India's market for online education is predicted to reach greater than 3.5 billion by 2022, which is five times more than the USD 735 million it generated in the year 2019. This is according to a recent report from Mumbai-based education technology VC business BLinC Invest. 

Although edtech services for students in the grades of 1-12 are predicted to grow 6.4x to make the dollar 1.7 billion markets at the end of the year. The post-K12 market will expand 3.7x to be worth USD 1.8 billion, according to the report, which was shared exclusively by KrASIA. Overall, the market for edtech is projected to cross thirty billion dollars by the year 2030.

The growth is being accelerated by the increase in the number of smartphone users as well as the shift towards digital learning models. The sector was already experiencing significant growth but due to the COVID pandemic causing lockdown the edtech sector has seen an exponential increase.

Investment in Edtech Industry in India

In light of its expansion, the edtech industry in India has attracted the attention of investors around the world. In the year 2020 the edtech industry was able to receive $16.1B in VC investment, a 32x boost from the 500M it received in 2010.

India has been ranked one of the top three countries worldwide, following China as well as the USA to receive the highest amount of venture capital financing in the edtech industry. The Indian Edtech industry was able to receive the sum of 2.1 billion during the year 2020.

The online education offerings available for the K-12 age group (Classes 1-12) are expected to grow 6.3X in 2022, resulting in a $1.7 billion marketplace. In addition, the post-K12 market will expand 3.7X to reach $1.8 billion.

Why is the Edtech Industry In India Continuously Growing?

Let us learn about the factors of the growth of edtech in India.

1. Low Cost of Online Education

In comparison to traditional education (school or college), online learning is cheaper. There are many educational platforms that are available to students to gain access to high-quality education at an affordable price. Due to the affordability aspect students of various income levels and social classes can have access to a high-quality education that includes stunning images and skilled teachers.

2. Government's Digital Initiative To Promote E-learning

The Government of India is doing its best to encourage online education in India through initiatives such as the SWAYAM program and DIKSHA. Additionally, because of the restrictions of lockdown in the country, the Indian government has also been encouraging the head of Higher Educational Institutions to switch to online learning methods and ensure that classes are not interrupted.

3. Growing Internet User-Base

There are about 624 million internet users active in India at the time of February 2021. This active user base offers the potential for huge growth for those involved in edtech. Particularly in cities that are Tier 3/4 sectors like online tutoring and preparation for competitive exams could see significant growth. With more people being part of the intended market, every sector of the edtech industry has plenty of growth potential.

4. Increasing Number of Edtech Startups

There are over6,950+ EdTech companies in India according to Tracxn, a website that tracks private and startup businesses. Making use of technology to provide the most effective services, these EdTech companies offer innovative solutions for classrooms and adaptive learning management systems, and collaborative platforms.

These factors, along with an increase in investment, upgrading of offerings, acquisition and the rapid growth of players changing as well as adding new students is driving the movement towards digital learning across the country.

The development of the edtech Industry in India is predicted to come from higher education, K-12 as well as upskilling categories. With the increasing adoption of edtech and a new perspective for educational opportunities after COVID, the industry will be able to grow faster than it was anticipated.

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