ONLINE INTERNSHIP PROGRAM – 2021

ON
START-UP MANAGEMENT

CASE STUDY ON

“FUTURE OF FINTECH AND EDTECH”

Submitted in partial fulfillment of the requirements for the award of the degree
Of

BACHELOR OF TECHNOLOGY

In

ELECTRONICS AND COMMUNICATION

Submitted By
ANISHA KUMARI
Enroll. No. - 06301022019

Submitted To
Dr. V.K. Arora
CEO
IGDTUW Anveshan Foundation

IGDTUW – ANVESHAN FOUNDATION

IGDTUW Campus, Kashmere Gate, New Delhi-110006

5TH JUL – 13TH AUG 2021

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 ACKNOWLEDGEMENT

I am extremely grateful to IGDTUW – Anveshan Foundation for introducing this Internship

program on Startup Management and giving me an opportunity to be a part of it. Furthermore, I would
like to express my sincere gratitude to Mr. VK Arora, CEO, Anveshan Foundation and Mr. Rahul
Sachdeva, Dy. Manager for organizing this program. It was a very informative and useful program which
would not have been possible without their guidance.

I would also like to thank my parents for encouraging me to opt for Startup Management. Their
support made it much easier to complete the internship. I am very thankful to my friends who directly or
indirectly helped me through this internship.

Anisha Kumari

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 OBJECTIVE

The rise of FinTech (financial services technology) as a new chapter in the Indian Financial Services
(FS) sector is examined in this research. One of the report's main goals is to shed light on the rise of
FinTech technologies in new frontiers such as next-generation payments, peer-to-peer lending,
security and biometrics, Bank in a Box, block chain, Robo advising, and financial inclusion in India.

Coming to EdTech, the rapidly growing sector, the main focus is drawn towards the initiatives by
Government of India. Challenges faced by the edtech companies and the strategies to overcome those
challenges are taken in account.

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 EXECUTIVE SUMMARY

FINTECH

With the ever-changing economy, the world of finance is progressing through automated technologies and
machine learning algorithms. In order to stay ahead, financial institutions are relying on modern tools to
streamline their processes, especially in rapidly changing markets. They are leveraging the changes and
opportunities that digital technologies represent aiming to accelerate their impact on employees,
customers and businesses.

Fintech is a term that was coined to describe the new wave of financial technology. In the past, the
financial world was very traditional, but Fintech is changing all of that. Fintech is the new wave of
technology that is revolutionizing the world of finance. Digital payments, digital lending, BankTech,
InsurTech and RegTech, and crypto currency are some of the most important FinTech areas. FinTech
today spans a variety of sectors and industries, including education, retail, banking, nonprofit fundraising,
and investment management, to mention a few.

Government initiatives

The Government of India created a regulatory framework in the nation that encouraged new firms to take
the lead and build a name for themselves in the financial industry. In 2018, more than 125 fintech start-
ups were successfully launched. This is apparent in the growth in investment and funding by both foreign
and domestic banks, as well as the ground for India's fintech start-ups to fund payment wallets, finance
tools and other financial services.

 For technology innovators, the GOI has launched initiatives such as National Payments Council
of India (NPCI), Digital India Program, and Jan Dan Yojana.

 There are tax benefits for businesses and consumers as well on e-payments as surcharges on
electronic transactions stay relaxed.

 The authentication requirements for the same also show the active effort of the government
towards strengthening the fintech space in India.

Types of FinTech companies in India

 Digital/Mobile Payments
 Insurance
 Crowd funding

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 Digital lending
 Stock trading apps
 Robo advisors

Challenges for Fintech startups in the middle of COVID19:

o The pandemic has disrupted many FinTechs' business models;

o FinTechs are likely to face a prolonged period of softened demand as consumption decreases across
India;
Startups are struggling with new business origination due to travel restrictions.

Both Fin Techs and incumbents have enormous potential to revolutionize the financial services sector and
boost India's economy by driving the consumption narrative over the next five years.

EDTECH

EdTech (a blend of "education" and "technology") refers to hardware and software designed to improve
student learning outcomes by enhancing teacher-led learning in classrooms. EdTech is still in its infancy,
but it has the potential to tailor a curriculum to a student's skill level by introducing and reinforcing new
knowledge at a speed that the student can handle.

EdTech becomes a crucial link between enrolment and enhanced learning outcomes. Its scope, however,
is not limited to classrooms. Supplementary education, commonly referred to as tuition or coaching, is
crucial to bridging learning gaps. New areas are expected to emerge, allowing EdTech to disrupt
traditional education systems and imagine what students are learning in the 21st century. Already, it
offers several innovative solutions in building competencies of critical thinking and creativity, or
mindsets such as grit and empathy through online coding or arts programs, ensuring that education
remains relevant with changing times.

Government’s initiatives to promote EdTech

The Government allocated $8.56bn for the Department of School Education and Literacy in its Union
Budget 2020-21, with a target to achieve a Gross Enrolment Ratio (GER) of 30% by end of this year.

DIKSHA (Digital Infrastructure for Knowledge Sharing), an initiative of the National Council for
Education Research and Training (NCERT), Ministry of Education, is a national platform for school
education that can be accessed by learners and teachers across the country and currently supports 18+
languages and the various curricula of NCERT, CBSE and SCERTs across India.

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SWAYAM is a program that aims to accomplish Education Policy's three cardinal principles: access,
equity, and excellence

Advantages of online education

 Learn from anywhere, at any time

Since online education only requires a laptop or a smartphone with an internet connection, students can
learn anywhere at any time. This flexibility helps working professionals to pursue new courses without
giving up their jobs.

 Save Money and Time

Online education is much more cost effective than doing a regular on-campus degree. It helps students
who cannot afford a regular college degree to accomplish their dream without spending a fortune on
college education.

 Learn at your own pace

Online education solves this issue. In online education all the course materials are provided beforehand,
students learn it by taking their own time. Students can clarify their doubts by live chats or forums as
well.

 Recognition of online degrees

Online degrees are accepted by many companies and employers in India as long as it is accredited and
approved by Distance Education Council (DEC) of India. Many of them are encouraging their employees
for getting online education as well.

Top EdTech startups in India

 Byju’s
 Classplus
 Doubtnut
 Meritnation
 Educomp smart class
 Skillshare
 CueMath
 Coursera

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Challenges

 Insufficient digital infrastructure

 Poor learning engagement
 Lack of standardization, credibility and quality
 Language of the courses
 Low completion rates

Strategies

 Building a powerful and credible brand

 Certification and Gamification
 UI/UX and content
 Site/App crash monitoring
 Price points and packages

Covid-19 influence on the edtech market

During the COVID-19 epidemic, several government efforts such as Swayam, DIKSHA, and E-Vidya, as
well as specific state initiatives, reflect that education sector reform is a need, and that edtech firms are
the ones who have a key role to play in this transition. As a result, while edtech businesses work to
improve their digital environment in order to reach out to wider audience. The government must create
programs and changes to boost online learning in the country for students and working professionals.
Cities in Tier 2 and Tier 3 need to upgrade their digital infrastructure. With choices for translation and
transliteration of the online learning interface, digital platforms must adapt to the user experience for
regional viewers.

