VC investments in B2B ed-tech start-ups up 77% to $30 million

A report by RedSeer and Omidyar says pandemic-driven online education offerings across Classes 1 to 12 are projected to rise 6.3x by 2022 to create a $1.7 billion market

Venture Capital Investments in B2B Ed-Tech Start-ups in India have grown by 77 per cent to $30 million in 2020 from $17 million a year ago. 

The lockdown had spurred growth in the B2B space in which schools, colleges, and tuition centres have been aggressively adopting tech-based solutions

A report by RedSeer and Omidyar Network India says the coronavirus pandemic-driven online education offerings across Classes 1 to 12 are projected to increase 6.3 times by 2022, to create a $1.7 billion market. The post-K12 market is set to grow 3.7 times to touch $1.8 billion. This will create meaningful opportunities for incumbent players and space for multiple new startups, which in turn attract investors.

Vaibhav Tamrakar, Vice President, PGA Labs, market intelligence business of Praxis Global Alliance, said, “The nationwide lockdown in 2020 pushed educators to embrace digital tools and technology for conducting online classes. This has led to a surge in adoption of innovative approaches based on Digital Classroom tools, Learning Management Systems, Tutor Management solutions, etc. across schools, colleges/universities, coaching institutions/tutors, and others.”

“The New Education Policy 2020 further lays importance on experiential learning and innovation in content delivery. Innovations across business models and a corresponding policy boost from the Government make B2B EdTech a space to look out for,” he added.