Is the EdTech bubble in India about to burst? – The Times of India Blog

The EdTech sector has been growing exponentially over the last few years, and even more so after Covid-19 hit. A Blume Ventures report (note: this report is based on rough assumptions) suggests…….

<!–Uday Deb

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The EdTech sector has been growing exponentially over the last few years, and even more so after Covid-19 hit. A Blume Ventures report (note: this report is based on rough assumptions) suggests that the EdTech market was close to $750mn in 2020 and will hit $4bn by 2025. This is a sheer drop in the ocean of the larger education market, estimated at $135bn in 2020 by the same report. The market starts from early learners who are in pre-school to continuous learners looking to upskill themselves. 

The Covid-19 pandemic accelerated the adoption of technology in India’s education sector, a traditionally slow-moving space. Investors started pouring funds into a sector they were otherwise wary to touch, and India saw ~$0.5bn of funds flowing into EdTech in 2019, and $4bn flowing into EdTech in 2020 and into 2021. We now have 5 EdTech unicorns. All this while India grappled with one of the first education crises in our history, with millions of students out of school, and the inequality divide burgeoning. 

The question remains, where is this sector going? A few different factors are important to consider as we evaluate the space and its players, and their long-term impact on education in India. 

Valuation vs. Value: Historically, education has been about quality. Parents are willing to walk that extra mile, or relocate to reach better schools for their children. Currently, the EdTech market reporting is primarily about the valuation of EdTech companies. Little is being talked about actual learning outcomes, customer satisfaction, and the impact that these courses have on the student. I had to scan the several reports by investors and different players multiple times to try and find any impact or learning comparisons, or detailed customer feedback on any of the players. The long-term success of any education player will likely be based less on how much money investors are willing to pour into their advertising, and on whether customers are actually satisfied with the products.

Certificates vs. Outcomes: Most “informal” players in the education space, and especially those in the higher education and employability fields are focused on credentialing and certification. Very few of these certifications lead to actual employment or a degree. Only a handful of players even attempt to give a soft placement guarantee. If the sector evolves towards actual career outcomes, it will create a more …….

Source: https://timesofindia.indiatimes.com/blogs/voices/is-the-edtech-bubble-in-india-about-to-burst/

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