Indian edtech platform Toppr has claimed that it witnessed 100% growth in the number of paid subscribers in the last quarter (Q3 2020). The company has also claimed 100% growth in its revenue in the last 12 months. However, Toppr hasn’t disclosed further information about its financials.
The Mumbai-headquartered Toppr, which offers a range of offerings in the edtech domain, such as K12 learning, competitive exam preparation and coding classes, claims that 72% of its users during the Covid-19-induced lockdown, came from Tier 2 and Tier 3 cities. Toppr, which has more than 10 Mn app downloads, claims to have more than 13 Mn users on its platform.
Other key metrics cited by the company include a 125% growth in the subscribers for live classes each month and 100% growth in the free user engagement month on month. However, the company hasn’t provided absolute numbers which could help gauge the significance of the increase in users.
“We have noticed a 50% growth in traffic even though most of the school exams are over and a 50% growth in the time spent across all modules. The highest growth has been on the Ask Doubts module where over 35% of the doubts are cleared by bots. We are pleased to see the increase in enrolment from tier-II and tier-III cities and expect further traffic from them in 2021,” said Zishaan Hayath, CEO and founder of Toppr.
The company has set itself a target of gaining 100 Mn users in the next three years.
In July, Inc42 reported that Toppr had raised INR 350 Cr in a Series D funding round led by Foundation Holdings. The company had said that the funds would be used to fuel its adaptive core AI learning platform. Toppr has raised a cumulative amount of INR 700 Cr ($93 Mn).
Founded in 2013 by IIT Bombay alumni Hayath and Hemanth Goteti, Toppr claims to be using artificial intelligence (AI)-based machine learning algorithms to personalise learning paths for every learner.
Last week, Inc42 reported that edtech startups such as Unacademy, UpGrad, Vedantu, and BYJU’S, along with fintech startups such as Zerodha and Razorpay, have emerged as the biggest hirers in recent months.
The Indian edtech sector, besides witnessing an uptick in key metrics, saw a wave of mergers and acquisitions this year, the largest of which was BYJU’s acquiring WhiteHatJr for $300 Mn.
And while fintech has been the best performing sector in terms of funding deals for startups, with $543 Mn raised from 62 deals, it is followed by edtech with $452 Mn from 44 deals.
Indian Edtech Sector: A $10 Bn Opportunity
With a market size of $2.8 Bn in 2020, the Indian edtech sector is expected to grow at a compound annual growth rate (CAGR) of 39% to reach a market size of $10.4 Bn by 2025, highlights an Inc42 Plus report, “The Future Of Edtech In India: Decoding the $10 Bn Market Opportunity”. Some of the major factors driving the adoption for edtech apps in India will be convenience and cost-efficiency of the products and services, a surge in out-of-pocket expenditure on education and rise in course fees.
Test preparation, K12 learning, online certification and skill development are expected to be the major drivers of demand for Indian edtech startups in the coming years.