The rapid advancement of artificial intelligence (AI) and other technologies is projected to transform nearly one-third of the global workforce by 2030, significantly driving demand for upskilling. This trend is especially evident in India, where a robust ecosystem of educational technology (edtech) providers has emerged over recent years. After facing challenges during a global funding downturn, India’s edtech sector is now experiencing a resurgence.
This month, Eruditus, a Mumbai-based startup specializing in executive education through partnerships with 80 universities worldwide, raised $150 million in a Series F funding round led by TPG Rise Fund, boosting its valuation to $3 billion. The funding will be directed towards expanding offerings and investing in AI technologies. Notable backers of this round included the Chan Zuckerberg Initiative and SoftBank Vision Fund 2.
TPG Rise’s Steve Ellis emphasized that Eruditus’s mission aligns with their investment strategy focused on supporting businesses that enhance access to quality education and increase lifetime earning potential for students.
Additionally, upGrad, which positions itself as South Asia’s largest edtech company, secured $60 million from Singapore’s sovereign wealth fund, Temasek, maintaining a flat valuation of $2.25 billion. This funding will enable upGrad to expand its university and corporate upskilling courses across various regions, including the UK, US, Middle East, India, Singapore, and Vietnam.
The edtech sector is also making strides in basic education. PhysicsWallah, an online curriculum provider catering to students from grades 6 to 12, received $210 million from Hornbill Capital Advisers and others, achieving a valuation of $2.8 billion in September. The platform specifically targets students preparing for engineering, medical, and dental school entrance exams.
Demand for Skilled Professionals and Market Dynamics
India’s edtech industry flourished during the COVID-19 pandemic as schools and universities transitioned to remote learning. However, this initial growth phase was tempered by a funding pullback as investors became cautious amid macroeconomic challenges and students returned to traditional classrooms. Nevertheless, the need for skilled professionals remains unaltered in a nation of over 1.4 billion people. With 900 million Indians expected to be active internet users by next year, the potential for startups focusing on remote education and training is substantial.
India’s youthful population, widespread smartphone usage, and strong consumption of online content further bolster the edtech landscape. The Indian government has initiated various programs to promote e-learning, yet challenges such as poor internet connectivity in rural areas and resistance to remote learning persist.
Research and Markets reported that India’s edtech sector, which comprises around 4,450 startups serving approximately 300 million school students, could be valued at $10.4 billion by next year. Tracxn, a market research firm, highlights India as the third-highest funded edtech ecosystem globally.
Despite the recent influx of funding, the edtech sector still grapples with a decline in investment. After raising a record $4.73 billion in 2021, funding dropped more than 90% last year to $321 million. As of August this year, before recent deals, only $215 million had been raised.
With capital becoming scarce and the market fragmented, many startups are pursuing acquisitions. For instance, Google-backed Adda247 has acquired five competitors, including two this year, while Schoolnet has purchased Mumbai-based Genius Teacher, a quiz-based learning app for K-12 students.
