- The Indian Education System is one of the largest in the world with more than 1.5 million schools, 8.5 million teachers and 250 million children and third in higher education system in terms of students. Tamil Nadu, is placed in the forefront of new-age technologies, including AI/ML, deeptech and gamification, putting customisation and personalisation first in the education space.
- Startups offering hybrid learning module are the most preferred support for the education ecosystem and Startups in skilling, Higher Education Tech, K-12 EdTech and Online Courses have gained prominence since 2016.
- Though 2023 saw a dip in EdTech funding, things will experience a quick rise in 2024 -25 with Higher Education Tech and K-12 EdTech gaining prominence, especially in Tamil Nadu. Tamil Nadu EdTech sector shows promise due to a demand-supply gap between teachers and course availability in offline education, which might fuel the sector’s growth in the coming years.
- Chennai is the fastest growing Startup hub that houses most of the Startups that create value and soon will rise in terms of valuation in the EdTech sector, closely followed by Coimbatore and Tiruchi.
- India houses seven EdTech unicorns and customers have shown an impulsive buying behaviour.
- Lack of cost-effective and quality content, lack of connection between content curators and absorbers and skewed teacher-student ratio, particularly in Tier II and III regions, pave the way for more EdTech Startups in Tamil Nadu.
EdTech
Advantage Tamil Nadu
Introduction
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.
Market Potential
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.
Initiatives
Union Government
- NEP 2020: In 2020, the Union Government introduced the New Education Policy (NEP 2020) to promote inclusive, quality-based education, learning, and development in the Indian education sectors. It emphasises the use of EdTech to advance education, particularly in rural regions. NEP lays its accent on more skilling, especially in 21st-century learning skills, helping Startups in skilling, and K12 gain more prominence, STEM-based education and gamified learning and educational toys have also gained traction.
- DIKSHA: Digital Infrastructure for Knowledge Sharing is a nationwide platform for school education launched in 2017 to provide students, instructors and parents with curriculum-based engaging learning materials. The portal supports more than 18 Indian languages.
- PM eVIDYA: In order to promote and develop digital education in India, PM eVIDYA was launched in 2020 to make e-learning more accessible for Indian students and teachers. The scheme helps pupils by bringing together all online and digital education-related activities.The programme includes creation of original digital content for students who are visually challenged or have hearing impairment as well as providing radio/podcasts and QR-coded digital textbooks for students of class one to twelve via the DIKSHA portal.
Resources
For the Ed Tech sector to thrive and grow in Tamil Nadu, several critical resources are available abundantly. Some are:
Manpower
Tamil Nadu is home to a large pool of skilled professionals, including engineers, IT experts, educators and content creators. The availability of this talent pool makes it relatively easier to find the necessary manpower.
Materials
The State has a well-developed IT and technology ecosystem, which includes various companies and service providers specialising in content creation, software development and e-learning solutions. The availability of materials is generally good.
Capital
Tamil Nadu has a thriving Startup ecosystem and access to venture capital firms, angel investors and government schemes that support entrepreneurship. Raising capital can be facilitated through various channels within the State.
Infrastructure
The state has a robust IT infrastructure with technology parks, data centres and connectivity options. This makes it conducive for the establishment and growth of EdTech Startups.
Other Assets
Tamil Nadu has a well-established education system with numerous universities, colleges and schools. This provides opportunities for collaborations and partnerships within the education sector.
However, it is important to note that the specifics may change over time due to economic, technological and regulatory factors. It is advisable to conduct a thorough market research and consult with local industry experts or organisations for the most up-to-date information.