Edtech startups in India have raised a record $2.22 billion in 2020 till December 10, according to a study.
Including the current year, startups in the sector have raised a total of $4 billion since 2016. Firms in the segment scooped up $553 million, $805 million, $211 million and $258 million in 2019, 2018, 2017 and 2016, respectively.
While K-12 and test preparation focused companies raked in $1.9 billion of the total this year, firms that offered continued learning solutions, such as career development and corporate training, raised $142 million, the report by Indian Private Equity and Venture Capital Association (IVCA), and PGA Labs, the market intelligence business of Praxis Global Alliance, said.
Titled The Great Un-Lockdown: Indian Edtech, the report said that 92 startups raised capital in 2020, 61 of which were seed-stage deals.
Byju’s and Unacademy raised the most capital, with a total of $2.32 billion and $354 million, respectively, followed by Vedantu at $206 million, Toppr at $107 million and Lead School at $39.4 million.
Additionally, business-to-business (B2B) edtech companies received total funding of $31 million between 2017 and 2020, it said.
“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,” Vaibhav Tamrakar, vice president of PGA Labs, said.
With about 360 million learners in the financial year 2019-2020, education is a $117 billion market in India. The sector is expected to grow two-fold to $225 billion by FY25, the study said. The country spent $49 billion in FY20 on school education, of which primary education comprises 66%, followed by secondary education at 27%.
About $42 billion is spent on supplementary education, which comprises private coaching and test preparation.
Beyond the rapidly-scaling K-12 and test prep segments, startups that offer on-demand learning and vernacular educational resources; B2B and edtech SaaS; automation, ERP and LMS solutions; digital learning enablement; fintech in education; student housing; education with employment and continuous learning; admission support and counselling; AR/VR in education; online STEM learning; and extra-curricular learning are expected to see growth in the near future, the report said.