Funding into edtech sector plunges 48% in 2023 due to decreased demand

Experts said that the demand-supply mismatch between teachers and course availability in offline education is expected to fuel the growth in the sector in the coming years

The global education technology (edtech) market has been facing challenges attributed to decreasing demand for online education, ongoing funding constraints, rising interest rates aimed at controlling inflation and economic uncertainties.

The Indian edtech space too has been experiencing a declining trend in funding, similar to its global counterparts. Total funding into the Indian edtech space plunged 48 per cent to $971 million in 2023 year-to-date (January 1, 2023, to August 7, 2023) from $1.87 billion in the same period in 2022 and declined by 50 per cent as against the same period in 2021, according to a report by market