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EdTechReport Final PDF
EdTechReport Final PDF
OF EDTECH
IN INDIA
Decoding The $10 Bn
Market Opportunity
Report 2020
POWERED BY
Table Of
Contents
03 Executive Summary 26 Financial Performance Of India’s Top Edtech Startups
60
Year On Year Funding Trends
Stage Wise Funding Overview Emerging Trends
Sub-Sector Wise Classification
Investor Participation Over The Years
61
India’s Top Edtech Investors
Methodology
Executive
Summary
4,450 37 Mn 8 Out Of 38 2
Edtech Startups In India Paid Users By 2025 Edtech Startups Are EBITDA Positive Unicorns
Edtech
Introduction Detectable Critical Mass New Normal Key Drivers
Sub-Sectors
Buzz and noise in the market A validated business model in play A significant customer base On a par with a mature industry Availability of known players
B Certification
Convenience & popularity
among working professionals
C
Convenience
Skill
Growing interest in upskilling
Development
Price advantage
D
Parents' propensity to pay
E Increasing competitiveness
among children
Time
743.19 Mn (As Of March 2020) 1.39 Hours (2020) $161 (As of Q2 2020)
Total Number Of Internet Subscribers Average Time Spent On Digital Media Average Selling Price Of Smartphone
$10.00 $10.4 Bn
A National Sample Survey (NSS) on
Household Social Consumption stated
that there is a 26% surge in out of
$8.00 pocket expenditure on education
-25)
020 between 2014 to 2018.
Market Size (In $ Bn)
GR (2
CA
39% $7.5 Bn
$6.00 In the urban region, the course fee
$5.9 Bn
surged 47% from Rs 5,544 in 2014 to
Rs 8,152 in 2018. This statistics
$4.00 $4.6 Bn involved an average of (2,000 or
$3.6 Bn
20,000?) Indian students spread
across pre-primary to college levels.
$2.00 $2.8 Bn
40
37 Mn
35
8.59
Estimated Number Of Paid Users (In Mn)
30
28 Mn
25 6.61
22 Mn 12.14
20
5.08
17 Mn 9.34
15 3.91
13 Mn 4.77
7.18
10 Mn 3.01
10 5.53 3.67
2.31 4.25 2.82
3.27 2.17 11.36
5
6.72 8.74
5.17
3.06 3.98
0
2020 2021 2022 2023 2024 2025
$3000
$2669
Annual Purchase Ticket Size Per User
$2000
$2022
$1652
$1532
$1275
$1000 $879 $1161
$981 $749 $892
$666
$580 $755 $749
$599
$446 $529
$445 $495
$374 $409
$338
$231 $279
$0
2020 2021 2022 2023 2024 2025
Year
Note: The market size is a calculated as (number of users* average ticket size of payment).
Both the numbers are calculated using KPMG calculations for the same as the base.
