Consult Club, IIM Ahmedabad October 2017

Sector Report: Education/Ed-tech

Introduction
India has a multi-layered formal education system with ~ 260 million students enrolled in more than 1.5 million schools
and ~ 39,000 colleges catering to 27.5 million under graduate and four million post graduate students. Formal education
includes primary and secondary schools, graduation, post- graduation and diploma courses. Informal education includes
pre-primary, coaching classes etc. aiding as a supplement to formal education.

Education System: Regulatory framework

K12 (school):
Schools are governed by state and
central bodies, viz. CBSE, ICSE, state
and international boards.

Higher education:

MHRD UGC
State councils AICTE, MCI etc.

National board for accreditation

National assessment and accreditation
council
Source: IBEF report on Indian Education & Taining, July 2017

Key Drivers: Porters 5 Forces Analysis

Revenue Drivers:
Immense growth potential, due
to Large young population in in
5-24 years age range, Low
literacy (75%). Thus, Education
market to grow from $97bn in
2016 to $144bn in 2020(E)
New Innovative offerings
especially in coaching and
tutoring sector offer revenue
growth

Cost Drivers:
Policy support & ambitious
targets set by govt. require Source: IBEF report on Indian
investment of $200bn till 2020 Education & Taining, July 2017

Technology-based solutions
driving down the cost of
education
Value Chain:
Inbound Logistics Operations Outbound Logistics Marketing & Sales Service

Academic Recruitment Teaching. Mentoring Graduation, Research, Brand building Career counseling service
Student admissions Research Placements Rankings/accreditations Alumni & recruiter relations

Key growth trends driving Online Education in India

Online education provides quality education at low-cost
Growing job seeking population drives the demand for industry relevant training
Government initiatives to drive adoption of online education
Growing internet & smartphone penetration

Key Categories:

Revenue Models:
Freemium/upgrades
Students are provided with free samples
initially and charged for the complete
course
Course Subscription based on
one-time transaction, where students
pay per course subscribed
Pay-per-session/module Students
are charged basis duration of usage/
number of modules accessed
Content Sharing
Advertising commission

Funding:
Edutech sector received $179mn funding in 2016
Notable deals include:
Funding amount ($mn)

# of rounds

Byjus raised $50 million Chan Zuckerberg Initiative,

Times Internet Ltd, Sequoia Capital and a few others. It has Source: Tracxn Edtech Report 2017

raised a total of $244 million and is the currently the

largest player in the edtech sector

Future of online Education: Recent News:

Gamification concepts to enhance user engagement UGC drafts UGC (Online Education)
Convergence into a hybrid (Online+Offline) approach regulations, 2017 for provision of online
Online education to evolve the concept of continuos learning degrees. This is expected to give a boost to the
Technological innovations in supply and demand ecosystem online education segment and increase the
consumer trust in the online learning platforms