In the future, the industry is anticipated to see more activity in terms of innovation, new initiatives,
investments, and mergers and acquisitions (M&As).

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 CONTENTS

Acknowledgement ………………………………………………………………………..2
Objective…………………………………………………………………………………..3
Executive summary………………………………………………………………………..4

1. Introduction………………………………………………………………………….....10
1.1.1 FinTech…………………………………………………………………………....10
1.1.2 Types of FinTech companies in India……………………………………………..10
1.2 EdTech……………………………………………………………………………..11
1.2.1 Top EdTech start-ups in India……………………………………………....13
2. FinTech: Five years from now………………………………………………………….14
3.1. The history of Fintech………………………………………………………….15
3.2. Evolution of FinTech………………………………………………………………….15

3. Pillars of a FinTech ecosystem…………………………………………………………………..17

4. FinTech in India…………………………………………………………………………………...18

4.1. Ecosystem Coverage of the Indian FinTech Sector……………………………………..18

4.2. Attributes of a successful fintech hub…………………………………………………...28
4.3. Impact of covid on Indian FinTech market……………………………………...29
4.4. Future outlook of Indian Fintech Market……………………………………………......30

5. EdTech in India…………… ………………………………………………………………………31

5.1. Growth trends in the EdTech industry in India…………………………………..32

5.2. Key EdTech startups in India…………………………………………………….37

5.3. Key global EdTech startups………………………………………………………40

5.4. Challenges………………………………………………………………………………...42

5.5. Strategies………………………………………………………………………………….43

5.6 Future outlook of EdTech in India………………………………………………...44

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6. Annexure ………………………………………………………………………….46

Annexure 1: List of few fintech startups in India…………………………….46

Annexure 2: List of few government schemes launched to develop and encourage

entrepreneurship in India…………………………………………………………….47

7. References………………………………………………………………………....48

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 INTRODUCTION

Technology has really changed the world to an unimaginable extents very rapidly, and it seems that the
changes never stop. Apart from seeing considerable improvements in the spheres of computer technology,
production and telecommunication, the new technologically advanced age changed the world of finance
and education. There can be seen a gradual increase in these two areas.

1.1 FinTech

India has just surpassed China as Asia’s leading financial technology (FinTech) market. India is
undergoing the ‘FinTech Boom’, having risen to become world’s second-largest fin-tech hub (behind only
the US).

Fintech is a term that was coined to describe the new wave of financial technology. In the past, the
financial world was very traditional, but Fintech is changing all of that. Fintech is the new wave of
technology that is revolutionizing the world of finance. Digital payments, digital lending, BankTech,
InsurTech and RegTech, and crypto currency are some of the most important FinTech areas. FinTech
today spans a variety of sectors and industries, including education, retail, banking, nonprofit fundraising,
and investment management, to mention a few.

FinTech is currently one of the fastest growing areas in terms of both business growth and job creation. In
addition, FinTech can aid in the advancement of the objective of financial inclusion. In Indian startup
ecosystem, this is one of the field in which Indian startups are performing well and every year new
FinTech startups are continuously springing up in startup ecosystem. Government policy framework is
not only giving a push to this vibrant ecosystem but also creating a propagative environment of
opportunities.

1.1.1 Types of FinTech companies in India

 Digital/Mobile Payments
These payment options provide access to make digital payments and trade with banks, commercial
companies, central banks, investment management funds and investors.

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 Insurance
FinTech has disrupted the majority of services in the financial industry and insurance is no exception.
The “InsurTech” industry is attracting a hefty investment from venture capitalists all around the
world.
 Crowd funding
These platforms allow entities to raise money from internet or app-based users for their business
operations. Fintech service allows the individual business owner or established entities to pool funds
from different resources from one platform.
 Digital lending
The digital lending sector is considered as the most progressive arms of the Fintech revolution. The
consumers can now get loans and advances using their smartphones. The lengthy procedure has been
reduced to a few clicks.
 Stock trading apps
These are the platforms that enable the user to buy or sell stocks at the tap of their fingertips.
Thus, reducing the complexity and time taking procedure of buying or selling stocks into a
process of few taps of their fingertips.
 Robo advisors
The robo advisor segment of Fintech is a confluence of AI and financial concepts. It is a wealth
management program that uses AI to function. It advises consumers to manage their wealth in
most profitable manner.

The concept of remote work culture has lately been established in the banking business, and it will
continue to exist in the post-Covid era. Banks are attempting to implement more thorough business
continuity plans in order to prepare for unforeseeable events such as the current crisis. This incorporates a
combination of digital workplaces, cloud scalability, inherent security, and increased network capability.

Despite these gains and opportunities, banks are hampered by a severe skills gap and a lack of qualified
personnel to fill new positions. It emphasizes the importance of up skilling and reskilling banking
professionals and freshers in order to have a workforce that is future-ready. All parties, including the
industry, banks, employees, and educational and training institutions, are working together to achieve this
goal.

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1.2 EdTech

India is a major player in the global education industry. It has one of the largest higher education
networks in the world with ~260 million students enrolled in >1.5 million schools and ~39,000
colleges, primarily dominated by the private sector. Online education is a growing trend in education,
as it allows students to complete their basic and secondary educations at their leisure. It is also
convenient as it eliminates the need for travel and accommodations.

This flexible mode of education allows working professionals to complete their degrees at their own
pace. It is also more cost-effective and is available to students who cannot afford a traditional college
degree. In addition, companies are increasingly encouraging their employees to improve their skills
through online education. According to the co-founder of UpGrad Mayank Kumar, e-learning
platforms are becoming more prevalent and beneficial for both students and employees. The EdTech
market is expected to grow at a robust rate of 8x to 10x in the next couple of years due to the massive
adoption of online learning since the pandemic.

The NEP 2020 acknowledges the need to improve the efficiency and effectiveness of online
education through carefully-designed pilot studies. It also encourages the use of existing digital
platforms and the formation of effective teachers. In August 2020, Byju’s, a tech platform owned by
Learn, acquired WhiteHat Jr., a coding platform in $300 million deal. The acquisition was made to
enable students to easily learn coding. The NCTE's 2020 vision is to put a stop to the fragmentation
of higher education and transform it into a multi-disciplinary institution that will have over 3,000
students. This will enable students to become all-around individuals.

