The onset of the COVID-19 pandemic precipitated the move of the education sector into the online domain. As the whole world was getting used to restrictions and unpredictability, e-learning became the need of the hour. The period saw exponential growth of companies involved in education technology, which were to soon turn into EdTech giants. According to Statista, the present market valuation of the Indian EdTech industry is $2.8 billion. With the establishment of Massive Open Online Courses (MOOCs) and distant learning, companies like Byjus have become household names. EdTech companies have converted the field of education into a full-fledged industry. Since the onset of the pandemic, India has seen extensive funds flowing into this sector, which was previously considered as an industry without lucrative returns. Today we have five EdTech unicorn companies in the country – upGrad, Vedantu, Byjus, Unacademy and Emeritus. However, with the rise of these EdTech giants, the education sector has emphasised on the valuation of these companies, rather than the quality of education. Little is being talked about actual learning outcomes, consumer satisfaction, and the impact that these courses have on students. These companies are willing to pour money into advertising to lure customers and have high customer acquisition costs. The firms play on the psychology of Indian parents, who are lured through fancy advertisements, unique sales practices, discounts and even the option to pay through EMIs. The EdTech giants use tactics to convince parents that their children would remain average students if they do not have access to the premium courses or one-to-one online tutoring offered by them. They are not replacing the education offered by schools, but adding an economic burden on parents who are told that their child will be missing out if they don’t enroll. Such Edtech giants not only target school children but also students of colleges and universities, or those preparing for competitive examinations, promising them perfect scores through the packages they offer. In a country like India, where education for so long has been more inclined towards affordability and accessibility, how long will it be before the government cracks down on the disproportionate gains of these EdTech giants? Nevertheless, the EdTech sector is still flourishing, with more and more entrants each day wanting a share in an industry that is expected to grow leaps and bounds over the next decade. Whether these tech-based platforms would show sustained growth or there would be a burst in the bubble, only time will tell.
10 May 2022
Pranjal Nangare
