Q3 2023 Indian EdTech Funding Review: Reports reveal that approx. 56 per cent of Indian startup investors predicted that the total investment in Indian startups in 2023 will not surpass the levels accomplished in the previous year. Indian startups raised only USD 7 Billion between Q1 and Q3 of 2023 compared to USD 22 Billion during the same period in 2022. The difference is much higher if compared to 2021. Our data implies the same as each quarter this year has witnessed a decline in funding against each quarter in 2022. The trend persists, and the funding winter seems to slope down further and will continue in the next quarter.
Indian startups raised USD 1.7 billion in Q3 2023, marking a 43% reduction from the same period last year. The decline is attributed to a myriad of factors, including a decrease in sizable investment deals, decreasing demand for online education, global economic challenges, rising interest rates, and corporate governance issues.
The edtech sector raised USD 187.21 Million with a total of 31 deals in the third quarter of 2023. The top three segments that raised the maximum amount are Skilling & Training, with USD 74.9 Million; Education financing, with USD 66.8 Million; and E-Learning, with USD 29.51 Million. Skilling & training continue to be the top-funded segment in edtech consecutively for the third quarter.
The segment had raised 36 per cent of the total funds in Q1’23 and 16 per cent in Q2’23. eLearning has bagged 44 per cent of the total funding in Q1’23 and 83 per cent of the total funds in Q2’23. For this quarter, eLearning has bagged 15.76 per cent funds of the total funding and, skilling and training raised 37.87 per cent of the total amount dumped in the sector and Education financing bagged a share of 35.68 per cent of the total amount invested.
Regionally, Delhi NCR had a share of USD 78.67 Million across 9 deals, followed by Bengaluru and Mumbai at USD 7.15 Million and USD 58.73 Million, respectively. Auxilo, the top-funded company in India, is also one of the most funded companies on the global edtech index. It is based in Mumbai and serves the financing gaps in the Indian education sector. The third quarter also saw funding in new edtech sectors like School Solutions, Study Abroad, and Ancillary Education.
A glimpse at the edtech fundings India Q3 2023:
Total No. of Deals: 31
Total Amount of Funding: USD 187.21 Million
Top Segment by the number of deals: Skilling and Training with 13 deals
Top segment by the number of funds invested: Skilling and Training at USD 70.9 Million
The region with the highest number of deals and the total sum: Delhi NCR, with 9 deals at USD 78.67 Million
Top 3 Deals by Value for Q3 2023:
- Auxilo at USD 57.4 Million
- Disprz at USD 30 Million
- Wheebox at USD 30 Million
To help you better visualise the Indian EdTech funding scene, we have compiled a list of Indian EdTechs funded in Q3 2023. The list comprises all details of the funding round in the Indian edtech sector for Q3 2023.
Also, read the Indian EdTech Funding Review for Q1 and Q2 2023.
