Tracxn, a market intelligence platform, today unveiled its latest report, the Tracxn Feed Geo Report: EdTech India 2024. This proprietary report provides comprehensive insights into the Indian EdTech ecosystem, covering funding raised by startups, major industry players, and the key trends shaping the landscape.
In 2024 YTD, the Indian EdTech sector raised $215M, showing a modest rebound from the $321M secured in 2023. However, this is still a long way from the sector’s peak in 2021, when it raised $4.1B. The 2023 figure marked an 87% drop from the $2.4B raised in 2022, reflecting the sector’s continued decline.
Despite having over 11,000 active companies, the sector is struggling due to macroeconomic conditions and a shift back to traditional learning as schools reopen. However, there is still strong demand for innovative online courses and professional upskilling programs, particularly in areas where offline education falls short, offering some hope for continued growth.
According to the report, the Indian EdTech sector demonstrated significant resilience in the first half of 2024, witnessing a remarkable 96% increase in funding, totalling $164M. Q3 2021 was the highest-funded quarter in this space, with an overall funding of $2.48B. Since Q2 2023, Q1 2024 has been the highest-funded quarter over the past three quarters, with more than 65% of the total funds raised in 2024.
Commenting on the findings, Neha Singh, Co-Founder of Tracxn, said, “The Indian EdTech sector has shown remarkable adaptability in the face of changing market conditions. While the funding levels are still below the highs of 2021, the sector’s growth in 2024 so far indicates a renewed interest from investors, especially as companies transition back to traditional learning methods while incorporating digital innovations.”
The Indian EdTech space has seen 24 funding rounds exceeding $100M, but only four of these have occurred since the beginning of 2022. So far in 2024, there has been just one $100M+ round. Despite the post-pandemic shift back to traditional learning methods, companies like Avanse, an online lending platform, secured $120M in funding and Lawsikho successfully went public in 2024. These developments highlight the potential for growth in niche areas within the broader EdTech sector.
The report highlights the top companies in India’s EdTech sector, with Unacademy leading at a valuation of $3.44B, followed by Eruditus at $2.9B and upGrad at $1.86B. In 2021, the Indian EdTech sector saw the highest number of acquisitions, totalling 31. This dropped to 26 in 2022 and further to 13 in 2023—a 50% decline. So far, in 2024, there has been only one acquisition of Schoolnet India acquiring Genius Teacher, a mobile exam preparation platform.
The majority of funding in this space has been seen in late-stage rounds, with a funding peak in 2021 and a sharp decline in 2023, dropping 94% from 2021 and 88% from 2022, with $187M raised. In 2024 YTD, $166M has been raised in Late-stage rounds. Similarly, Early-stage investments also peaked in 2021 and have steadily declined with 2023 witnessing $96.4M raised, an 85% drop from 2022’s $654M. So far, in 2024, Early-stage funding totals $40.4M. Seed-stage funding in India peaked in 2021 at $175M but has since declined significantly. Funding for seed-stage rounds dropped to $8.5M in 2024 YTD, marking a 76% decrease from the $156M raised in 2022.
In terms of sub-sectors within EdTech, India’s Test Prep segment, once a funding hotspot with a total funding of $7B , has seen a sharp decline. After peaking at $175M in 2021, funding has dropped to $8.5M YTD in 2024. Continued Learning has also experienced a significant funding downturn, falling from $517M in 2022 to $103M in 2023. Continued Learning startups have raised a total of $20M in 2024 YTD. Blume Ventures, Wellfound, and LetsVenture are the top overall investors. For Seed-stage, IPV, We Founder Circle, and EvolveX have been most active in the past two years. Blume Ventures, Alteria Capital, and the Michael & Susan Dell Foundation lead in Early-stage, while Trifecta Capital, Alteria Capital, and Stride Ventures excel in Late-stage investments.
Bengaluru dominates the Indian EdTech sector, accounting for over 64% of total funds raised, followed by Delhi and Mumbai.
Sector Trends and Future Outlook
India’s EdTech sector, though a global leader with six unicorns, hasn’t seen a new unicorn since 2023. Unacademy remains the most valuable player in this space. However, the Indian EdTech sector is evolving, with a shift toward integrating offline and online education to meet changing needs. Key trends include the adoption of AI and voice technology in classrooms, driving innovation.
Despite current challenges, the sector benefits from strong demand, technological advances, and supportive policies like the National Education Policy 2020. Public-private partnerships and hybrid learning models are expected to fuel future growth.
