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HARSH SAINI
ADITYA SRIVASTAVA
PRANAY JAIN
● With 28.1 % of India’s population in the age group of 0-14 years, educational industry in India provides great growth
opportunity
● The higher education segment caters to the undergraduate and postgraduate students while the K-12 segment caters to
students in grades kindergarten to 12th.
● K-12 With the current enrolment of 260 million, the K-12 segment offers the largest and most attractive segment for digital
learning providers in India
● Around 35.7 million students were enrolled in higher education ,The segment targets ~13% of the Indian population in the
age group of 18-23 years.The higher education segment held the largest share of the market in 2017, accounting for more
than 77% share.
● India’s online education market is set to grow to USD 1.96 billion and around 9.6 million users by 2021 from USD 247
million and around 1.6 million users in 2016
● Online education may prove to be a good alternative and is expected to grow at 52 per cent CAGR between 2016-2021.
● Courses offered currently act as a supplement to classroom education and as substitute to tution classroom market
● Growth will be driven by large offline student base and increased internet penetration in tier 2 cities and beyond
● Around 467 thousands paid users. Market size is expected to increase to 773 USD million in 2021 from 73 USD million in
2016 at CAGR of 60%
● Modular content with smaller average transaction value could help in increasing consumer adoption
● Key trends -Tutor Marketplace (strong traction from tier 2 and tier 3 cities) ,
- Freemium model driving traction ,
- Video content and Adaptive learning
● Increased demand in domestic market and export opportunities in select Asian markets is expected to drive the future for
online primary and secondary supplemental education
● Value added services such as career counselling and enhanced progress tracking could further increase adoption levels
● KEY TRENDS- mobile led learning to dominate in the ● FUTURE OUTLOOK- employee motivated user traction
future, demand driven from tier2/3 regions, growing and B2B offerings to gain pace in future
demand for regional development content
● Current education system caters to only 23% of the ● Highly fragmented with high potential for newer niche
eligible population, online higher education is at an player in the market,Advertising could continue to be
early stage of development a key revenue driver for these platforms
● Around 55 thousands paid users. Market size is ● Around 353 thousands paid users. Market size is
expected to increase to 184 USD million in 2021 from expected to increase to 29 USD million in 2021 from
33 USD million in 2016 at CAGR of 41% 5 USD million in 2016 at CAGR of 42%
● Post graduation courses have higher adoption as ● Much higher adoption in comparison to other hobby
compared to graduation and diploma courses related courses
● KEY TRENDS-Alliances, Growth of mobile as a device ● KEY TRENDS-Evaluation modules see adoption
preference, short term courses to gain traction (language learner are increasingly opting for
evaluation module) , Mobile drive adoption,
● FUTURE OUTLOOK-enhanced classroom experience Conversational skills preferred
and evolving regulatory framework will increase
perceived value among the target ● Sector may continue to see growth in user base
however propensity to pay may remain low
● With the integration of new age technologies like AI, VR, ML, the learning experience will be more interactive and personalize
● Gamification will gain application in the form of simulation of concepts,incentive based learning,level advancement badges
● This will drive user engagement and increase acquisition
● Data storage on cloud to enable any time any device access
● Virtual labs can enable student to perform experiment.This would enable platforms to widen their offerings to include courses
involving a high practical impact
● Bite-sized or micro-learning modules which cater specifically to the content consumption habits of young digital consumers are
increasingly gaining traction in the EdTech space.
● Also, mobile is the preferred channel among young students and professionals to consume online learning courses. . This is
because it allows them the flexibility to access content anytime and anywhere through easy-to-use app interfaces.
