As per reports, the global Edtech market is estimated to reach USD433.17 billion (INR 35519.94 billion ) by 2030. The Indian edtech market is estimated to be USD 29 billion by 2030, enticing more than 100 million paying customers. Despite this potential, the sector is struggling with a decline in funding. As we examine the data, it becomes clear that investment in Q1 and Q2 of 2023 decreased significantly from the prior year. At the start of the year 2023, the Indian tech industry witnessed a steep decline in Q1 2023 compared to Q1 2022 with a total of USD 2.8 billion (INR 229.6 billion) funding during Q1’23, which reflects a 75 per cent decline from the USD 11.9 billion (INR 975.8 billion)raised in Q1 2022.
In our 2022 reports on funding for H1 and H2, the data revealed that the general funding plummeted 35 per cent to USD 24.7 billion (INR 1,985.94 billion) in the January-November period of 2022, compared to USD 37.2 billion (INR 2,956.93 billion) in the same period in 2021.
Our data also revealed that the Indian edtech sector had 62 funding deals across the country until June 2022, and the downfall escalated with only 40 deals in H2’22, with gross investment amounting to less than USD 700 million (INR 57.40 billion). Notably, BYJU’s and upGrad significantly boosted the transaction value for H2’22 by raising more than USD 200 million (INR 16,40 billion) apiece.
During the first half of 2023 (H1’23), financing for the Indian startup ecosystem significantly decreased and reached a four-year low. According to a PwC India analysis, 298 transactions raised USD 3.8 billion (INR 311.60 billion), marking a significant drop of roughly 36 per cent from H2’22. Funding value decreased by 79 per cent compared to the previous year’s first half when startups raised USD 18.3 billion (INR 1,476 billion) via 729 deals.
The “Startup Perspectives—H1 CY23” report, which takes a deeper look at the investment areas, reveals that SaaS, D2C, fintech, e-commerce B2B, and logistics were the top five industries garnering investments. Together, these industries got around 89 per cent of all the funding in H1 of 23.
The edtech sector in Q1 2023 was pushed into a tight corner with a total of 25 deals totalling USD 200 million (INR 16.40 billion). The top three segments under the edtech umbrella were eLearning, Skilling and Education Financing. The total amount dumped in these three sectors amounts to USD 189 million (INR 15.53 billion), with education financing bagging the maximum amount of funding, over half of the total amount dumped into the Indian edtech industry at 52 per cent of the entire share.
Contrary to Q1 2023, the edtech sector witnessed no deals in the education financing sector, and the most funded sector for Q2’23 is E-Learning at USD 278.6M (INR 22840.58 million), with over 80 per cent of total funds for the edtech industry in India. The Skilling segment witnessed the maximum number of deals (14), and the total number of deals in Q2’23 is 25 totalling USD 331.85M (INR 27207.94 million). Byju’s is the most funded company bagging USD 250M (INR 20500 million), and UpGrad is the most funded company at USD 36.6M (INR 3000 million) from the skilling segment.
The K12 sector had only one deal, i.e., Mom’s Belief, with USD0.685M (INR 56.17 million).
The funding fell by 91 per cent to only USD 68 million (INR 5.58 billion) in H1’23 from USD 790 million (INR 64.78 billion) in H2’22. Growth-stage investment rounds comprised around 60 per cent of the sector’s transactions, with an average ticket size of USD 10 million (INR 820 Million).
A glimpse at the edtech fundings India Q2 2023:
Total No. of Deals: 25
Total Amount of Funding: USD 331.9 million (INR 27207.94 million)
Top Segment by the number of deals: Skilling with 14 deals
Top segment by the number of funds invested: E-Learning at USD 278.55 million (INR 22840.58 million)
The region with the highest number of deals and the total sum: Delhi-NCR – 8 with a total sum of USD 31.1 million (INR 2547.89 million)
Top 3 Deals by Value for Q2 2023:
- BYJU’S – USD 250 million (INR 20500 million)
- UpGrad – USD 36.6 million (INR 3000 million)
- Leverage Edu – USD 25 million (INR 2050 million)
The EdTech industry continued to be the most negatively impacted sector as the transaction value continued to fall in Q2’23. To help you better visualise the Indian EdTech funding scene, we have compiled a list of Indian EdTechs funded in Q2 2023. The list comprises all details of the funding round in the Indian edtech sector for Q2 2023.