The Indian edtech sector was once hailed as a game-changer in education, but it is now facing tough times. A data from Tracxn reveals that 2,148 edtech startups have shut down operations in the period of past five years.
The pandemic was a turning point for edtech as physical classrooms were closed and demand for online education soared. This led to investors pouring in money in billions. The sector raised a record $4.1 billion and startups in great number started mushrooming across cities like Bengaluru, Delhi and Mumbai.
Many startups failed to innovate the new demand and were left behind after the pandemic was over.
Stoa School and Bluelearn were initially promising platforms but couldn’t sustain operations in 2024. Industry giants like Byju’s faced multiple problems like layoffs and legal issues. Unacademy and upGrad also had to scale down and restructure.
EdForce CEO Ravi Kaklasaria said that many startups chased growth without innovating, but the race to grow fast led to burnout, unsustainable models and shutdowns.
However, everything was not doom and gloom. Large companies equipped with strong financial backing are to dominate as they are focusing on innovation and are offering value-driven solutions. Angel investor Lloyd Mathias predicts that only those who add real-world value will thrive.
The fall of so many startups is a wake-up call. The future of edtech lies in innovation, but only to those who can adapt to changing needs and simultaneously deliver meaningful solutions are to emerge stronger.
We are into 2025 and the question is not whether edtech can survive, but how it can rebuild smarter as well as more resilient for the long term.