Practical component of course content to be enhanced through live projects offering real world application of educational concepts
Copyright ©2019 E-Cell IIT Roorkee
OPPORTUNITIES
● Online higher education will witness a considerable growth and continue to aid in distance learning program. Expected to
grow based on changes in the regulatory framework
● K-12 and higher ed are ripe for growth, with the promise that edtech can improve efficiency and lower cost — more
automation and less human involvement — while also improving and making more measurable outcome
● Skill development and enhancement requirements for the working population will lead to growth in the reskilling and
online certification markets. Large customer base and industry recognition , future growth will be driven by reskilling
needs of the new entrants in the working population
● Professionals and urban entrepreneurs with higher disposable income and awareness about the online medium could be
directly targeted by the online platforms . These learners will look at the reskilling or upskilling in order to succeed in the
organised job market. Monetization of product offering of this target group could be higher than other potential learners
● The concept of continuous learning has already been partially employed through multiple business models,focussing on
different stages of education of an individual. However the opportunity remains in exploring new models of delivery which
are relevant to consumer segment and online education channel
● Lower infrastructure cost and larger student base,can reach out to the masses without setting up physical infrastructure
● INR 15000-20000 average transaction value range for online graduation courses in India
● Online skill enhancement courses are around 53% cheaper than offline alternatives
● reas where availability of quality offline education is low witness higher adoption of non traditional education methods
● Open courses and distance learning enrolments in India to rise to around 10 million by 2021 (CAGR-10%)
● Stark difference in educational qualification b/w urban and rural India population
● Government initiatives such as SWAYAM, E-basta, RMSA (Rashtriya Madhyamik Shiksha Abhiyan), skill India and Digital India will
enable the infrastructure needed by students to study online
● Disposable income of the country is expected to grow by 55% by 2020, India will keep its current rank as the world’s 2nd largest
middle class till 2023
Copyright ©2019 E-Cell IIT Roorkee
GROWTH IN INTERNET AND SMARTPHONE PENETRATION
● Around 31%internet penetration with about 409 million internet users, 290 million smartphone users
● Increasing penetration in semi-urban and rural areas provide high potential for growth
● Nearly 735 million projected users by 2021, will enable reach and increase traffic for the online education players
● 46% of population bw 15-40 age group ,young population with higher aspirants but lower income is good target market for
online education
● Acceptability of online channel is also higher in the younger demographic
GROWING JOB SEEKING POPULATION DRIVES THE DEMAND FOR INDUSTRY RELEVANT TRAINING
● One of the critical drivers for rising interest in EdTech can be the adoption rate of new
technologies by the millennial community. Millennials entering the job market bring a new set
of expectations on how to learn and collaborate. Hence, investment is flowing into the
EdTech market at an unprecedented level.
● Since January 2017, edtech startups raised $94.21 million through 34 deals as against $107
million across 46 deals in 2016. A report by KPMG and Google pegs the edtech market to
touch $1.96 billion by 2021.
CHALLENGES
● One of the reasons for edtech startups being unable to go mainstream and attract
investments is lack of awareness about the latest education technology in the country.
● Besides, jobs still demand conventional educational degrees recognised by designated
educational boards.
● Most edtech startups are not certified by these boards. This makes it difficult for any
company to create a business model that is both innovative and has the “Uber of Edtech”
vibe so that entrepreneurs to win investors’ trust.
● BYJU’S gained the status of a unicorn recently when a funding infusion — including one from China’s Tencent and
BCCL — valued the startup at $1 Bn (INR 6,505 Cr), according to its company filings with the ministry of corporate
affairs
● Also, Bengaluru-based edtech startup Unacademy raised $21 Mn in Series C Funding from Sequoia India, SAIF
Partners, and Nexus Venture Partners
● Education technology platform Byju’s has raised $540 million funding round led by South Africa's Naspers
Ventures as it looks to fuel its global expansion plan, according to a company statement
● Total Funding : USD 775M , Investors: CPP Investment Board, Naspers, General Atlantic
● Byju’s provides tablet classes with multi-test and assessment solution, personal feedback and in-depth analysis
● The online courses are targeted at K-12 students. Won various awards like CRISIL Emerging India Award and
Deloitte Technology Fast 50 Award. Available for Android and iOS platform.
● Total Funding : USD 39M ,Investors: Sequoia Capital, SAIF Partners, Nexus Venture Partners
● Unacademy Enables educators to create video courses of not more than 10 minutes on its platform.
● Courses are offered for test preparation, academic subjects, language learning, and more
● Total Funding : USD 59M ,Investors: Kaizen Private Equity, SAIF Partners, Helion Venture Partners
● Toppr is an after-school learning application for K-5 to K-12 students
● offers structured courses with interactive video lectures, practice question sets, doubt clearing and all India test series
● Total Funding : USD 26M , Investors: Omidyar Network, Accel Partners, Tomorrow Advancing Life
● Vedantu offers live tutoring with two-way interaction via whiteboard, audio and video, which works on a low
bandwidth
● Monthly and flexible hour based pricing plans
● High customization in content delivery, assessment and result analysis will be instrumental in driving competitive
differentiation among players.
● Going forward, availability of comprehensive content at affordable prices to students will be important for increased
adoption.
● Engaging customer experience through potential use of gamification might be required to increase customer retention.
● Availability of variety of content format and courses at affordable prices and flexibility of start/end time influences usage
decision
● Moreover provision of value or services such as career counselling and soft skills development will be important to
differentiate the brands.
● A multidrive offline and online touch points for certain categories will enable greater awareness of players among users