EdTechReview
As per reports, the Indian Edtech market is estimated to reach INR 35519.94B (USD433.17 billion) by 2030, enticing more than 100 million paying customers. Despite this potential, the sector is struggling with a decline in funding. As we examine the data, it becomes clear that investment in Q1 and Q2 of 2023 decreased significantly from the prior year. At the start of the year 2023, the Indian tech industry witnessed a steep decline in Q1 2023 compared to Q1 2022 with a total of INR 229.6 billion (USD2.8 billion) funding during Q1’23, which reflects a 75 per cent decline from the INR 975.8 billion (USD11.9 billion) raised in Q1 2022.
In our 2022 reports on funding for H1 and H2, the data revealed that the general funding plummeted 35 per cent to INR 1,985.94 billion (USD24.7 billion) in the January-November period of 2022, compared to INR 2,956.93 billion (USD37.2 billion) in the same period in 2021.
Our data also revealed that the Indian edtech sector had 62 funding deals across the country until June 2022, and the downfall escalated with only 40 deals in H2’22, with gross investment amounting to less than INR 57.40 billion (USD700 million). Notably, BYJU’s and upGrad significantly boosted the transaction value for H2’22 by raising more than INR 16,40 billion (USD200 million) apiece.
During the first half of 2023 (H1’23), financing for the Indian startup ecosystem significantly decreased and reached a four-year low. According to a PwC India analysis, 298 transactions raised INR 311.60 billion (USD3.8 billion), marking a significant drop of roughly 36 per cent from H2’22. Funding value decreased by 79 per cent compared to the previous year’s first half when startups raised INR 1,476 billion (USD18.3 billion) via 729 deals.
The “Startup Perspectives—H1 CY23” report, which takes a deeper look at the investment areas, reveals that SaaS, D2C, fintech, e-commerce B2B, and logistics were the top five industries garnering investments. Together, these industries got around 89 per cent of all the funding in H1 of 23.
The edtech sector in Q1 2023 was pushed into a tight corner with a total of 25 deals totalling INR16.40 billion (USD 200 million). The top three segments under the edtech umbrella were eLearning, Skilling and Education Financing. The total amount dumped in these three sectors amounts to INR15.53 billion (USD 189 million), with education financing bagging the maximum amount of funding, over half of the total amount dumped into the Indian edtech industry at 52 per cent of the entire share.
Contrary to Q1 2023, the edtech sector witnessed no deals in the education financing sector, and the most funded sector for Q2’23 is E-Learning at INR22840.58 million (USD278.6M), with over 80 per cent of total funds for the edtech industry in India. The Skilling segment witnessed the maximum number of deals (14), and the total number of deals in Q2’23 is 25 totalling INR27207.94 million (USD331.85M). Byju’s is the most funded company bagging INR20500 million (USD250M), and UpGrad is the most funded company at INR3000 million (USD36.6M) from the skilling segment.
The K12 sector had only one deal, i.e., Mom’s Belief, with INR56.17 million (USD0.685M).
The funding fell by 91 per cent to only INR 5.58B (USD68 million) in H1’23 from INR 64.78B (USD790 million) in H2’22. Growth-stage investment rounds comprised around 60 per cent of the sector’s transactions, with an average ticket size of INR 820M (USD10 million).
A glimpse at the edtech fundings India Q2 2023:
Total No. of Deals: 25
Total Amount of Funding: INR27207.94M (USD331.9 million)
Top Segment by the number of deals: Skilling with 14 deals
Top segment by the number of funds invested: E-Learning at INR22840.58M (USD278.55 million)
The region with the highest number of deals and the total sum: Delhi-NCR – 8 with a total sum of INR2547.89M (USD31.1 million)
Top 3 Deals by Value for Q2 2023:
- BYJU’S – INR20500M (USD250 million)
- UpGrad – INR3000M (USD36.6 million)
- Leverage Edu – INR2050M (USD25 million)
The EdTech industry continued to be the most negatively impacted sector as the transaction value continued to fall in Q2’23. To help you better visualise the Indian EdTech funding scene, we have compiled a list of Indian EdTechs funded in Q2 2023. The list comprises all details of the funding round in the Indian edtech sector for Q2 2023.
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Priyanka Gupta
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