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Tuesday, 22 December 2020

Indian edtech startups received over $2.22 billion funding in 2020 as compared to $553 million in 2019

Indian edtech startups have seen a total investment of $2.22 billion in 2020 as compared to $553 million in 2019, according to Indian Private Equity and Venture Capital Association (IVCA) and PGA Labs data. The IVCA report ‘The Great Un-Lockdown: Indian Edtech’ released on 16 December stated that 92 players received funding in 2020, out of which 61 players received seed funding.

Byju’s and Unacademy have raised the most capital, $2.32 billion and $354 million, respectively, in 2020, while B2B edtech received a total funding of $31 million in 2017-2020.

(Also Read: Bengaluru-Based Unacademy Raises New Funds From Tiger Global Management And Dragoneer Investment Group)

The report estimates that education is a $117 billion market in India with around 360 million learners in 2019-20. The report further said around $49 billion is spent on school education, 66 percent of which is spent on primary education and 27 percent on secondary education. Around $42 billion is spent on supplementary education, which primarily comprises private coaching and test preparation.

According to the report, the education market is expected to grow 2 times to $225 billion by FY25 at a CAGR (Compound Annual Growth Rate) of 14 percent over FY20-25.

The education sector has received growing attention from the government with budgetary allocation increasing from $11.3 billion in 2018-19 to $13.2 billion in 2020-21. The report states that India is one of the largest markets for education with 360 million learners in FY20 and is home to some of the largest edtech companies with a global marquee investor base.



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