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 1.2.1 Top EdTech startups in India
 Byju’s
Byju’s has become India’s largest education technology (learning) company by reinventing the
way students learn, through its learning app, with >3.5 million students on the platform. The
learning app offers original content, watch-and-learn videos, animations and interactive
simulations. The company raised US$ 75 million from Sequoia Capital and Sofina. “The main
idea behind starting BYJU’S was to make learning accessible, effective, engaging and
personalised for everyone,” said Byju Raveendran, founder of Byju’s.
 Classplus
It is a Delhi-based startup, founded in 2018 to digitize India's tuition system. The company
enables teachers to collaborate with their students through a mobile app. Its robust app features
include video lectures, online tests, and messages.
 Doubtnut
Doubtnut is a Delhi-based startup that offers online learning solutions in multiple languages. Its
solutions are powered by machine learning and image recognition. Through its data-driven
approach, the company was able to reach 10x revenue growth in just five years.
 Meritnation

It is an online education portal that provides interactive study materials for K-12 students. The
website has crossed 10 million users and claims to be adding 8000 new K-12 students every day, of
which >60% are mobile users. In addition, 30% users are from Tier-2 cities and below. Meritnation
reported revenue worth US$ 3.2 million in 2014-15.

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 FINTECH: FIVE YEARS FROM NOW

In terms of technical advancements and altering client behavior, the banking business is undergoing a
massive upheaval. FinTech firms have revolutionized this shift by developing novel products and services
to meet the needs of a wide customer base, resulting in the financial inclusion of previously unbanked or
under banked communities, as new digital solutions transcend traditional boundaries of urban settlement.

In India, banks frequently ensure that new technology are included into their business and operations.
Banks were among the first to adopt technology such as ATMs, online banking, mobile banking, and
point-of-sale (POS) terminals. FinTech companies have disrupted the financial services market by
infusing a variety of cutting-edge technologies into their goods and services.

The COVID-19 crisis hastened digital change in the country, as social distancing norms threatened to
disrupt branch operations, forcing banks to rely on remote solutions for customer-facing activities. During
the epidemic, app-based digital payment companies, e-wallets, and payment banks grew their businesses.
They also began to offer savings products, such as PayTM Payment Bank, as well as the rise of new
lending providers for micro-loans (which used to be a traditional bank's forte), and new FinTechs began
to offer credit and Forex products to individuals without the requirement for a bank account.

FinTech developments such as e-wallets, payment gateways, UPI, peer-to-peer lending, and others have
enabled a more smooth banking experience for a wider consumer base. Customers increasingly expect
banks to enhance digital interactions and develop digital alternatives for their everyday banking needs,
since they are more willing to test out a new app than they were previously.

As a result, banks are experimenting with customer-engagement platforms such as social media and
messaging services in order to grow their companies. WhatsApp banking, for example, is now a reality,
and other social media channels are being used to create client relationships.

Despite these gains and opportunities, banks are hampered by a severe skills gap and a lack of qualified
personnel to fill new positions. It emphasizes the importance of up skilling and reskilling banking
professionals and freshers in order to have a workforce that is future-ready. All parties, including the
industry, banks, employees, and educational and training institutions, are working together to achieve this
goal.

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3.1 The History of FinTech

Contrary to common assumption, combining technology and financial services is not a 21st-century
breakthrough. With the invention of the ATM and credit cards in the 1950s, the FinTech sector was born.
Due to the dominance of banks as financial service providers, the FinTech business was viewed as a
natural extension of established banking services rather than a mainstream trend.

The emergence of the Internet and e-commerce business models in the 1990s paved the way for online
retail websites to progressively replace the previous phone-based retail merchandise paradigm.
Furthermore, the growth of organizations that support institutional financial services heralded the merging
of technology and finance, with firms like Bloomberg providing financial analytics tools and Reuters
covering business and financial news.

These advancements created the foundation for the financial services that we have come to expect in the
twenty-first century. However, as capital markets mature and the economy grows, the FinTech business
has expanded far beyond the conventional sphere of financial services of previous decades, infiltrating
people's daily lives.

3.2 Evolution of FinTech in India

1. 1991-2000

The Indian Government began to liberalise the Indian Banking Industry with the introduction of
technologically savvy banks. Various payment technology was pushed such as MICR, electronic

2. 2000-2005

Funds transfer to boost the banking sector but most of them were government driven and lacked
financial innovation.

FinTech’s began to dominate the US and UK landscape, they started penetrating in the Indian
banking Industry by offering various consumer centric services. FinoPay Tech and EKO India were
the two major start-ups that built their model around the banking correspondent model (BC Model)
which was used to increase penetration in rural areas at lower cost using basic technology with the
help of agents.

3. 2005-2010

This period witnessed the emergence of major fintech start-ups such as Oxigen, Paytm, Free charge,
Mobikwik in the field of mobile wallets-bill payment and mobile recharge services

4. 2010-2014

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 From 2010, there have been multiple fintech start-ups that have mushroomed in different segments
such as lending (100+), personal finance management (40+) and investment management (90+) start-
ups.

5. 2014-2019

Demonetization introduced in November 2016 is considered as the biggest boost to Fintech in India
and Introduction of India stack (Aadhaar / eKYC / UPI / eSign etc) simplified as well as disrupted
Payment, Lending, Insurance and Wealth business. While wallets collapsed due to UPI, Lending
FinTech’s/InsurTech prospered. Wealth business went through challenges due to direct plans of
Mutual Funds.

6. 2019-till date

India stack continues to positively impact FinTech’s with newer services. NeoBanks have emerged as
a segment of choice for investors. Neo-Entrants are introducing “Fintech as a service line” in their
current business models by either developing it organically or buying out FinTechs. Lending start-ups
are going through the evolution phase. Complex areas like Trade Finance and B2B start-ups are
getting support in the new wave.

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PILLARS OF A FINTECH ECOSYSTEM

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 FINECH IN INDIA

India is evolving into a vibrant environment that provides finance start-ups with a platform to possibly
become billion-dollar unicorns. FinTech start-ups in India are pursuing a variety of goals, including
expanding into new segments and exploring international markets.

The traditionally cash-based Indian economy has reacted warmly to the FinTech opportunity, which has
been fueled by an increase in e-commerce and smartphone adoption. India's growth surge may not be on
pace with its worldwide equivalents, but it is well-positioned, thanks in part to a solid talent pipeline of
easy-to-hire and low-cost tech workers.

FinTech services have revolutionized the way businesses and consumers conduct ordinary activities, from
wallets to financing and insurance. As these patterns become more widely adopted, India becomes a more
appealing market globally.

4.1. Ecosystem Coverage of the Indian FinTech Sector

Government

The financial technology (fintech) space in India has seen an exponential growth over a few years. With
the establishment of an innovation-friendly startup ecosystem, supportive government laws and policies,
and a huge market base, the Government of India (GOI) has fueled the expansion. Fintech businesses are
for the first time posing a serious threat to traditional banks and NBFCs. The Government of India along
with regulators such as SEBI and RBI are aggressively supporting the ambition of the Indian economy to
become a cashless digital economy and emerge as a strong FinTech ecosystem via both funding and
promotional initiatives.

Some of the leading fintech space services and technologies (apart from that for cryptocurrency and
software services) in India are:

Remittance services

Both outbound and inbound remittance transaction are being taken up by start-ups including
FX, Instarem, Remitly and others, which pose a challenge to giants such as MoneyGram and Western
Union.

Personal finance and loans

Several websites, Loanbaba among them, have come up that are helping people access quick loans within
24 to 72 hours.