Source: Inc42 Plus
© Inc42 Media | not for distribution 12
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THE EDTECH
Investment Trends
Indian Edtech Startups Secured A Total Funding Of $2.2 Bn Across 346 Deals
Between 2014 and H1 2020, nearly 79% ($1.7 Bn) of the funding went into online test preparation startups
$800
$600
Funding Amount (In $ 100 Mn)
$400
$200
$0
2014 2015 2016 2017 2018 2019 H1 2020
Test Preperation Online Certification K-12 Skill Development Enterprise Solution Others
80
60
25
11
Deal Count
40 12 10 2 8 5
13
4 5 6
6 13
8 5 4
6 6 10
6 6 11
20 6 9 12
7 8
5 2
6 6 5 5 4
1
8 11 20 11 11 11 16
0
2014 2015 2016 2017 2018 2019 H1 2020
Others Enterprise Solution Skill Development K-12 Online Certification Test Preparation
Others
2.4%
42
Skill Development 57 54 Test Preparation
78.8% Others
2.5% 1776
12.1% 48 Test Preparation
135
K-12
25.4%
6.0% 88
61
K-12
40 17.6%
Enterprise Solution
11.6% 48
Skill Development
13.9%
80
Number Of Unique Startups Funded
60
22
9
40 10 10 8
10 2 5
6 4 4 5
5 12
6 6 8 10 4
20 6
6 6 10
9 7 10 7
5
5 6 5 4 2
5
1
7 9 16 9 7 10 12
0
2014 2015 2016 2017 2018 2019 H1 2020
Others Enterprise Solution Skill Development K-12 Online Certification Test Preparation
200
Average Ticket Size Of Edtech Funding (in $ Mn)
$159,615
$157,895
150
$136,364
$102,778
100
$90,909
$62,500
50 $47,619
$31,176 $43,478
$52,632
$31,579
$25,938
$18,214
0
H1- H2- H1- H2- H1- H2- H1- H2- H1- H2- H1- H2- H1-
2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020
Halves
15.00
Median Funding Amount (In $ Mn)
10.00
5.00
0.00
2014 2016 2018 H1 2020
Year
150
100
Unique Investor Count
126
108
50
89
76 70 74
44
0
2014 2015 2016 2017 2018 2019 H1 2020
Year
Note: Data between 2014 and H1 2020 © Inc42 Media | not for distribution 22
Source: Inc42 Plus
Mergers And Acquisitions In Edtech
8
Others
18.6% Enterprise Solution BYJU'S $300 Mn acquisition of WhiteHat Jr. is
34.9% the biggest edtech M&A deal in India as of
now.
15
$300 Mn $120 Mn
$50 Mn $5 Mn
8 Agnostic
7 Test Preparation
6 Agnostic
Skill Development,
6
Test Preparation
5 Agnostic
4 Agnostic
2 K-12
Note: Data from 2014 to H1 2020 © Inc42 Media | not for distribution 25
FINANCIAL
PERFORMANCE
OF INDIA’S TOP
EDTECH
STARTUPS
The Aggregate Revenue Of Indian Edtech Test Preparation And Online Discovery
Startups Doubled Startups Witnessed The Highest Surge
Between FY18 and FY19, the aggregate revenue surged 2.1x In Revenue Over The Year
Test preparation and online discovery startups saw the highest revenue
$400 surge — 153% and 58%, respectively
$303 Mn 100%
$300
Aggregate Revenue (In $ Mn)
90%
80%
2.1x
Test Preparation
89.33 225.74
100%
Aggregate Expenses (In $ Mn)
$300 98%
90%
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 29
Revenue Of India’s Top Edtech Startups
Startup Name Total Revenue FY19 Total Revenue FY18 Startup Name Total Revenue FY19 Total Revenue FY18
$616,787 $166,470
$452,133 $240,893
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 30
Expenses Of India’s Top Edtech Startups
Startup Name Total Expense FY19 Total Expense FY18 Startup Name Total Expense FY19 Total Expense FY18
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 31
Expenses Of India’s Top Edtech Startups
Startup Name Total Expense FY19 Total Expense FY18 Startup Name Total Expense FY19 Total Expense FY18
$845,432 $1,049,899
$712,046 $278,559
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 32
BYJU'S Emerged As The Most Frugal Edtech Startup In FY19
BYJU'S expanded its revenue by $123 Mn over FY18 to FY19 whereas the the expense grew by $116 Mn
BYJU’S 98%
Foradian 107%
Disprz 115%
Springboard 121%
