to its doomsday, and that day can come sooner or later. Edtech should not be touched, in my opinion.
It is super cool when someone from a remote village can learn from best teachers in the world at a nominal cost if not freely.
