Are We Seeing A Boom In Edtech Sector?
In a headline I saw Byju raises $200mn in fresh Funding increasing its valuation to $12 Bn.
Edtech segment has seen a funding boom in the wake of coronavirus pandemic, as more and more people are realising the potential of online education. Even unacademy also became a unicorn in September after it raised $150 million in a found led by Japanese conglomerate SoftBank, making the company at $1.45 billion.
But do you think this boom gonna last? Because behind every boom there is a bust waiting to happen. IMO, these over-hyped valuation doesn’t stand up with its saturated market because most of the population in India is still below poverty line and many of them lack digital literacy. So, it would be tough for those ed tech startups to capitalise and be profitable consistently. Because competition is getting tougher now so much edtech platforms came into picture to disrupt the current standings and that is happening very quickly in this digital age. One thing for sure that in these edtech segment, supply will overpower demand due to easy availability of apps now-a-days and so much option to look out for. The market gonna soon saturate if they fail to reach every hook & corners of India spreading education digitally.
Till now, it’s too early to say. With increase in infrastructure developments in tier-2 & tier-3 cities and then further in villages, it will take time and when time will come I hope one of the Indian Edtech companies actually stand out imparting education to each and every corner.
Till then, see you with next interesting topic and with my direct to point opinions with no economical jargons and in most simplified way. Keep supporting- http://dillydare.wordpress.com