MAKING THE GRADE
The companies most likely to endure in India’s shifting edtech landscape are those that are outcome-driven, rather than simply content-heavy, analysts said.
Singh from Tracxn said more resilient firms are those tied to “clear return on investment for users” – such as securing jobs, gaining admission to top universities or achieving strong exam results.
Likely winners will also generate revenue from multiple sources and rely less on expensive customer acquisition by partnering with schools, colleges and institutions, she added.
Success also depends on pricing models suited to a market where millions cannot afford traditional coaching fees, analysts said.
Mishra, the parent whose son uses Physics Wallah, said the platform is “highly successful in remote areas” as many students lack access to coaching centres and the means to pay for them.
He added that children in smaller towns often lack a broadband internet connection and must ration limited mobile data, using it “very judiciously”, mainly for lectures.
Trust remains another critical ingredient, observers said.
In 2022, Byju’s was hauled in by India’s child rights watchdog after local reports alleged it used exploitative sales practices, including on poorer families.
In the aftermath, Byju’s told the watchdog it would introduce an affordability test before signing up customers, aimed at screening out families earning below about 25,000 rupees a month, according to local reports.
Yet, some firms still continue to use aggressive sales practices, said education activist Pradeep Poonia.
He recently encountered students who were sold a course in Germany by an upskilling firm without fully understanding the total costs, only to realise later the financial burden was far higher than expected.
“Many people get stuck in such traps,” he said, adding that some take on loans or multiple jobs to cope.
Somani, the edtech investor and partner at Prime Venture Partners, pointed to the importance of brand, certification and distribution of products to recognised schools and educational institutions.
Ultimately, he believes investor interest in the sector remains intact, albeit more cautious and selective – a view echoed by other industry players.
“Investors haven’t written off edtech (in India) … the market is massive and the demand for education isn’t going anywhere,” he said.
https://www.channelnewsasia.com/asia/india-schools-edtech-online-learning-ai-upgrad-unacademy-6027696
