Edtech game plan

Edtech as a business need to have a customer connect, delivery, and customer satisfaction. “And all of it Amazon can provide. Amazon getting into the play versus Byju’s are two different animals as far as investors and funding are concerned,” argues Bisen, explaining that Amazon is not depended on investors. For the e-commerce giant there is no stipulated time-frame by when the business has to show profit. It has a long-term horizon to target a higher share of the consumer wallet. Much like it is already doing with the over-the-top (OTT) platform space with its offering, Amazon Prime, or in the grocery business with Amazon Pantry.

“I am cautiously optimistic about what Amazon is doing in edtech,” adds Bisen.

In the last few years edtech companies have ramped up their interactive online tutoring content targeting school students and candidates preparing for competitive examinations and government jobs across metros and tier 2 cities.

“Our primary focus has been on content quality, deep learning analytics and student experience,” said Amol Gurwara, director, education, Amazon India, in a statement.

According to a recent report jointly penned by the Indian Private Equity and Venture Capital Association and PGA Labs, Indian edtech startups received a total investment of $ 2.22 billion in 2020 as against $553 million in 2019.

In FY20, the education market in India is pegged at $117 billion with about 360 million learners, the report noted, adding that Indians spent $42 billion on supplementary education which primarily comprises private coaching and test preparation in the last fiscal.

The report further pointed out that the education market in India is expected to grow 2x to $225 billion by FY25. While the Coronavirus-induced lockdown last year increased the demand for edtech products exponentially in the country, many believe the demand to be “artificial.”

“It should not exist ideally. It just eats into the savings and personal consumption priorities of households. It is an additional expense in my mind. Therefore, I have been a little cynical about this industry overall,” says Bisen.

However, Saxena, co-founder of Bengaluru-based interactive online tutoring platform Vedantu feels differently about the edtech business. “Edtech space is set to keep rocketing ahead in 2021 and beyond. Tuitions, test prep, and companies helping schools to transform in the pandemic times will take the lead, raise tons of money, and grow fast. This will also lead to a more fundamental disruption in the way learning and education are seen through a conventional mindset,” says Saxena.

With funding available across various stages of growth, only time will tell if edtech companies can sustain this momentum. While the endgame is still not clear, there’s surely a lot to learn.

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