BLinC Invest, India’s fastest growing venture capital company, unveiled its Global Edtech Report 2021 to the public. The report talks about the current aspects of the global Edtech market and projects the success of the Indian education system on the backs of tech-enabled solutions and healthy funding.
Attracting over $2.5 billion of funding in 2020, India’s Edtech market is the most active in the world. Today, renowned global investors like Sequoia, Tiger Global Management, Blackstone, and Helion Ventures have either invested or are looking to invest in the future of the Edtech market of the country. Increased acceptance of venture financing as a reliable fundraising option and the willingness of dedicated NBFCs to lend to this sector are the primary reasons behind increased funding to the Edtech sector in India.
The report states that the stakeholders of the Indian Edtech market are jointly working towards scaling their value chain, from branding to faculty development. They identify gaps in the system (like training analytics and acquisition channel management) and close them to build a robust and sustainable framework. All this has pushed the Indian Edtech companies to revamp their marketing strategies and introduce innovative customer-centric solutions. For instance, the Freemium model allows customers to test out products for free (while paying for additional services) and buy them after they are satisfied. Moreover, such companies have launched products for the vernacular market, targeting a greater pan India presence.
Speaking on the release of the report, Mr. Amit Ratanpal, Founder & MD, BLinC Invest, said, “The Indian Edtech market has attracted a lot of global attention and the funding in the sector has grown tenfold in the last five years. However, the sector still faces a few challenges that don’t allow it to reach its full potential. Our report suggests that more funding in the coming years can help in addressing these challenges, allowing Edtech companies to provide reliable tech-driven solutions while streamlining their structure”.
The report underlines the change in consumer mindset towards technology caused by the pandemic. As geographical boundaries are no longer a concern, parents are willing to pay a premium to access the best education for their children. They are now eager to impart holistic education to their children through online extracurricular activities like chess, coding, music, etc. In terms of higher education, online degrees & certifications stand equivalent to offline ones. This will usher in a new era of education in the country, introducing short-term boot camps, new innovative financing (like pay after placement and ISA), new-age skilling, and more.