It is the best of times in India's edtech sector. The pandemic supercharged things, with investor money flooding in and carrying edtechs to heights that were unimaginable just years prior. You have the likes of Byju's, which has emerged as the most valuable edtech company anywhere in the world. Byju's commands new investments, seemingly at will. Acquisitions, too.
Other leaders in the space - such as Unacademy, UpGrad, and Vedantu—also found favour with investors. The former entered unicorn territory in 2020. The latter two followed suit around a year later. If you aren't one of the anointed edtechs, though, it is the worst of times.
A rising tide raises all boats, and that's what it seemed like the pandemic would do. Two years into the pandemic, though, the VC exuberance around edtech has faded. In the place of the initial FOMO is fatigue.
Outside of the already anointed, VCs are far more circumspect about which companies they back in India's edtech wars. Full-stack models, which helped edtech giants like Unacademy and Byju's win the hearts and wallets of investors, no longer guarantee VC love. And while VCs are on the lookout for newer, more sustainable models, they're also loath to leave the comfort zones they've grown used to. For up-and-coming edtechs, it's almost a case of damned if you do, damned if you don't.
In our today's articles - which narrates to a plethora of edtech VCs and founders to understand the current investor sentiment around the sector and how it is likely to shape India's next generation of edtechs. www.multimediastudio.net