Startups in edtech today span sectors such as K-12, higher education,

vocational training, and corporate training sectors. Opportunities lie in

financial management tools, teacher lifecycle management, and
curriculum development, according to Manoj Thandassery, founder
of Curiositi.

Startups in this sector have rolled out offerings such as personalised

assessments, VR content, parent engagement, gamification, soft skills
development, digital libraries, student networking, test preparation,
procurement marketplaces, learning analytics, language tools, internship
location, and real-time scenario engagement.

In this article, we analyse the evolution of the edtech sector,

transformative forces, the rise of small startups alongside large players,
investment outlook, potential for future growth, and tips for aspiring
entrepreneurs in this space.

Roots of transformation
Portable devices can help bring in elements of physical mobility into
education which do not exist as much in classroom settings, according to
Jon Mason, Senior Lecturer, College of Education, Charles Darwin
University. Wireless sensors, cloud computing, digital publishing and
educational interactivity offer new pedagogic models of mobile learning
via online reference tools, curriculum material, external research and
strategic learning.

Following, in the wake of the social media revolution, are the dual trends
of cloud computing and the modularisation of computer software (as
standalone apps). Other transformative forces are advances in electronic
publishing and the latest generation of e-book readers. But challenges
arise in rural school inclusion, and guarding against attention deficit,
cheating and cyber-bullying, Mason cautions.

Fields like journalism education are being transformed, thanks to the

democratic impacts of digital media – which potentially make everyone a
writer, publisher, photographer and global broadcaster. Challenges arise
here in building digital literacy right at school levels, that extends to
proper assessment of online sources, including lessons on how to deal
with fake news and hate speech. Xu Xiaoge, a research scholar at
Nanyang Technological University (NTU), makes the compelling case
that mobile media is not a gear change but a game change. He argues
that mobile journalism should be taught to all students, not just
journalism students.

Keval Kumar, Adjunct Professor at the Fellow Programme in

Communications at MICA, Ahmedabad, urges for critical pedagogy
approaches in areas like checking for credibility of sources on the
internet, use of advertorials, and dealing with spam. The digital medium
has become an invaluable resource for both lecturers and students; how
it is used by teachers will depend on the strategies of their media
pedagogy.

Research publications like NetChakra have traced the impact of digital

media on India’s education system. From the SITE television experiment
and Countrywide Classroom to Gyan Darshan and EduSat, waves of
new media have enhanced education, according to Usha Reddy,
Hyderabad-based independent consultant on ICT for development.
Challenges arise in precise measurement of e-leaning outcomes and
adapting pedagogic and administrative frameworks.

Digital media has deeply impacted youth and the 4Ls of Learning:
Lecture, Library, Laboratory and Life, according to Prof. S. Sadagopan,
Dean, IIIT Bangalore. The availability of laptops and Wi-Fi on campuses
have improved the student’s learning experience considerably. INDEST
(Indian Digital Library in Engineering Science & Technology) has levelled
the field for Indian researchers.

The competitive advantage of emerging economies like India lies in the

strengths of its human capital, according to Amir Ullah Khan, Professor,
MANU University. India has established one of the finest education
systems in the developing world, with some institutions as global stars
(IIT, IIM, IISc, IRMA, CSIR, ISRO, BARC) – but they are hard pressed to
fill the massive jobs vacuum in the country. India’s youth have a lot to
offer, and the digital medium in turn has a lot to offer a country with
scarce resources and a large constituency.

India’s huge youth dividend makes education an essential service,

according to Mira Desai, Professor, SNDT University. Over the years, a
number of educational services portals have sprung up to address this
issue: Minglebox.com, 24X7guru.com, Extramarks.com,
100percentile.com, SmartClassOnline.com, WebDunia.com,
Prabhasakshi.com, and the Ministry of Human Resources
Development’s own Sakshat. Indian universities and colleges are now
able to access journals online via INFLIBNET (Information and Library
Network).

Edtech startups

According to industry estimates, the Indian higher education system

comprises about 700 universities and over 35,500 colleges. More than
85 per cent of these students are enrolled in bachelor's degree
programmes and about one-sixth of all Indian students are enrolled in
engineering/technology degree programmes. More than 70 per cent of
India is either badly educated or uneducated, and the Right to Education
act has been largely ineffective in improving the condition.
Nearly half the population is below the age of 25, many of whom
constitute heavy users of the Internet and mobiles, which bodes well for
growth of the online education market in India. Initiatives and
organisations such as Teach for India, Barefoot College, Nishtha and
eVidyaloka are actively tackling these shortfalls, and technology will be
one of many drivers for improvement. By 2020, India is projected to have
the world's largest tertiary-age population, and second largest graduate
talent pipeline globally.

