What Is EdTech?
EdTech or education technology, is the practice of introducing information and communication technology tools into the classroom to create more engaging, inclusive and individualised learning experiences. EdTech, or education technology, is the combination of IT tools and educational practices aimed at facilitating and enhancing learning.
With access to the Internet, the number of schools and higher education institutions has doubled in the last couple of years. An increased demand for skill potential, jobs and career growth has enhanced the market potential for EdTech Startups, especially in skilling and higher education tech. Education financing and test preparation have a demand surge and this is expected to grow by 25.87 % (compound annual growth rate) in 2022-2030. India is expected to have 100 Mn+ paid EdTech users by 2030.
The education sector in India is expected to reach $30 Bn by 2030. With the increased demand for hybrid schooling and a skilled workforce, Tamil Nadu can capitalise on Higher Education Tech, K-12 EdTech and Online Courses with a strong business model. The top three segments under the EdTech umbrella are eLearning, Skilling and Education Financing. The total amount invested in these three sectors stands at ₹15532.2 million ($ 189 million). Bengaluru has the maximum deals to its credit.
India’s EdTech sector is expected to experience remarkable growth, with the total addressable market projected to reach $29 Bn by 2030. The sector has already received $11 billion in investments since 2014, generating seven unicorns and seven soonicorns. Despite the EdTech funding winter since 2022, which has seen a decline of 49% and 42% YoY in funding amount and deal count, respectively, the EdTech sector’s future in India looks optimistic. Startups are driving innovation and growth and the sector’s hybrid players are quickly gaining ground, threatening to disrupt traditional learning models and transform the EdTech landscape
Current Scenario in Tamil Nadu
K12, Higher Education Tech and Skill Development are the major sub-sectors in EdTech that have shown prominence in Tamil Nadu. EdTech Startups in native content, especially in skilling and those in education financing will also have prominence in the State, where there are no unicorns or soonicorns in this sector. EdTech startups from Coimbatore and Tiruhi stay ahead, as those in Chennai, in terms of value creation and valuation.
Future Road Map
EdTech Startups in skilling, online exam preparation and certifications are bound to gain in prominence. But they have to reinvent themselves and their value proposition, especially in hybrid mode, for more user traction. Since consumers in EdTech are more into impulsive buying behaviour, the Startups have to create a positive learning experience to retain them as recurring revenue is the sustainability model for Startups in the EdTech space.
- A product offering a combination of vernacular languages is a must. In many families located in Tier III regions, children are the first to attempt online learning. Vernaculars will help create better trust among parents
- Low-bandwidth products and downloadable videos will be more popular in remote areas due to data connectivity-related issues
- Business models that utilise content distribution will be able to scale up and have a revenue model in the next wave.
- Startups in skill development (reskilling and upskilling), those working in 21st-century learning skills, STEM-based education (science, technology, engineering, and maths) and gamified learning, including education toys, AR/VR, will gain substantial user base and traction in the years to come.