EdTech Landscape In India: What Changed In The Post Pandemic Years

<p>It was <span>10</span>^th June <span>2020</span>. Moumita had to figure out a&nbsp;way to teach her students online. Short on resources to purchase a&nbsp;tripod to teach her students, Moumita fashioned a&nbsp;makeshift tripod using a&nbsp;chair, cloth hanger, and cloth pieces. She knew how crucial it was for her students to continue learning and growing during the pandemic that had caught India and the world&nbsp;unprepared.</p><p>In August <span>2020</span>, in the shadows of the early impacts of the pandemic, we published our <a href="https://docs.google.com/presentation/d/1P1S_dubRQmqZk45xgkbQiYI2gxAbDRVgT6kRCy6dPzE/edit#slide=id.g87dcc89c13_0_1380"><u>first EdTech report <span></span>​<span>‘</span>Summer of Indian Education’</u></a>. Two years since then, we have seen several ups and downs, through which one thing remains unchanged — education remains the primary pillar on which our society progresses. And so, the sector has grown wider and deeper despite the ups and downs. We went back and tried to make sense of all that transpired in this time, re-looked at our EdTech report in the wake of a&nbsp;new world, deep-dived into what we see as large opportunity areas going ahead, and compiled all our understanding from the last two years in the <a href="https://bit.ly/blume-edtech-2022"><u>Blume EdTech Report <span>2022</span></u></a>. Here’s what we&nbsp;found.</p><h4><strong>What has changed in EdTech since&nbsp;<span>2020</span>?</strong></h4><p>The last <span>24</span> months have been the most pivotal for the Indian edtech space since the Jio revolution in <span>2016</span> that brought online learning to students’ mobile phones in the most remote corners of the country. Here’s a&nbsp;quick look at what changed and how that impacts students, teachers, schools, edtech businesses, and&nbsp;investors:</p><h5><strong><span>1</span>) <span>COVID-<span>19</span></span> had a&nbsp;larger impact than&nbsp;expected&nbsp;</strong></h5><h5><strong><span>2</span>) Edtech startups were able to gain traction globally</strong> </h5><h5><strong><span>3</span>) Large EdTech companies became even larger via inorganic&nbsp;growth&nbsp;</strong></h5><h5><strong><span>4</span>) China EdTech’s&nbsp;crash&nbsp;</strong></h5><h5><strong><span>5</span>) <span>COVID</span> effect wears off and EdTech moves back to hybrid</strong> </h5><h5>To summarise:</h5><h4>How we look at EdTech&nbsp;now</h4><h5><strong><span>1</span>) Instead of the revenue model (<span>B<span>2</span>B</span> vs <span>B<span>2</span>C</span>), we looked at the core consumer&nbsp;motivation&nbsp;</strong></h5><p>Is it acing an entrance exam? Is it finding new mentors? Is it something else? This became important because the goal of the consumer determines how much and where they will pay, how they will discover the platform, and how they will behave with the&nbsp;product.&nbsp;</p><h5><strong><span>2</span>) Expanded user&nbsp;palette</strong></h5><p>Most market sizing reports in the past have underestimated <span>TAM</span> for one simple reason — a&nbsp;good product creates its own market. In this report, we covered spaces like <span>21</span>^st century skills, financing, communities, and&nbsp;more.</p><h5><strong><span>3</span>) Catalysts of&nbsp;education&nbsp;</strong></h5><p>Businesses that are not directly engaged in teaching but are servicing the overall education sector, have been seen as catalysts since their distribution, stickiness, and <span>ARPU</span> looks different than that of a&nbsp;learning platform.&nbsp;</p><p>In the wake of new demand and a&nbsp;new macro environment, we looked at large opportunities over the next few years and the key themes in those&nbsp;spaces:&nbsp;</p><h5><strong><span>1</span>) Learning and Personal Development for children under <span>8</span></strong> </h5><h5><strong><span>2</span>) Daycare and preschool</strong> </h5><h5><strong><span>3</span>) <span>21</span>^st century&nbsp;skills</strong></h5><h5><strong><span>4</span>) College Financing</strong> </h5><h5><strong><span>5</span>) Upskilling </strong> </h5><h5><strong><span>6</span>) Community <span>&amp;</span>&nbsp;Mentorship</strong></h5><p>To read more about our view on how the space has changed over the last <span>2</span>&nbsp;years, how new opportunities have evolved, and most importantly, to see our in-depth take on each opportunity area, <a href="https://bit.ly/blume-edtech-2022"><u>please read the full report here</u></a>.</p><p><em>Blume’s report in the EdTech space builds on our experience of investing in the sector over the last <span>12</span>&nbsp;years, as well as our interest in exploring new sub-sectors within the industry for future investments. While we have deep-dived into a&nbsp;few opportunity areas in this report, in no way do we believe that this is a&nbsp;final and exhaustive view of the entire sector. We are always on the lookout to improve our understanding of the sector and to learn about new developments and&nbsp;themes.&nbsp;</em></p><p><em>This is a&nbsp;living, breathing, ever-evolving report — please let us know if you have feedback or data that contradicts our view. We look forward to hearing from&nbsp;you&nbsp;:)</em></p>

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