Entrepreneurship development networks like TiE Bangalore have hosted

the edtech bootcamp and competition StartEdu, along with Unitus Seed
Fund and Sylvant. In successive rounds of competitions, a number of
outstanding edtech startups have been identified. Mentorship support
has been offered by S.Chand Publishers, Pearson Affordable Learning
Fund, and Integra. Past winners include LabInApp, an edtech startup for
secondary school science learning through 3D virtual graphics.
LabInApp, based in Hubli, also received a seed-round investment from
Unitus.

For example, Plastic Water Labs uses VR to promote spatial thinking by

leveraging the power of an immersive metaverse. ToT Smart Education
blends physical textbooks with a mobile app for game-based learning
along with a performance monitor. Entri is a plug-and-play test
preparation platform on the cloud for schools, teachers and coaching
institutes.

Walnut Knowledge Solutions has programme called Quizshala, a

companion platform that piques the curiosity of the learner, leading to
more motivation and sustained interest. XPrep addresses the visibility
and engagement problem within the tutor-parent network. Gyan Labs
has an adaptive, mobile-friendly learning platform for K-10 students,
leveraging gamification and testing in local languages.

Edudharma launched an online crowdfunding platform for NGOs,

corporates, individuals, and others to fund student needs in an organised
manner. Urros Education has a range of offerings including teacher skill
assessment and development; functional support for schools and
preschools; and staffing.
ClassPlus is a classroom management app helps tutors reduce time-
consuming secondary activities such as creating quizzes, checking
assessment, and tracking attendance logs. According to a report by
NSSO, India is home to the largest after-school tuition market in the
world, with over 7.1 crore out of the 30-crore school-going students take
supplementary coaching classes every year.

StuMagz provides a digital Platform-as-a-Service to colleges. It has a

strong focus on colleges in Tier II and III cities. The features include
digital magazine, digital classrooms, digital information system,
placements digital communication, alumni engagement, and payments.
It helps with delivery of assignments, materials, and tests as well as
managing attendance, timetable, notices and results.

NeoStencil provides online classes to students from teachers and

educational institutes for government jobs such as IAS, IES, GATE, and
state PCS. The marketplace lets students view a list of teachers for
different courses, and choose the course best-suited for them at a
convenient time slot.

Open Door has created a platform that helps children learn math and
science content with a focus on concepts and scientific thinking. Its
‘Mastery Program’ helps teachers ensure mastery of one concept before
moving on to the next. The program is integrated within the school
curriculum and becomes a part of classroom teaching.

Veative Labs uses VR to make learning interactive and fun in

classrooms. The VR modules in science and mathematics use 3D
models, 360-degree videos, tasks, exercises, simulations, and other
interactive activities. They are backed by smart analytics and classroom
management apps for teachers.

Shirsa Labs offers ‘entercation’ (edutainment) content for students. For

example, Planet of GUI is a goal-oriented virtual world for kids, packed
with videos, games, worksheets, eBooks, science experiments, DIYs,
and quizzes.

AlmaMapper, which raised $400K in seed funding, offers a student utility

platform for alumni connects, campus activities, and sharing of notes,
articles, and videos. Startups active in other areas like tutoring space
include Vedantu, Brainnr, EduWizards, and HelloClass.

Large edtech players

In addition to the rise of a range of smaller startups in edtech space,

there have been major moves by large players as well. For
example, Reliance has announced strategic investment of $180M in
Embibe, the largest AI platform for education. Reliance will pick up a
majority 72.69 percent stake in Embibe, which uses data analytics to
deliver personalised learning outcomes to students. The AI stacks focus
on content intelligence and automation, behavioural recommendations,
and student intelligence.

Online higher-ed platform UpGrad, co-founded by Ronnie Screwvala,

has announced partnerships with institutes like IIIT Bangalore and
Cambridge Judge Business School. It has earmarked Rs 200 crore for
foraying into Southeast Asian Markets and the Middle East.

Bengaluru-based online education platform Unacademy has raised

Series B funding of $11.5 million led by Sequoia India and SAIF
Partners. The team claims to have over 50,000 lessons online, and over
a million registered users. The platform’s educators range from
influencers like Kiran Bedi, to teachers in smaller towns such as Dhiraj
Singh Chouhan in Jagdalpur and Yasmin Gill in Panchkula.

