Online education in India will see approximately 8x growth in the next five years, says a recent report by Google, KPMG. This will have a significant impact on the edtech market that has a potential to touch $1.96 Bn by 2021 from where it stands now i.e. $247 Mn.
Traditional education systems (such as classrooms, tuitions) are slowly losing their importance as both students and educators embrace what edtech startups offer – convenience, personalisation, and agility. Then, we have newer concepts such as MOOCs (massively open online courses) gaining popularity amongst students and working professionals, alike. To this end, edtech startups too are making their presence felt in the $100 Bn Indian education sector, according to IBEF.
So what are the factors leading to this growth? What are the expected future trends to watch in this sector? Also, it is intriguing that despite having such large potential, the online education sector is unable to attract large, ticket size fundings, except for a few.
We at Inc42 reached out to a few investors and startup founders to answer these queries for us. Along with decoding the trends and facts mentioned in the Google-KPMG report shared with Inc42, we have tried to give you a quick overall view of the Indian edtech sector as it stands now.
Existing Business Models And Revenue Models In Edtech
The current user base for online education industry in India largely consists of school students and working professionals. Some startups are providing standardised offerings in the form of test preparation content and K-12 learning courses. Then there are startups that are offering skill-based education, and finally, the ones that bring on innovative and new models on deck.
Primarily, there are five business models/categories which are growing at a rapid pace in the edtech sector in India taking online education to the next level. These include primary and secondary supplement education, test preparation, reskilling and online certifications, higher education and language, and casual learning.