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Payment services

Web and mobile apps for accepting and transferring payments from businesses and individuals saw a rise
after the demonetisation drive in 2016. Some fintech firms that saw a peak from then on
are Paytm, Mobikwik and Oxigen Wallet.

Peer-to-peer (P2P) lending

A P2P lending platform allows borrowers and lenders to communicate with each other for lending and
borrowing cash, regulated by the Reserve Bank of India (RBI) norms. Many companies have jumped to
this opportunity.

Equity funding

Crowdfunding platforms are also proliferating and adding to the finance community initiatives; for
example Start51 and Wishberry.

Funding Support

• The Start-Up India initiative launched by the Government of India in January 2016 includes USD 1.5
billion fund for start-ups.

Financial inclusion and enablement

• Jan Dhan Yojana: added over 200 million unbanked individuals into the banking sector

• Aadhar has been extended for pension, provident fund and the Jan Dhan Yojana.

Tax and surcharge relief

A few notable initiatives on this front are:

• Tax rebates for merchants accepting more than 50% of their transactions digitally.

• 80% rebates on the patent costs for start-ups.

• Income tax exemption for start-ups for first three years.

• Exemption on capital gains tax for investments in unlisted companies for longer than 24 months (from
36 months needed earlier).

• Surcharge on online and card payments for availing of government services proposed to be withdrawn
by the Ministry of Finance.

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Government schemes for fintech world

The Government of India created a regulatory framework in the nation that encouraged new firms to take
the lead and build a name for themselves in the financial industry. In 2018, more than 125 fintech start-
ups were successfully launched. This is apparent in the growth in investment and funding by both foreign
and domestic banks, as well as the ground for India's fintech start-ups to fund payment wallets, finance
tools and other financial services.

 For technology innovators, the GOI has launched initiatives such as National Payments Council of
India (NPCI), Digital India Program, and Jan Dan Yojana.

 There are tax benefits for businesses and consumers as well on e-payments as surcharges on
electronic transactions stay relaxed.

 The authentication requirements for the same also show the active effort of the government towards
strengthening the fintech space in India.

IP facilitation support

• Startups will get support from the government in expenses of facilitators for their patents filing,
trademark and other design work.

Investments

According to a new KPMG report, India saw $2.7 billion in fintech investment in 2020. It was also the
second-highest amount ever recorded. The investment had peaked at $3.5 billion in 2019.

The majority of investments were made in the first half of the year, according to the report. However,
companies like Pine Labs and Razorpay raised significant amounts of money in the second half. Both of
these businesses have raised $100 million in funding.

Payments were the most popular fintech category in India, according to the survey. The other two most
popular categories were insurtech and wealthtech.

The initiatives aimed towards startups that were unveiled in the Union Budget. The administration has
already promised a one-year extension of tax vacations for startups till March 2022. It also planned to
encourage the formation of one-person businesses (OPCs). The government has unveiled a $1.500 billion
plan to expand digital payments even farther across the country.

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 Image: Fintech investments in India (KPMG)

India has the highest FinTech adoption rate globally

Indian FinTech is one of the top three markets in terms of capital funding and investments in the sector
(behind the United States and the United Kingdom), with nearly USD 3.1 billion in funding in2019, up
from USD 1.8 billion in2018, and a global adoption rate of 87 percent, which is higher than the global
average of 64 percent. Payments have been at the forefront of India’s digital revolution, with digital
payment transaction volumes (worth USD 3.5 trillion) touching approximately 24.13 billion in 2018.

The November 2016 demonetization push, as well as the lucrative returns on mobile wallets and UPI
transactions (which led to their widespread adoption), have been instrumental in propelling exponential
development in digital transactions. In addition, the advent of digital commerce, AI-driven payments,
block-chain, the Internet of Things (IoT), and real-time payments; and the introduction of mobile point of
sale (POS) devices have led to a reduction in the cost of acceptance infrastructure and also contributed to
growth.

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As of May 2021, India’s United Payments Interface (UPI) has seen participation of 224 banks and
recorded 2.6 billion transactions worth ~$68 Billion representing a jump of 15x from just 3 years ago for
the same period in 2018.

Start-ups

A successful fintech environment requires the evolution of start-ups. Consumer desire for digital financial
goods, the widespread adoption of linked devices, and venture capitalist assistance have all aided the
growth of fintech startups.

While start-ups use their cutting-edge technical capabilities to reimagine financial services operations,
incumbent businesses are following suit and investing extensively in developing new products of their
own. The trend is evolving away from startups being perceived solely as disruptors and toward them
being seen as change catalysts. As a result, there is more collaboration between different stakeholders in
the ecosystem and start-ups being seen and expected.

Fintech start-ups, on the other hand, must show our regulatory bodies that they can help society by
providing adequate proof to the public, institutions, and regulators that they can be controlled and
supervised in a sustainable manner

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India has ~2,200 fintech start-ups. Bengaluru and Mumbai lead the momentum in FinTech, and
together, these cities represent 42% of the start-up headquarters. Apart from the top five FinTech
destinations, which include Mumbai, Bangalore, New Delhi, Gurugram, and Hyderabad, the rest
of India accounts for 738 FinTech start-ups.

City Wise Breakup (Top Ten Cities)

City Number of Fintech Head quarters

Bengaluru 447

Mumbai 437

Delhi 208

Hyderabad 133

Gurugram 128

Chennai 104

Pune 88

Noida 77

Kolkata 47

Ahmedabad 35

Between January and July 2020, fintech investments reached $1.47 billion which is
approximately a 60% jump when compared to 2019. The last 4-5 years have been golden for the
fintech business and India is definitely on a path of thriving success in the following years.

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Financial institutions

The fintech sector is having a huge impact on the Banking, financial services and Insurance (BFSI)
community (which includes banks, NBFCs, and other organizations). Fintech is increasingly seen as an
enabler rather than a disruptor by the incumbents. Large banks are leveraging the startup environment to
incubate and build partnerships on a number of platforms, including wallets, investment intermediation,
and online customer services. They are not only creating platforms for such start-ups to succeed, but they
are also helping them to grow. However, they are beginning to invest in such platforms as well.

To deal with the many facets of this expanding disruption in India, incumbents in the BFSI sector are
pursuing a four-pronged strategy:

Investment driven

The BFSI sector is gearing for both acquisitions and fundingbased routes to increase its presence in the
emerging fintech space.

Partnership driven

Partnerships by fintech product firms (in point-of-sale hardware, credit deals and social lending) with
banks with a synchronized go-to-market strategy are addressing the immediate demand of digital-age
consumers.

Market driven

To counter a steady challenge by venture backed fintech firms, many incumbents are augmenting their
value chain with competing offerings and leveraging their own distribution and client base.

Collaboration driven

Setting up, managing or investing in centers of excellence and fintech hubs is an excellent strategy to take
an inside view of the emerging fintech firms’ working, and to nurture talent for a future competitive
advantage.

