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Relax, This Isn’t The End Of Edtech

Relax, This Isn’t The End Of Edtech
SUMMARY

Once the poster boy of Indian edtech, BYJU’S is now struggling to pay operational costs

However, this crisis doesn't negate and will not define the inherent value proposition of technology-aided education

It’s time we bring back the focus on learning and bring the ‘tech’ back in ‘edtech’

Inc42 Daily Brief

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If you’ve not been living under a rock, you’d be well aware of the crisis in Indian edtech. 

Once the poster boy of Indian edtech, BYJU’S is now struggling to pay operational costs, trying to raise money at valuations in the millions, fighting insolvency cases, and perhaps waiting for the last knock.

But does this signal the end of edtech’s golden age? 

Absolutely not. Especially in the world’s biggest market for school education. 

This crisis doesn’t negate and will not define the inherent value proposition of technology-aided education. While this is a stark reminder of the pitfalls of prioritising sales over product, this also serves as a wake-up call for the entire sector to shift focus on what truly matters: effective learning. 

Some Good Examples…

Take Eruditus, for instance. Eruditus posted a revenue of INR 3,320 Cr in FY23. Reduced marketing costs and a focus on core business have fueled the company’s rise, resulting in a robust edtech platform. 

While international markets currently account for the lion’s share (80%) of Eruditus’ revenue, the company is confident that India, currently generating only 20%, is poised to become its hottest growth engine in the coming months. 

Moreover, recognising the surge in demand for international education, Eruditus is now catering to students seeking diverse academic opportunities and offering cost-effective solutions without compromising on the quality of learning. 

Cuemath, in our portfolio, has a student-led model focussing on learning outcomes instead of armies of sales folks hounding parents into buying subscriptions on loans they cannot afford or pay back. 

A large chunk of Cuemath’s revenue (70%) comes from overseas (largely the US), thanks to a successful 1:1 tutoring proposition. As a result of this razor-sharp focus on deep, meaningful 1:1 interventions, its renewal rate has gone up from 45% in December 2022 to 60% in December 2023.

Road Ahead

Edtech startups must also now leverage the power of Generative AI. This technology can act as a co-pilot to increase tutors’ productivity and student engagement. 

It’s time we bring back the focus on learning and bring the ‘tech’ back in ‘edtech’. The path to profit for startups in this sector must pass through innovation, governance and a razor-sharp focus on learning outcomes. 

Edtech’s future lies not in aggressive salesmanship but in building products that truly empower learners and educators. It’s about fostering a genuine love for learning, not just chasing enrollment numbers. 

Parents are partners, not targets; their trust is built through positive experiences, not pressure tactics. The current shift presents a golden opportunity for those who prioritise product excellence, teacher-led experiences, and ethical marketing. Aggressive sales tactics that push and mislead parents into buying subscriptions and hope to thrive on their fear will lower trust in edtech as a sector.

The edtech companies shaping India’s tomorrow must exercise self-restraint to focus on learning, not pushy marketing, and –  above all –  learn from the mistakes of those who came before them. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

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