At first glance, things couldn't have been better for India's emerging electronics technology industry. It has received total investments of more than €2.2 billion. It has been estimated that the number of students exceeds 250 million up to the K12 levels. Free and paid subscriptions reportedly exceeded 90 million. Big got bigger through acquisitions, while others continued to dream big. Amid all the noise, however, there were also some big challenges facing these electronics technology companies during the year. And no bigger than the vast majority of the Indian population that has been kept out of the internet. There was also the case of an electronics technology company that faced severe criticism on social media for its attempts to teach coding to children ages 6 to 14.
When the continuity crisis turned into opportunity
None of these made headlines at the dawn of beautiful and bright 2020, even as the shadow of a new virus lurked in faraway Wuhan. Yet just 12 weeks later, the country was locked down and education faced its biggest continuity crisis. This is where the shining armored knights of the edtech world rushed to the aid of, and in doing so, raking in the moolah. The 250 million students had to connect. Teachers had to become digital specialists. And the students were going to be evaluated and promoted to their next virtual classroom. It all happened at breakneck speed, and in the process, electronic technology companies simply took over education. From private lessons to vocational courses, from hobbies to skills refresher courses, everything has gone digital. Even Google has provided us with indicators of the outbreak. Between April and December 2020, searches for edtech increased by more than 60%, while individual companies like Byju and Toppr saw a larger increase. Parents searched for solutions to keep children in school, which was otherwise part of a larger perceived challenge working from home.And then the flood came
Of course, the madness was not limited to an increase in demand. Also on the supply side, electronic technology companies have taken advantage of the momentum to seek and acquire funds, making it one of the top three funded sectors in India. They have raised more than €2.2 billion in capital, and KPMG estimates that more than 3.500 edtech startups are vying for a toe in the pie. However, this is not without reason, as the Federal Department of Human Resources has predicted that India's edtech spending will exceed €10 trillion by 2030. While early risers have used the lockdown to catch a few worms. When it comes to raising additional funds or acquiring synergistic startups, others have tried to broaden their reach, both at the B2C and B2B levels.Deeper and broader acceptance
Overall, the only change in the last 12 months has been a reduction in skepticism about virtual learning. Those offering classes to K-12 kids became B2B startups providing learning platforms, AR/VR support, and other tools to make tutorials engaging for self-help. learning in moderated classes. Another notable trend in the past 12 months relates to the growth reported by edtech startups outside of major cities in India. Byju claimed that over 60% were non-Metro users, while an Omidyar network research report estimated the number for the area to be over 70%, with users mainly from cities. Tier 2. These include Kochi, Bhopal, Chandigarh, Patna, and Ahmedabad, among others. This increase in demand from small towns also posed some problems. Educators believe that the lack of strong internet connectivity in cities and towns could lead to a widening digital divide. Many have called on the federal and state governments to make technology and equipment available to rural India to help children bridge the gap. Edtech companies believe that India's shift to 5G would be the next growth episode for them. Of course, what is not yet clear is when the country would switch to next-generation mobile connectivity technology, given that India has yet to auction off 5G Spectrum, although smartphones are capable of doing so: a dozen.A little consolidation too
Amidst all this hubbub, the edtech business has also established itself at the highest level with mergers and acquisitions leading the way. While Byju's and Unacademy got their hands on young startups, others sought small but useful innovations, like Spayee, which sought to democratize edtech itself. While Unacademy has acquired five companies, including Kreatyx, PrepLadder, Mastree, Coursavy and CodeChef, Byju's has acquired WhiteHat Jr. and LabInApp, the former for $300 million and the latter for an undisclosed amount. Others, like Vedantu, have taken a stake in the Instasolv doubt-solving app with an eye toward Tier 3 and Tier 4 cities.A peak in the future
In general, in the year digitization boosted education, from school to universityand later to the formation of competences and in the company. Suddenly, coding became the strategy of choice for parents, as the federal government's national education policy defined it as one of the skills for the future. As the curtains fall on 2020, the questions that remain on our minds include: (a) When universities open, how will they approach digital learning? (b) How will digital learning reach the lower levels in the absence of the Internet? (c) What would be the blended learning models that would govern this space? Do you want to know the latest technological events? Follow TechRadar India on Twitter, Facebook and Instagram!