Incubators, accelerators and innovation labs

India has the 3rd highest number of incubators with over 250 incubators being present in India. Young,
first-generation entrepreneurs are driving the industry, which is now competing with the major financial
institutions in a very competitive, cost-conscious Indian market. As a result, incubators, accelerators, and

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sponsored innovation laboratories play a key role in India for not only funding but also mentorship and
peer connections but also financial industry exposure and soft skills.

In 2017, National Association of Software and Service Companies found over 140 incubators in India and
placed the country third in the world for the number of incubators, behind the United States of America
and China. By October 2020, this number had multiplied. Incubators are predominantly housed within
academic institutions (such as Indian Institutes of Technology, Indian Institutes of Management,
universities) or as part of industry bodies and organizations (such as Nasscom) and research agencies
(such as Centre for Cellular and Molecular Platforms).

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Users

Customers in India (both consumers and businesses) have embraced fintech services at an unusually rapid
rate. Decades of cash, branch banking, and relationship-driven service expectations are quickly being
replaced by greater cashless transaction ticket sizes, full-suite mobile banking, and personalised advise
and service regardless of location, language, or grade classifications. The change is coming from different
fronts, such as:

Mobile and Internet coverage

India has seen significant growth in both the number of smartphone users and internet users over the past
few years. Example:

• India is ranked second in terms of the number of smartphone users and this deep penetration into the
Indian population base offers fintech firms an opportunity to address the legacy issues of low banking
penetration (53 per cent) and dormancy (43 per cent) in the Indian Banking sector.

Digital payment processing in public services

In the current governmental framework, the Indian public has been directed to new levels of inclusion.
With bigger services like as remittances and pension disbursement openness to direct-to-user subsidies is
predicted, as well as direct-to-user subsidies. Fintech's data-heavy, transparent processes. Example:

• Railway booking (IRCTC) tie-up with Paytm Wallet may bring 1+ crore fintech user base annually.
Maturity of e-commerce to handle larger ticket-sizes.

Maturity of e-commerce to handle larger ticket-sizes

In India, e-commerce has established itself, and it is now trusted to deliver large-ticket items in Tier I and
II cities without the safety net of Cash-on-Delivery. The adoption of payment processing by fintech firms
will be aided by this shift in Indian mindset. Example:

 Paytm Money said it plans to expand its user base to 10 million and register more than 75 million
transactions in the fiscal year 2021-22.

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Universities and Research Institutions

Academic institutions must instil entrepreneurial mindsets in India's young technical talent in order to
create a thriving inventive ecosystem. Individual entrepreneurial cells do exist in Indian colleges, but they
are mostly student-run and require more administrative support to make an impact.

The leading institutions in India have consistently led the administration and management led initiatives,
setting up events, competitions and courses. While some Indian academia and research institutions are
setting up funds and incubators, matching the scale of their global counterparts will require more, and
perhaps external resources, given India’s subsidized higher educational model.

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4.2. Attributes of a successful fintech hub

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4.3. Impact of covid on Indian FinTech market

• The Covid-19 outbreak, like demonetization in 2016, is a watershed moment for fintech companies.
After a claimed slowness caused by the virus, it has relaunched digital or contactless payments.

• COVID-19 has had a significant impact on the mortgage industry. Despite the fact that the pandemic has
increased Indian clients' adoption of digital financial products, neobank new account openings were
already higher than pre-Covid levels.

• Established banks and insurance firms have made significant investments, resulting in acquisitions and
further investments from investors in 2020. Partnerships between FinTechs and banks will gain traction in
2021, according to the Finance Minister's call for banks to embrace a Co-origination model.

• Challenges for Fintech startups in the middle of COVID19:

o The pandemic has disrupted many FinTechs' business models;

o FinTechs are likely to face a prolonged period of softened demand as consumption decreases across
India;
o Startups are struggling with new business origination due to travel restrictions.

• The majority of fintech companies have used the following strategies:

o New goods were launched; old products were improved/optimized.

o Targeted and identified new customer segments.
o A more customer-focused approach.

• By the fourth quarter of 2021, firms are anticipated to have Gross Non Performing Asset (GNPA) levels
that are 3 to 4 times higher than pre-pandemic levels, with some spillover into the next fiscal year.

• Given the projected liquidity pressure in the first half of the year, co-lending cooperation might become
a key issue in the future years. Many players can seek out major banking partners in Q4 to attain pre-
COVID-19 volume levels and then grow from there, but their collection efficiency and performance
during these test periods will be the deciding factor.

• In the Union Budget 2021, government of India announced the setting up of a FinTech hub in Gujarat
International Finance Tec (GIFT City). The FinTech Hub will help create around 150,000 jobs and
accelerate the use of artificial intelligence, machine learning, etc. It will drive tech-enabled tax
functioning which will illuminate the increased importance of digitization.

• The budget 2021 also allocated INR 15 billion to support and boost digital payments. Creating a ‘bad
bank’ is also an interesting move, aimed at moving bad assets of banks to an asset reconstruction

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company (ARC) and an allied structure to buy out and turn around stressed assets, particularly of public
sector banks (PSBs).

4.4. Future outlook of Indian Fintech Market

Both Fin Techs and incumbents have enormous potential to revolutionize the financial services sector and
boost India's economy by driving the consumption narrative over the next five years. However, in this
digital economy, an organization's ability to innovate, as well as its ability to manage relationships with
both financial and non-financial services providers to deliver financial solutions at the point of
consumption and promote adoption, will determine its success.

Increasing geopolitical tensions between the United States and China, as well as the pandemic, can serve
as a cornerstone for the Indian Fintech ecosystem to grow at an exponential rate, as the country stands to
benefit directly in attracting companies to migrate and grow in a robust, dynamic, and immune to
economic and political setbacks ecosystem.

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 EDTECH IN INDIA

EdTech (a blend of "education" and "technology") refers to hardware and software designed to improve
student learning outcomes by enhancing teacher-led learning in classrooms. EdTech is still in its infancy,
but it has the potential to tailor a curriculum to a student's skill level by introducing and reinforcing new
knowledge at a speed that the student can handle.

The potential of EdTech is enormous, given the country's growing use of Internet services and cellphones.
The industry is predicted to increase at an exponential rate over the next five years, as evidenced by rising
demand for technology-based solutions from the government, as well as parents and students. According
to a survey by KPMG and Google, internet searches for education have increased by twofold in the
previous two years, with 44 percent of education searches coming from outside the top six metro centers.
Online instructional tools are also becoming more popular. The market for online primary and secondary
supplemental education is predicted to increase at a 60 percent compound annual growth rate (CAGR) to
$773 million by 2022.

PROMISING TRENDS IN EDTECH IN INDIA

In India, there is already a rising supply of EdTech solutions, and the central and state governments have
made beginning efforts into individualized learning and the establishment of digital classrooms in
government schools. Despite the growing interest and creativity in this field, India's acceptance and
scalability of EdTech confront a number of obstacles.

EdTech is much more than merely reformatting books and training manuals, or even unique technologies.
It's all about using digital technology to create a new learning architecture. An architecture that takes

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advantage of the internet's social reach to give individualized learning and training that adapts to an
individual's learning abilities automatically and that makes use of big data analytics to figure out the most
efficient ways for students to improve.