Simplilearn 122%
Imarticus Learning 123%
AEON Learning 133%
Collegedunia 136%
Edureka 136%
Gradeup 137%
Online Tyari 146%
Vedantu 148%
Embibe 150%
Smartivity Labs 153%
Indian Edtech Startups
Flipclass 155%
CueMath 157%
Leverage Edu 157%
Meritnation 161%
Avanti 164%
Note: A number greater than 100%
Testbook 165% signifies that the company has
EduPristine 169% higher expenditure than total revenue
iNurture 178%
Flintobox 178%
TOPPR 184%
Eduisfun 185%
Univariety 188%
Coursera 191%
Impartus 193%
XploraBox 195%
CollegeDekho 196%
Unacademy 201%
Educational Initiatives 203%
Math Buddy 203%
Jigsaw Academy 211%
Pariksha 220%
GeNextStudents 226%
Doubtnut 713%
AdmitKard 754%
0 200 400 600 800 1000
Expense as % of Revenue
Note: The analysis is based on the financial data of top 38 edtech startups in India | INR to USD Exchange Rate: 69.4
© Inc42 Media | not for distribution 33
Source: Inc42 Plus, MCA
Indian Edtech Startups’ Total Advertising Top Advertisers In Indian Edtech
Spend Stood At $82 Mn Ecosystem
Indian edtech startups recorded a 2.3x hike in advertising and marketing Startup Name FY18 FY19 Times Surge (x)
spends between FY18 and FY19
$26,343,818 $63,533,833 2.4
$400
Aggregate Advertising & Marketing Expenses (In $ Mn)
$82 Mn
$1,473,737 $2,403,683 1.6
$300
$200
$1,421,901 $1,833,411 1.3
$36 Mn
0
FY18 FY19 $523,425 $1,171,033 2.2
Note: The analysis is based on the financial data of top 38 edtech startups in India
$338,477 $610,597 1.8
INR to USD Exchange Rate: 69.4
Source: Inc42 Plus, MCA
© Inc42 Media | not for distribution 34
Financial Performance Snapshot
Only 8 Out Of Top 38 Edtech Startups Were EBITDA-Positive In FY19 Median Revenue Surge Is Higher Than Expenses For Indian
Edtech Startups
EBITDA Positive
21%
8 0% 20% 40% 60% 80%
FY18 to FY19
Note: The analysis is based on the financial data of top 38 edtech startups in India
INR to USD Exchange Rate: 69.4
Source: Inc42 Plus, MCA © Inc42 Media | not for distribution 35
EBITDA Of Top Indian Edtech Startups
Startup Name EBITDA FY19 EBITDA FY18 Startup Name EBITDA FY19 EBITDA FY18
-$40,072 -$111,268
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 36
EBITDA Of Top Indian Edtech Startups
Startup Name EBITDA FY19 EBITDA FY18 Startup Name EBITDA FY19 EBITDA FY18
-$1,612,392 -$414,986
-$1,654,179 -$51,556
Note: INR to USD Exchange Rate: 69.4 © Inc42 Media | not for distribution 37
10.8x Surge In BYJU’s Valuation In A Span Of Three Years
As of 2020, BYJU’S is the most valuable edtech startup in the world
$12.00
$10.8 Bn
$10.5 Bn
$10 Bn
$10.00
$8 Bn
$8.00
Valutaion (In $ Bn)
$6.00 $5.7 Bn
Series H-III Series I
Series H-II
$4 Bn
$4.00 Series H
Series G
$2 Bn
$2.00 Series F
$1 Bn Series E
Series D
$0.00
25 Jul 17 29 Sep 2018 11 Dec 2018 21 Jun 2019 9 Jun 2020 7 Feb 2020 26 Jun 2020 8 Sep 2020
Source: CB Insights
Note: This does not include all funding rounds of the copy © Inc42 Media | not for distribution 38
Unacademy’s Valuation Surged 2.8x In A Span Of Six Months
From $510 Mn in February 2020 to $1.45 Bn in September 2020
$1.50 $1.45 Bn
$1.00
Valuation (In $ Bn)
Series F
$510 Mn
$0.50
Series E
$200 Mn
$50 Mn $100 Mn
Series B Series C Series D
$0.00
13 Sep 2017 16 Jul 2018 26 Jun 2019 19 Feb 2020 2 Sep 2020
Note: This does not include all funding rounds of the company
© Inc42 Media | not for distribution 39
EMERGING
TRENDS IN
CUSTOMER
EXPERIENCE
POWERED BY
Edtech startups, across the globe, are witnessing a growing demand, not only from students whose classes have been shifted
online but also from those who now have enough time for reskilling and upskilling, given the unprecedented circumstances.
