The Indian Edtech Evolution

From Boom to Struggle and the Path Forward

Abstract

Indian edtech companies have played a key role in transforming the education sector by leveraging technology to improve accessibility and learning opportunities. These companies have experienced significant growth, particularly driven by the surge in demand for online education solutions during the COVID-19 pandemic. However, in the past two years, there has been a noticeable decline in funding for edtech firms, signaling a slowdown in the industry. Many believe that the boom in the edtech sector was largely driven by the pandemic and may not be a sustainable long-term model.

In 2022, Physics Wallah became a major success by offering a wide array of educational services. Despite a surge in revenue, reaching Rs 770 crore in 2022-2023, the company faced a decline in profitability, highlighting the challenges in sustaining growth. Vedantu, a well-known startup, focuses on live online tutoring and aims to create a personalized, interactive learning experience for students. Unacademy has also revolutionized coaching methods by offering online courses and live classes, making education more accessible. Newer companies like WhiteHat Jr, Infinity Learn, EduGorilla, and TrainerCentral are equipping youth with essential digital skills, though they still struggle with maintaining high standards and bridging the digital divide.

As these companies continuously innovate to meet the evolving needs of learners, the Indian edtech sector is poised for further growth, which will shape the future of education in the country. Byju's is a notable example of success, leading the sector with its innovative educational approach. It became a unicorn and a global leader by introducing an interactive and adaptive learning model that resonated particularly with students preparing for competitive exams. However, recent developments reveal that Byju's is burdened with significant liabilities. When Aakash tried to integrate with Byju’s, it found the company’s internal structure to be chaotic, with unclear roles and an undefined chain of command. Byju’s valuation has sharply declined, and the company is currently facing three legal complaints before the National Company Law Tribunal, including one from the BCCI, term loan B lenders, and Teleperformance, a French digital services firm. The situation worsens as investigations by the Ministry of Corporate Affairs and the Enforcement Directorate continue, leaving Byju’s in a precarious position in an otherwise fast-growing industry.