EdTech has the ability to enhance efficiency, lower costs, and enable new levels of standardization and
democratized access by transforming the old architecture of education. As we continue to grow the
knowledge economy, it is set to impact the future of how education is resourced, taught, consumed, and,
ultimately, the outcomes that it can produce - both for individuals and for society as a whole.

The sector has previously gained a lot of traction, but since the COVID epidemic, the edtech business has
grown at an exponential rate. The edtech business has piqued the interest of investors all around the world
as a result of its rapid expansion. The edtech sector will get $16.1 billion in venture capital financing in
2020, up from $500 million in 2010.

After China and the United States, India has emerged as one of the top three nations in the world for
edtech venture capital financing. The Indian edtech sector received an investment of $ 2.1 billion in the
calendar.

5.1. Growth trends in the EdTech industry in India

2020 will be a milestone year for education across the world, but especially in India. The skeptics have
been silenced, and officials have made significant progress toward creating an India where "education
inclusion" is a top priority.

Low cost of online education

Online education is less expensive than traditional education (school, college). Students have access to a
variety of e-learning systems via which they may obtain high-quality education at a low cost. Because of
the cost element, students from all socioeconomic backgrounds and social classes may benefit from a
high-quality education with appealing visuals and expert teachers.

Government’s Digital Initiative To Promote E-learning

The Indian government is working hard to encourage online learning in the country through programs like
SWAYAM and DIKSHA.

In addition, because to the country's lockdown limitations, the Indian government has been urging heads
of Higher Educational Institutions to transition to online means of instruction in order to avoid disrupting
academic sessions.

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DIKSHA (Digital Infrastructure for Knowledge Sharing), an initiative of the National Council for
Education Research and Training (NCERT), Ministry of Education, is a national platform for school
education that can be accessed by learners and teachers across the country and currently supports 18+
languages and the various curricula of NCERT, CBSE and SCERTs across India.

SWAYAM is a program that aims to accomplish Education Policy's three cardinal principles: access,
equity, and excellence.

The program's goal is to make the greatest teaching-learning tools available to everyone, even the most
disadvantaged. SWAYAM allows students to access all classroom courses from Class 9 through post-
graduation from any location and at any time.

Ms. Nirmala Sitharaman, India's Finance Minister, introduced

'Pradhan Mantri e-VIDYA,' a digital education program, in
May 2020 to increase interest in edtech startups. This initiative
enables students, particularly those without internet access, to
learn through television and radio.

Ms. Sitharaman also announced initiatives such as Swayam

Prabha, a program with 12 new TV channels (one for each
grade from K to 12), an unprecedented step toward expanding
the reach of educational content for Indian households, particularly those with limited access to high-
speed internet connections for unrestricted learning content consumption. This program is intended to
boost eLearning usage in India considerably. Students will become acclimated to learning outside of the
classroom and e-learning if they have access to channels that broadcast digital information 24 hours a
day, seven days a week.

Growing internet user-base

As of February 2021, India has about 624 million active internet users. For edtech stakeholders, these
engaged users represent a tremendous growth potential. Online tutoring and competitive test preparation,
particularly in Tier 3/4 cities, have the potential to develop rapidly. With a larger target audience, every
area of the edtech business may benefit from increased growth opportunities.

Increasing number of edtech startups

According to Tracxn, a startup and private company tracking tool, India has over 6,950 EdTech startups.
These edtech firms provide smart classroom solutions, adaptive learning platforms, learning management
systems, and collaboration platforms by leveraging technology to provide the finest services. All of these

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reasons, along with inflows of capital, acquisitions, product upgrades, and more players swiftly moving
and adding students, are speeding up the digital learning trend in our country.

VC firms backing the edtech industry in India

o Blume Ventures

Blume Enterprises is an early-stage VC firm that backs businesses with both investment and active
mentorship. It supports the next wave of innovative founders and ventures from India. Typically, the
Blume has sponsored 145+ businesses thus far, with 22 of them succeeding.VC Company invests in tech-
driven businesses led by entrepreneurs that are concerned with solving difficult issues, are distinctively
Indian, and have a big market effect. In the edtech space, Blume has invested in 6 startups,
namely Classplus, Unacademy, UOLO, Mastree, FlipClass and Leverage Edu.

o Accel

Accel is one of the most active investors in India's edtech sector. Accel, formerly known as Accel
Partners, helps with businesses in need of seed, early, and growth-stage funding. The company includes
edtech firms including Vedantu and SplashLearn in its portfolio, with offices in Palo Alto and San
Francisco with other operating funds in London, India, and China.

o Lightspeed India

Since 2004, Lightspeed India Partners has made direct and cross-border investments in Indian firms. The
consulting team of the VC business comprises offices in New Delhi, Bengaluru, and Singapore.
Lightspeed India invests in early-stage companies in India and Southeast Asia, with a focus on technology
and technology-enabled businesses that target consumers, small businesses, and enterprises. The edtech
portfolio of Lightspeed India includes BYJU’S, FrontRow and Teachmint.

o Omidyar Network India

Omidyar Network India, a subsidiary of the Omidyar Group, invests in early-stage companies and gives
grants to non-profits in the fields of digital identity, emerging technology, education, financial inclusion,
governance and citizen engagement, and property rights.

The edtech portfolio of Omidyar Network India includes Vedantu, WhiteHat Jr., Aspiring Minds, Centre
for Teacher Accreditation (CENTA®), Doubtful, Varthana, UOLO, Kutuki and Masai School.

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o Sequoia India

Sequoia India has been a front runner and one of the most notable investors in the Indian startup
ecosystem for more than a decade.Sequoia India invests in both new firms finding their stride and well-
established organizations aiming for the next stage of growth, assisting bold entrepreneurs across India
and Southeast Asia in building legendary enterprises.

The edtech portfolio of Sequoia India includes BYJU’S, Cue Math, Unacademy, Eruditus, Doubtnut,
Classplus, among others.

 Some key shifts that happened in 2020 and how they have prepared the ground for a quantum leap for
EdTech in 2021 as a nation builder for the future are as follows:

2020: the year gone by

The new National Education Policy was adopted in July 2020, and EdTech businesses received
approximately USD 2.2 billion in financing. Opens the door for technology to play a significant role in
increasing the inclusivity of higher education and developing new strategies to improve learning. The
number of EdTech firms has surpassed 4500. Players discovered new specialized niches to cater to
specific requirements, and growth that would have taken a few years was compressed into less than a
year, resulting in rapid adoption. Hiring in the EdTech industry considerably exceeded that in most
industries.

Higher Education and Reskilling

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The demand for re-skilling for employees across industrial domains to ensure they stay ahead of the pack,
as well as the NEP2020, which permits Top 100 Universities based on NIRF rankings to provide Degrees
online, will drive enormous development in the Higher Education and Executive Education industries in
2021. This means that under the new NEP2020, a learner sitting in Kanyakumari can get an online degree
from a Top-100 University based in say Delhi or Mumbai or elsewhere and be eligible for a government
job too.

