Funding within the sector appears to have bottomed out in 2023 as traders put in $164 million within the first half of 2024, up by 96 per cent from $81.9 million invested within the second half of 2023, the report confirmed.
In 2024 year-to-date (YTD), the edtech sector raised $215 million. The sector recorded funding price $321 million in 2023. Within the first half of 2024, the sector has witnessed $164 million, a 96 per cent enhance in contrast with the $81.9 million raised in H2 2023.
Nonetheless, it’s a far means from the trade’s 2021 peak of $4.1 billion raised. The trade’s ongoing downturn was mirrored within the 2023 determine, which marks an 87 per cent lower from the $2.4 billion raised in 2022.
Demand for on-line programs
Regardless of having over 11,000 energetic corporations, the sector is struggling as a consequence of macroeconomic situations and a shift again to conventional studying as faculties reopen. Nonetheless, there may be nonetheless a robust demand for modern on-line programs {and professional} upskilling programmes , notably in areas the place offline training falls quick, providing some hope for continued development.
Within the first half of 2024, the edtech sector noticed funding price $164 million. The third quarter of 2021 was the highest-funded quarter on this house, with an general funding of $2.48 billion.
Since Q2 2023, the primary quarter of 2024 has been the highest-funded quarter over the previous three quarters, with greater than 65 per cent of the full funds raised in 2024.
“The Indian edTech sector has proven outstanding adaptability within the face of fixing market situations. Whereas the funding ranges are nonetheless under the highs of 2021, the sector’s development in 2024 up to now signifies a renewed curiosity from traders, particularly as corporations transition again to conventional studying strategies whereas incorporating digital improvements,” mentioned Neha Singh, Co-Founding father of Tracxn.
Inside edtech, funding within the check preparation phase dropped to $8.5 million from $175 million in 2021 whereas the continued studying phase additionally noticed a drop in funding from $517 million in 2022 to $20 million within the present 12 months up to now.
Blume Ventures, Wellfound and LetsVenture are the highest general traders. For the seed-stage, IPV, We Founder Circle and EvolveX have been most energetic prior to now two years. Blume Ventures, Alteria Capital and the Michael and Susan Dell Basis lead in early-stage, whereas Trifecta Capital, Alteria Capital and Stride Ventures excel in late-stage investments.
Bengaluru dominates the Indian edtech sector, accounting for over 64 per cent of whole funds raised, adopted by Delhi and Mumbai.
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