Earlier this year, Khan Academy’s online traffic grew more than 2.5 times almost overnight. The company reported over 1,200%
increase in parents contacting the platform and more than 750% increase in contacts from teachers. By leveraging automation,
self-service and its vibrant community, Khan Academy built a resilient support operation that could handle the accompanying spike
in support volume. Similarly, Teachable took to adding chat seats and turned on the Answer Bot to handle nearly 80% increase in
support volume in post-COVID times.
Given the volatility and shifting customer demands, businesses need to adopt a data-centric and agile approach to build a
KT Prasad competitive edge through customer experience (CX). Although there is no magic formula for faster growth, our Startup CX
MD and RVP Sales, India &
Benchmark Report, which looked at more than 4,400 startups worldwide, found a clear link between better CX and faster growth.
SAARC, Zendesk
Of course, good service alone cannot guarantee success. But continuous engagement with customers often results in a product
that fits their needs. What’s more, good customer service can earn you loyal customers for years to come.
Edtech startups should remember the following when it comes to customer support:
2500
2000
1500
Avg. Ticket Volume
1000
500
0
March 1, 2020 April 1, 2020 May 1, 2020 June 1, 2020 July 1, 2020
Week
Source: Zendesk
© Inc42 Media | not for distribution 44
WhatsApp: The Next Big Customer Support Channel
Global growth in WhatsApp support conversations currently stands at 111% since February, followed by text/SMS
(a distant second at 15%), social media (up 11%), and chat (up 10%))
250% 248%
200%
139%
150%
97%
100%
66% 60%
59%
50%
26% 24% 30%
13% 9% 9% 7% 9% 10%
5% 4% 3%
0%
-6% -1% -6%
-14% -12% -13% -17% -17%
-50%
-51% -52%
Source: Zendesk
© Inc42 Media | not for distribution 45
Self Service: The Future Of Customer Support
Help centres tame spiking tickets by empowering customers to find quick answers
200%
With higher-than-normal
ticket averages seemingly here
150% to stay, many companies are
finding success with help
centers.
100% 195%
149%
This is especially prominent in
117%
sectors such as education,
50%
78%
remote work and fitness. Both
70%
49% remote work and education
30% 39%
24%
16% 19% 23% (learning) platforms saw a
6% 8%
0%
Fitness Remote Work + Groceries Online Health Food Delivery Ecommerce Retail
149% rise in help centre views.
Learning During the same period,
tickets rose only 24%.
Growth In Help Centre Views Growth In Ticket Volume
Source: Zendesk
1500
1000
1497
500
833
533
431
358
0
Word Of Teacher/ UI/UX Brand Name Advertising
Mouth Instructor Experience
Note: Based on survey of 90,591 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus
1499.7 1118
1488.1 838
1425.6 580
1342.2 459
1191.2 370
1059.5 318
Note: Based on survey of 90,591 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus
© Inc42 Media | not for distribution 49
Unacademy’s Advertising Campaigns Primarily Focusses On Its Educators’ Efficiency
1186 1155
788 758
529 532
428 431
359 360
307 310
Note: Based on survey of 90,591 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus
© Inc42 Media | not for distribution 51
The Core Message Of upGrad’s Campaigns Focusses On Course Value Creation And
Adding Value To Its Certification Partners
Features 596
Note: Based on survey of 90,591 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus
© Inc42 Media | not for distribution 53
Microsoft Teams Vs Google Meet Vs Zoom: Online Learning Experience
Microsoft Teams’ Online Teaching Tools Emerged Microsoft Teams Emerged As The Top Solution
As Most Helpful Among Educational Institutes
Google Meet’s user experience ranked the best Compared to Google Meet and Zoom, Microsoft Teams has wider reach
among institutions
1250
1231
1000
Helpful Teaching Tools
750 758
500
555
250
1498 555
1467 758
1260 1231
Note: Based on survey of 11,283 people, including teachers, students and parents
© Inc42 Media | not for distribution 54
Source: Clootrack, Inc42 Plus
What Matters Most In Adoption Of K12 Edtech Platforms?