This is the first time the government has approved online degrees, and it will stimulate unprecedented
levels of democratization and inclusion in education. The reality that businesses will require new talents
in order to expand will boost the Executive Education segment in unprecedented ways.

Digital Learning will start bridging the teacher skill gap in India

India has a shortfall of over 5 Lakh teachers even at current GER of 26.3% as per AISHE 2018-19 if the
TPR (Teacher Pupil Ratio) was to be at 1:20 instead of current 1:29.This shortfall is in addition to the
skill gaps that exist and the growth that will be witnessed due to the increase of GER from current 26.3%
due to Online learning. The answer lies in Digital Technologies bridging this gap through the enhanced
reach of the best faculties from the finest institutions using EdTech as the enabler.

Tier 2 and tier 3 markets to grow faster than metros for edtech

Even today, this is obvious, as 45 percent of learners for Talent edge, a leader in the Higher Education
and Executive Education area, originate from Tier 2/3/4 markets rather than metros. With the availability
of high-quality education online, this trend will once again fuel huge development for all EdTech
providers.

According to a recent KPMG report based on the AISHE 2018-19 (All India Survey for Higher
Education), there will be over 1.5 million learners in the Open and Distance Learning Model, who will be
served by EdTech interventions such as the creation of Live and Interactive learning by Higher Education
Institutions.

Hybrid models

There will be a confluence of online and traditional learning approaches. Supplementary education, such
as after-school coaching, e-tutorials, internships, and live projects, will be extensively promoted by online
course providers. They'll also connect with students in offline settings like group discussions and
laboratories. Virtual classrooms will be available, allowing traditional offline education to be enhanced by
digital courses on practical knowledge and soft skills.

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Addition of new and offbeat subjects: apart from popular subjects such as data science, cloud computing,
and digital marketing, the e-learning curriculum will offer courses in vocational subjects such culinary
management, forensic science and cyber law.

Gamification

The digital courses include elements such as badges, discounts, and leader boards to make learning more
engaging, competitive, and rewarding for academic students and professionals.

Companies, educational institutions, and eLearning platforms intend to collaborate on content

development.

Peer-to-peer learning and profile mapping

E-learning providers will create a peer-to-peer model to foster collaborative learning among students by
allowing them to exchange notes and ideas on a common platform. Artificial intelligence, big data, data
analytics, and face recognition will be utilized to provide personalized lessons based on a user's profile.

5.2. Key EdTech startups in India

I. BYJU’S

Byju’s has become the household name for Education online. It is the common name of the
company Think and Learn Private Ltd. Started as a coaching class, Byju’s has grown into one of
the top EdTech companies in the world. This EdTech startup founded by Byju Raveendran and
his wife Divya Gokulnath in Bangalore. They have also collaborated with companies like Disney
to make learning truly fun.

They use engaging video lessons, personalized learner’s journeys, unlimited practice sessions and
engaging questionnaires to make learning truly fun. BYJU’s covers a wide variety of classes
starting from class 4 up to CAT or IAS test preps. Online classes for UPSC, K3, K10, K12,
CBSE NCERT, ICSE, IIT-JEE & NEET.

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 They also have a learning app for kids called BYJU’S for kids which focuses on early learning
for kids in classes 1-3. They currently have more than 9,000 employees and a revenue of 520
crores INR. Few of their well-known subsidiaries are WhiteHat Jr. and SPAN Thoughtworks
Private Limited.

II. Educomp

It is India’s largest education firm and the only one with a presence throughout the whole
education ecosystem. Since 1994, Educomp has served more than 30 million students and
instructors in 65,000 institutions. The firm is a market leader in K-12 digital content solutions.
The Educomp Smart Class, the company’s main product, is a VSAT (very small aperture
terminal)-based instructional content solution for teachers and focusses on K-12 courses and test
preparation. It claims to have improved educational outcomes in private schools. It generated revenue
worth US$ 91 million in 2015-16.

III. CueMath

Cuemath is an ed-tech company founded in 2013 as an after-school math enrichment program.

They are one of the Edtech startups in India that focuses on gamified learning and has
revolutionized the way math is perceived by both teachers and students. It has a ‘learn-by-doing’
approach. It also aims to promote ‘out of the box’ thinking and love for math among school
children.

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 Company founded by Manan Khurma, who is also an acclaimed writer with McGraw Hill
publications. Cuemath also empowers women tutors and provides them with meaningful
employment opportunities. Cuemath has over 1200 educators until the date of writing this article.
The company has raised 5.5 million dollars in series B funding until 2019.

IV. Doubtnut

Doubtnut is one of Edtech startups in India that makes it easier to learn a language. This online
multilingual learning app makes use of cutting-edge technology to solve student’s queries.

Doubtnut makes use of NLP and image recognition in the field of AI to achieve this. It can
currently answer questions in 11 Indian languages, making it extremely popular in Tier-2 and
Tier-3 cities. In January 2020, the company raised 15 million in series a funding.

V. Meritnation

It is an online education portal that provides interactive study materials for K-12 students. The
website has crossed 10 million users and claims to be adding 8000 new K-12 students every day,
of which >60% are mobile users. In addition, 30% users are from Tier-2 cities and below.
Meritnation reported revenue worth US$ 3.2 million in 2014-15.

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5.3. Key global EdTech startups

I. Coursera

Coursera, founded by Stanford academics, is a for-profit educational institution with 15 million

members in 190 countries. The app includes over 1,000 courses from top institutions all around
the world. Coursera's courses are free, however there is a modest cost to obtain a "Course
Certification" upon completion of the course. This is used to attract employers and is factored
into your overall college score credits. The company has a revenue stream of US$ 1 million per
month.

II. Udacity

Sebastian Thrun established Udacity, a for-profit educational organisation. It boasts a user base of
4 million people and has garnered $160 million in financing. Apart from university
collaborations, Udacity focuses on business engagement and provides tech-focused "nanodegree"
programmes. It aims to monetize its products by charging students a proctored test fee in
exchange for recognised certificates.

III. Pluralsight

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 Pluralsight is an online education business that offers software development, IT administration,
and creative professions a variety of video training courses. It is headquartered in New Mexico,
USA, and was formed in 2004.

IV. Skillshare

Lectures are led by industry professionals and emphasize hands-on learning. These non-accredited
classes welcome anybody who want to learn. The majority of courses emphasize interaction rather
than lecture, with the primary aim being learning via the completion of a project. Creative arts,
design, entrepreneurship, lifestyle, and technology are the primary learning categories. It has raised
$22.5 million in funding and moved to a membership revenue model, featuring access to all courses
for a small fee.

V. edX

edX is a non-profit organization founded by MIT and Harvard. It collaborates with a number of academic
institutions to provide over 700 open source courses to over 7 million consumers. The business received
investment from MIT and Harvard, which each donated $30 million, as well as $10-20 million from
additional partners.

