Why Is Edtech Industry Gaining Popularity & Funds From Across The Globe?
Edtech giants like Byju’s, Unacademy, UpGrad, Toppr, Vedantu, Udemy, etc. have seen unparalleled growth due to huge demand to fulfill the educational needs of students at various stages of their academic careers.
In the modern world, where abbreviations keep getting shorter and new terms keep getting coined every single day, Edtech is one such prominent example. It is just bizarre how a vast majority of the population hadn’t even heard this term only a decade ago, and today everyone wishes to get involved in this space. This is a direct consequence of the advancement in technology. For the uninitiated still, Edtech refers to Education Technology that revolves around an online and digital form of classrooms and courses.
As a matter of fact, reputed world-class universities have started handing out major degrees solely through the mode of online education. This marks a clear departure from the age-old traditional form of education where the curriculum is set in stone and one has to attend college within fixed hours and location. The students, nowadays, have the option of choosing whatever they wish to study, along with flexible timings of when they want to study and lastly, irrespective of where they want to study it from.
Such massive transformational measures stem from the necessity to stay indoors while waiting for this horrendous pandemic to reach its culmination. If there is anything positive we have managed to sequester out of this unique time in our history, it is the fact that anything could be done efficiently from the comfort of your home using technology.
This has incubated Edtech companies that have achieved the Unicorn (companies worth $1 Billion) status within a brief passage of time. India has seen a mammoth growth in this space in a matter of half a decade. Edtech giants like Byju’s, Unacademy, UpGrad, Toppr, Vedantu, Udemy, etc. have seen unparalleled growth due to huge demand to fulfill the educational needs of students at various stages of their academic careers. Resultantly, this sector has seen an unprecedented flow of investments from across the globe.
Investment in Edtech Companies
Being opportunistic is the second nature of investors. Realizing the potential of this massive pandora’s box that was about to get opened, big investors from all over the world jumped on this chance to ride the wave of a humungous financial boom in this newly-born sector. Also, it is easy to understand that this was not a bull run that might end abruptly. People are mature enough to see that this model of education in this fast-moving world is a sustainable business. Given that you back the right company, the business will most likely see no end in the foreseeable future.
Investment firms from the US, Europe and China are among the torchbearers to invest heavily in the Indian Edtech startup ecosystem. These firms were involved from a nascent stage which has resulted in these Edtech companies achieve incredulous net worths in a record time. The central government is also beginning to come up with policies to support the Indian startups and make it easier for Indians to invest in them. The potential there is unfathomable and you must have your investments ready if you want to reap the benefits of being an early bird still.
Importance of Edtech Startups
People have realized that education has witnessed one such phase of metamorphosis from where it is almost impossible to go back. Even after the schools, colleges and other educational institutes open up again, this trend of online education will keep gaining more and more followers. The sheer reason for that is the fact that one can enroll himself/herself in any course he/she wants, irrespective of where on earth it is situated and learn multiple things from the comfort of the home.
The future, anyway, belongs to the candidates who have a varied set of skills and can multitask as opposed to specified knowledge. This is possible only through online education where you can participate in a course that is being delivered from the US, for instance, and simultaneously attend another course that is originally being offered from Australia, while you are residing in India. This has opened unique pathways which will ensure that a student of tomorrow is a global citizen and has experienced multiple branches of studies.
Future of Edtech
Having seen this massive outburst of students opting to study through these Edtech companies, many new players are beginning to enter this field with disruptive ideas to explore the 10.4 Billion Dollars Market (by 2025 as per reports). We are almost in Phase 2.0 of the online Edtech space. They are offering unique courses at lower prices compared to some of the giants in the firm to cater to the students from remote parts of the country who can’t afford to subscribe to the expensive fees of big firms.
With about 70% of the population residing in small towns in India, this could be even grander growth potential in this untapped demographic section. As a result, reputed media portals like Yourstory Media want to try their hands in this field. They have established their own versions of Edtech verticals namely Yourstory Education. Offering, unique courses related to the startup culture like Product Management, Funding, Marketing, Investor’s Mindset, Pitch Presentation, etc. These, as one would imagine, are not your orthodox subject modules but relevant topics and theme to nurture an entrepreneurial mindset from an early stage. The future belongs to entrepreneurs and the sooner they will get exposed to these ideas in the form of formal education, the better it will be for the economy.