Byju’s, one of the largest funded edtech startups in India, has an

updated app for unique learning journeys, actionable feedback,
recommendations, and guided paths, making the learning process more
interactive. It also has a Parent Connect app that provides its students
with a real-time update on every student’s progress. Investors in the
company include Sequoia Capital, Sofina and IFC. Byju’s also acquired
Edurite and TutorVista from the British publishing firm Pearson.

There have also been recent moves by the Indian government in this
space. At the announcement of the Union Budget 2018-19, Finance
Minister Arun Jaitley highlighted the government's push towards
integrating technology into education: “The government is set to increase
digital intensity in education. Technology will be the biggest driver in
improving quality of education.” Plans include investment in upgradation
of education, and Diksha Digital for teacher education,

Funding

The funding outlook is regarded as upbeat for startups that can develop
sustainable and defendable businesses in domains such as test
preparation, language learning, differentiated training, and tutoring.
Some of the investors and deals in the edtech sector have been already
identified in this article.

According to YourStory data, since January 2017, edtech startups raised

$94.21 million through 34 deals as against $107 million across 46 deals
in 2016. A report by KPMG and Google pegs the edtech market to touch
$1.96 billion by 2021.

In early 2018, backed by the Michael & Susan Dell Foundation, the
education-focused VC fund CBA Capital launched a Rs-100-crore fund
to empower companies focused on education and skilling solutions.

India’s education sector accounts for 9.9 percent of the government’s

total budget; Rs 46,356.25 crore was allocated for schools and the
remaining for higher education. However, the edtech industry takes a
long time in converting its free users into paid ones, cautions a report
by RedSeer. The average time period is between six and eight months.

Edtech founder tips

A range of experts offer useful and actionable insights for aspiring

edtech entrepreneurs and scale-stage startups. “Immerse in and connect
to the broader edtech ecosystem. Vision is great, but don’t forget the
numbers, especially in the edtech space. Measuring the efficacy of
learning outcomes is the key to succeeding in the education space,”
advises Sunitha Viswanathan, Senior Investment Associate, Unitus Seed
Fund.

Startups should have not just comprehensive research to back their

proposal, but also a compelling founder story: problem discovery,
personal voyage (for example, insights in the college stage or post-
corporate world), and end-user transformation. Edtech startups seeking
funding should also show investors that the problem space is sufficiently
large, has good traction, and can offer exits further down the road.

Startups should conduct broad ecosystem mapping to better understand

the product-research and decision-making cycles for the stakeholders;
for example, the role of school trustees and textbook publishers.
Decision makers can be contacted via alumni networks, industry
associations, and even tuition centres, calling for extensive networking
with the diverse players in the ecosystem.

The founding team should have estimates for TAM (Total Addressable
Market), SAM (Segmented Addressable Market), and SOM (Serviceable
Obtainable Market). There should be clarity on pricing and financing
models, direct and indirect revenue streams, and viability of unit
economics in scale stage.

The road ahead

Emerging frontiers in edtech include horizontal marketplaces and local

language educational content. India should take an ‘invest and benefit’
approach for e-learning than mere ‘cost justification,’ advises Prof. S.
Sadagopan. The internet and tablets have allowed students to go
beyond ‘brick and mortar’ laboratories. ‘Peer learning’ and ‘buddy
learning’ have mushroomed, thanks to social media and smartphones.

Digital media in schools can help students in collaborative activities,

peer-rating/ranking, and asking questions (not just answering them!).
Digital metrics in education range from basic activity (eg. number of
content assets created or consumed) to process impacts (eg. better
research and composition skills),and can even help educational
institutes offer these educational services to a broader online audience
elsewhere in India around the world. However, children should also learn
the importance of trust, safety, ethics, relevance and focus in
cyberspace.

“The more ways you teach, the more children you reach,” says Anjum
Babakhan, Director of Education, Glendale Academy. In Howard
Gardner’s theories of multiple intelligence categories (musical, visual,
verbal, logical, kinaesthetic, interpersonal, intrapersonal, naturalistic,
existential), each leads to different types of professions and each can be
enhanced in different ways by digital media.

Online learning is definitely the way to bring high-end education and

learning to the masses with comparatively lower costs, according
to Ashwin Damera, Executive Director, Emeritus Institute of
Management. In this regard, edtech transformations are regarded as a
ray of hope to tackle India's vast challenges.

In sum, the mobilisation of digital media for the purposes of learning,

education, and training will be one of the key factors in shaping the
Indian youth and workforce in the coming decades.