Availability Of Subjects Plays A Key Role In BYJU’S Most Effective In Online K-12 Learning
Influencing Customer Decision To Pay For On both parameters, user sentiment for BYJU’S and Toppr are superior
K-12 Solutions compared to their peers
1500
Key Category Drivers (0 to 1,500)
1000
500
907
500
652
250
476
307
Note: Based on survey of 27,447 people, including teachers, students and parents
© Inc42 Media | not for distribution 55
Source: Clootrack, Inc42 Plus
Online JEE Learning: What Matters?
What Drives Purchase Of Online JEE Toppr Tops Learning Effectiveness Score In
Learning Solutions? Online JEE Learning
Factors such as doubt solving, faculty are the key drivers for Doubtnut tops doubt solving in online JEE learning solutions
customers when choosing online JEE learning solutions
1000
1500
750
1000
500
500
845
250 502
361 0 250 500 750 1000 1250
Note: Based on survey of 10,734 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus © Inc42 Media | not for distribution 56
Online NEET Learning: What Matters?
The Quality Of Faculty Has Driven Online Vedantu Most Effective For Online Medical
NEET Learning Adoption Entrance Preparation In India
Doubt solving and learning effectiveness also play a significant role for Vedantu tops the charts in terms of learning effectiveness,
medical aspirants in India while choosing platforms for online NEET learning Unacademy is perceived to have a superior faculty
1000
1500
Key Category Drivers (0 to 1,500)
1000
500
871
500
602
250
422
266
0 250 500 750 1000 1250
117
0 Faculty
Faculty Doubt Learning Online Test App User
Solving Effectiveness & Quiz Experiences
Note: Based on survey of 5,042 people, including teachers, students and parents
Source: Clootrack, Inc42 Plus © Inc42 Media | not for distribution 57
Education Or Healthcare:
Where Does A Typical
Indian Family Spend More?
Facebook has partnered with the Bengaluru-based Startup Village Collective Digital
Learning Platform to introduce the AR curriculum.
Growth Of Hybrid Learning Platforms Value Added Services With Regular Courses
Online learning platforms lack real-time interactions between instructors and Online learning platforms are in a tough race and they constantly offer differentiated
students, which may hinder the adoption of online education. products to their target audience, mostly by providing value-added services with
regular courses.
To overcome this challenge, edtech players are shifting to hybrid channels of learning,
a combination of online and offline. Value-added services such as group discussions, live projects, career counselling
sessions and internships are now offered to enhance user experience.
Most online players are developing their offline businesses and offline players are
broadening their offerings to provide value-added services to improve the overall Personalised dashboards, accurate performance tracking and skill mapping are a few
learning experience. advanced features mostly provided to users.
Training institutions such as Career Launcher and T.I.M.E, and top B-schools like As mentioned before, premium institutions are offering these services to gain traction.
IIM-Ahmedabad and IIM-Kozhikode offer hybrid courses in the test preparation
segment.
The market size and audience size is formulated on the basis of time series forecasting based on the data provided in a KPMG and Google
report titled— Online Education In India 2021.
Glossary:
Seed Stage: Early stage startup at funding stage lower than series A
Average ticke size of funding: Total disclosed funding divided by number of deals
Credits
www.inc42.com/inc42plus AUTHOR
Over the past few years, India has become the focal point for the global tech Sandeep Singh, Vaishnavi Dayalani
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