VCCEdge Q3 Analysis - Education in Focus

“The pandemic has accelerated the shift towards digital learning which started 2 years back. We are seeing heightened adoption across pretty much every segment. While segments like K12 after school supplemental learning test-prep skilling have been growing strongly even before Covid segments which have been slower to adopt like schools high-stake test prep co-curricular activities have also seen forced adoption of tech based learning and a good part of this is unlikely to reverse. We have already seen almost 2 Bn of investments going into Edtech in India in this 2020 which is more than the aggregate of investments we have seen in this space in previous 5 years. As India is significantly lagging in education quality and infrastructure Edtech will help address many of these challenges on the back of increasing depth of capabilities and a wider pool of companies offering differentiated solutions and targeting different market segments. This will in-turn drive interest from investors who are looking to benefit from long-term value creation in this space.“