{"id":5484,"date":"2022-07-08T11:15:57","date_gmt":"2022-07-08T11:15:57","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=5484"},"modified":"2023-03-28T12:00:10","modified_gmt":"2023-03-28T12:00:10","slug":"indian-edtech-layoffs-and-shut-downs-this-year","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/indian-edtech-layoffs-and-shut-downs-this-year\/","title":{"rendered":"Know The Major Reasons Behind The Indian EdTech Layoffs And Shut Downs This Year"},"content":{"rendered":"
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It\u2019s pouring across the nation, but it feels like winter is here for the Indian EdTech start-ups, including a few unicorns. As you are aware, when the pandemic struck, nationwide shutdowns followed. It forced malls, schools, roads, restaurants, offices, etc., to close doors.<\/p>\n\n\n\n

Just like commerce and offices found options online like Zomato, Amazon, Microsoft Teams, Zoom etc., the budding EdTech industry saw an opportunity to capture a pie of the education industry in India.<\/p>\n\n\n\n

The pandemic boosted the Indian EdTech space by coining four unicorns, Vedantu, Eruditus, upGrad and Unacademy. Since everybody was stuck at home, including office goers, the industry witnessed 300%-400% customer growth over the last two years.<\/p>\n\n\n\n

Know the meaning<\/p>\n\n\n\n

Unicorn:<\/strong> It is a term a venture capitalist Aileen Lee popularized to distinguish a private company (business) with the valuation of $1Bn. In the Indian currency, a start-up must have a valuation of Rs. 79,10,10,00,000 (more than seventy-nine hundred crore) to achieve the Unicorn status.<\/p>\n\n\n\n

However, as they say, \u201call good things come to an end\u201d, and the frenzy around online learning and upskilling from home seems to have ended. This article will cover what is troubling the EdTech Industry in India, the reasons for the mass layoff, and the way forward.<\/p>\n\n\n\n

What\u2019s Wrong with Indian EdTech start-ups?<\/strong><\/h3>\n\n\n\n

Many believed that the EdTech space would have a hard time in India. Although the word EdTech has become commonplace now, you can trace the first reference to technology in education (as we remember) over a decade ago.<\/p>\n\n\n\n

EdTech:<\/strong> In simple words, it\u2019s an amalgamation of education and technology \u2013 teaching performed using the technological means like smartphones, tablets, interactive projection screens etc.<\/p>\n\n\n\n

You may remember those e-class pen drives advertised behind Sundaram notebooks. But unfortunately, the business model failed due to a lack of innovation.<\/p>\n\n\n\n

But EdTech start-ups that emerged recently, such as Vedantu, BYJU\u2019s, upGrad, and FrontRow, for instance, brought innovations never thought of. Yet they struggle to remain profitable while managing their marketing and tech expenses.<\/p>\n\n\n\n

Earlier, the reason behind EdTech start-ups\u2019 failure was the talent gap in India, low internet and smartphone penetration, lack of funding and belief, and inability to find the right business and revenue models, among a few others.<\/p>\n\n\n\n

But the reasons are slightly different today<\/strong>. <\/h3>\n\n\n\n