According to NASSCOM’s report, over 3000 education technology (edtech) startups incorporated in the past five years in India. Between 2013 to 2016, funding in edtech increased by five times. As per estimation, over 20 active investors and approximately $600 million invested in the last five years. The report further states that funding sum is segregated into three parts--42 per cent infused in online courses, 23 per cent in technology and 18 per cent in tutoring.
According to KPMG report,in 2019, the Indian education sector was valued at approximately $101.1 billion and its online education market at $563 million. Online education market is expected to hit $1.96 billion by 2021.
Spark in the edtech sector is inevitable as several edtech startups have arisen in the short span of time. BJYU, which is India’s first edtech unicorn, is an exemplary to exhibit growth of edtech industry today. Trailing its steps, New Delhi-based edtech company, Eupheus Learning (Eupheus), has lately raised INR 30 crore in its Series A round, which is a blend of equity and venture debt.
Yuj Ventures, the early-stage investment platform financed by the family office of Sid Yog, Founding Partner of The Xander Group Inc, led the funding round of startup. More so, the Mumbai-based venture capital firm, Sixth Sense Ventures, which is an existing investor of Eupheus, also participated in the funding round.
The edtech startup will employ the new capital to expand in the country, improve its new product offerings, and increase its team. With this funding, the company will also invade in the Middle East and other foreign markets, and begin its operations outside its native country.
“The online education segment in India is primed for massive growth, as the next generation of children enter classrooms across the country. By leveraging the power of technology, we’ve been able to bridge the divide between in-school and at-home learning and offer a seamless, end-to-end learning experience. With this infusion of capital, we have the opportunity to expand our presence across India and into neighbouring nations, and showcase the benefits of our unique offering to an ever-larger audience,” Mr. Sarvesh Shrivastava, Managing Director of Eupheus Learning, said in the company’s official statement.
Making Education Easier and Simpler
Eupheus Learning, which is established by Ved Prakash Khatri, Sarvesh Shrivastava, and Amit Kapoor, aims to fill the gap between physical classrooms and learning at-home with the help of its curated, technology-enabled, subscription based learning solutions to alma maters. The startup renders solutions for all classes, starting from Pre-K to Class XII sections. It also gives education aid for all academic subjects, as well as packages, both the syllabi and homework tracking tools in amalgamated physical digital form.
“The Indian education space is being disrupted and Eupheus,with its superior content,enabled through careful curation and exclusive partnerships with the most innovative education companies globally, is providing best of in-class and home learning solutions to students. We are impressed by the founders’ experience, previous track record of developing cutting edge content at Britannica, and the manner in which they have scaled Eupheus in a profitable manner in the last two yearsin a competitive market. Yuj Ventures is pleased to support Sarvesh, Ved and Amit in their journey as entrepreneurs, and we will work closely with them to enable their next phase of rapid growth,” Madhav Soi of YujVentures Pte. Ltd. from Singapore, said
The edtech startup asserts to be the only firm in the edtech space to become successful within 21 months of operations. In financial year 2018-19, it posted revenues of INR 60 crores.
In the first half of financial year 2019-2020, New Delhi-based edtech recorded a three times surge in revenues in contrast to the same period in FY 2018-19. It also expanded its geographical reach to 70 Indian cities from the previous 52 Indian cities, enhanced its team to 175 professionals, and built new associations with four international companies in the education section, taking its aggregate international collaboration to 17.
Is Edtech Firms on the Rise ?
As the internet has blended with education, Gen Z students are bearing its fruits and technology-enabled companies are molding this new edtech niche. Recent developments in the edtech sector are STEM-based learning, adding caricature, and online tutors, among others.
Recently, Tech Shiksha, an edutech startup which was incubated by Neotec Hub by Ambuja Neotia secured INR 1.3 Crore from Mumbai Angels Network. 24 investors had participated in the startup’s funding round from Mumbai Angels Network, reported BusinessWorld.
The Indian unicorn, BJYU lately received $200 million from Tiger Global Management increasing its valuation to nearly $8 billion. Previously, the edtech firm was pegged at $5.5-5.7 billion following its former funding round in 2019. The funding round was led by Qatar Investment Authority and San Francisco-head quartered Owl Ventures.