- Over 14 startups have raised
funding since March 2020, asonline education sees a massive boom in India. - Even before March, Byju’s raised $400 million and Unacademy raised $100 million in a round led by Facebook.
- Even in a challenging environment,
edtech is expected to remain a very hot sector of VC investment
However, out of the 14 startups, at least 9 have raised seed funding, which means investors are willing to bet on early stage startups that can prove their worth during the coronavirus pandemic.
According to $4, Byju’s is continuing its hot streak and is set to raise another round for a massive $10 billion valuation. Its last reported valuation was $8.2 billion. The startup is reportedly set to get an additional $400 million for its ongoing round.
Online education has seen a massive boost since lockdown. Almost every other online platform has opened up its content for free making it accessible for all students. Even in a challenging environment, edtech is expected to remain a very hot sector of VC investment, said a KPMG report.
ere are the startups that have raised funding since March 2020, according to data intelligence platform Tracxn.
Growing numbers
As much as a month before the
Edtech startups are seeing their numbers grow by the minute. In March alone, Byju’s saw 6 million new students access free lessons on its platform, while Unacademy recorded 1 billion watch minutes. Another edtech app Toppr saw 100% growth in free user engagement in March.
“We believe that this trend is here to stay. Online learning is on-demand, convenient and personalized. As parents and students across the country are trying online learning as a go-to learning resource in these difficult times, they are also realising that it is a lot more powerful than an offline coaching class,” said Zishaan Hayath, CEO & co-founder, Toppr.com.
Another startup Lido, which raised funds in March, was looking to hire over 500 tutors across the country as it was doubling down during the edtech boom.
“The COVID-19 pandemic has enabled new opportunities for the edtech market in India. Besides formal education, the extracurricular segment (worth $10 billion) is also projected to experience a meteoric rise in the number of users, buoyed by the offline to online shift,” said Gaurav Jain, Co-Founder and Investor, Venture Catalysts, who has invested in the startup Qin1. The startup Qin1 is focussed on providing extracurricular activities to children via a digital platform.
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