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 5.4 Challenges

Insufficient digital infrastructure

While the government has been working to develop and upgrade digital infrastructure across the country,
no significant progress has been made. According to the World Economic Forum, India has only 15
percent of the world's population. Only one out of every 100 families has Internet connection, and mobile
broadband remains a luxury. With approximately 5.5 memberships per 100 individuals, there are only a
few pupils. Furthermore, at the moment, broadband is only available in 600 corridors, mostly in and
around India's top 50-100 cities, leaving rural regions with limited connection.

Poor learning engagement

Student-teacher and peer-to-peer involvement is strong in conventional classrooms; students may

approach their teachers and fellow students for comments or conversations, and their problems can be
handled on-the-spot. Unless the courses are performed live with the assistance of an online teacher, e-
learning has not yet been effectively established to encourage open-ended or crowd learning.

Lack of standardization, credibility and quality

The lack of standardization and formal acceptance of online programs continues to be a source of
concern. Multiple courses on the same subject are offered by e-learning providers, each with a distinct
degree of accreditation, methodology, and evaluation conditions.

Different teachers create and lead online courses, and they may be granted complete authority over the
curriculum. As a result, the quality of courses varies amongst eLearning platforms. In the conventional
educational ecosystem, most online courses do not receive academic credit, legitimacy, or reputation.

Language of the courses

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India is a multilingual country where the bulk of the people lives outside of cities. The online courses are
mostly focused on English content, and they are only available to English-speaking diaspora members.
Students learning in the vernacular media have fewer possibilities to self-learn due to a lack of quality
content in regional dialects.

Low completion rates

Self-paced learning is the foundation of online courses. Due to a lack of face-to-face connection, there is
little or no incentive. As a result, online course completion rates are poor.

5.5 Strategies

Building a powerful and credible brand

It is critical for online learning companies to establish a trustworthy brand. Users must make an informed
decision when selecting a learning platform since it will affect their employment, careers, and lives for the
next 30-35 years. Because the target audience might range from schoolchildren to parents to
professionals, online learning firms must develop a strong brand perception.

Certification and Gamification

Twelve firms are delivering live games among peers or with an interactive chatbot for learning
operational improvements to keep students' attention. Companies are also providing certification on
courses as a form of incentive for pupils.

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UI/UX and content

Because customers are spending more time on applications,

content organization, categorization, and discoverability are
critical, especially with numerous streams accessible. For ease of
engagement and access, FAQs and ‘Live' chatbots are essential.

Site/App crash monitoring

To avoid fraudulent activity, businesses are closely monitoring

site and app traffic. Users expect uninterrupted learning, thus
steps are made to monitor site and app load in order to avoid
server failures when numerous students are signed in at the same
time.

Price points and packages

The cost is a critical consideration. To make courses accessible to individuals from all walks of life,
companies are giving lower/midlevel price points based on location or geography.

Partnerships

Companies are forming partnerships with select instructors

to aid in the development of brand loyalty and user
retention. In order to enhance interest, they are focusing on
both live and recorded classes.

5.6. Future outlook of EdTech in India

Due to the worldwide pandemic, schools and colleges all over the world have shifted to digital or online
learning methods to allow students to complete their education. This has the potential to irreversibly alter
conventional school (K-12) and university models. As educational institutions, teachers, parents, and
governments become more ready to use technology, the popularity of tech-enabled learning solutions in
the Indian education system will only grow. In the future, the industry is anticipated to see more activity
in terms of innovation, new initiatives, investments, and mergers and acquisitions (M&As).

New Education Policy 2020

Changes in education policy have been made in response to shifting conditions, with a focus on the
significance of harnessing technology benefits.

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Various efforts will be conducted as part of the strategy, including pilot projects for online education,
content development, digital repository and distribution, the establishment of digital laboratories, teacher
training incentives, and the need for standards on con tent, technology and pedagogy for online/digital
teaching and learning.

Covid-19 influence on the edtech market

During the COVID-19 epidemic, several government efforts such as Swayam, DIKSHA, and E-Vidya, as
well as specific state initiatives, reflect that education sector reform is a need, and that edtech firms are
the ones who have a key role to play in this transition. As a result, while edtech businesses work to
improve their digital environment in order to reach out to wider audience. The government must create
programs and changes to boost online learning in the country for students and working professionals.
Cities in Tier 2 and Tier 3 need to upgrade their digital infrastructure. With choices for translation and
transliteration of the online learning interface, digital platforms must adapt to the user experience for
regional viewers.

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 ANNEXURE 1: LIST OF FEW FINTECH STARTUPS IN INDIA

COMPANY STATE YEAR DESCRIPTION

FOUNDED
India’s largest payment company that offers consumers
Paytm Noida 2010 multi-source and multi destination payment solutions.

It focuses on the payment needs of startups and

Razorpay Bengaluru 2014 enterprise.

PhonePe is a financial technology company. PhonePe

PhonePe Bengaluru 2015 offers a UPI-based payments app as well as support for
billing, recharges, ecommerce and other online
services.
MobiKwik is an issuer-independent digital financial
Delhi services platform, the company has forayed into
MobiKwik NCR 2009 various segments of the fintech ecosystem including
digital wallets, wealth management, insurance and
more.
ETMONEY is India’s largest app for financial services
that is simplifying the financial journey of new-age
Indians. Consumers use ETMONEY to invest in Zero-
ETMoney Gurugram 2015 commission Direct mutual funds for Free, & use
ETMONEY Credit Card to take instant loans at low-
cost.
Ezetap is a digital payments startup and mPoS maker.
Ezetap Bengaluru 2011 The company makes the Ezetap device, a light-weight
card reader that can be plugged into any smart device
or feature phone used by a retailer.
It provides financial services such as investments in
Upstox New 2009 stocks, mutual funds, derivatives, commodities, EFTs
Delhi and digital gold. The company is backed by industry
giants like Tiger Global and Ratan Tata.

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ANNEXURE 2: LIST OF FEW GOVERNMENT SCHEMES LAUNCHED TO DEVELOP
AND ENCOURAGE ENTREPRENEURSHIP IN INDIA

GOVERNMENT SCHEMES LAUNCH YEAR

Startup India Seed Fund 2021

Startup India Initiative 2016

ASPIRE 2015

MUDRA Bank 2015

Ministry of Skill Development And 2014

Entrepreneurship

ATAL Innovation Mission 2015

eBiz Portal 2013

Multiplier Grants Scheme (MGS) 2013

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 REFERENCES

https://www.bing.com/search?q=role+of+technology+in+finance+and+education&go=Search&qs=ds&fo
rm=QBRE

https://2muchcoffee.com/blog/educational-technology-edtech-market-research/

https://www.iaspaper.net/startup-india-standup-india-essay/

https://www.indianweb2.com/p/complete-list-of-startup-incubators-in.html

https://www.techtic.com/blog/fintech-statistics-2020/

https://www.investindia.gov.in/sector/bfsi-fintech-financial-services

https://www.pmindia.gov.in/en/major-initiatives/

https://files.eric.ed.gov/fulltext/ED520220.pdf

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