Due to COVID-19, Education Industry has seen many new startups and impact | MBA in HR Bangalore

Posted by Dr. Shahid Raza On 01/07/2022 12:07:55

Education Industry has seen tremendous transformation in its existential structures due to COVID-19 and there has been a sudden surge in Edtech start-ups around the world with India coming of age and being known to be the tech capital of the world. India now houses One Decacorn edtech (BYJU’s) which is valued at more than $10 billion US dollars and 4 Edtech Unicorns which are Vedantu, Unacademy, Eruditus, and Upgrade which are valued at $1 billion US dollars. It has been observed since 2020 that the growth of the tech industry is the most funded start-up category only behind two other industries e-commerce and fintech, the sudden surge in funding can be attributed to the pandemic boom. India has seen the smartphone revolution with around 750 million smartphone subscribers which accounts for about 50% of the population and reports suggest that the smartphone users would grow to 1 billion by 2026 which will definitely enhance the usage of digital initiatives as the country has sufficient wireless connectivity. India has the second-largest market ($3.2bn approx. by 2022) for e-learning and ed-tech after the United States. Classroom learning and pedagogy around the world and in India are changing as a result of the pervasive use of digital tools and technologies by millennial students since they are born in the era of mobile devices and the internet. A huge number of start-ups in the education industry gained funding and saw a sudden leap in the use of technology for personalized learning with the United Nations Educational, Scientific and Cultural Organization (UN) also strongly recommend the use of technology for learning which will bring about democratization of education and access to quality education for all. UNESCO brought on Education for Sustainable Development (ESD) 2019 – The UN General assembly model for rethinking learning to achieve the Sustainable Development Goals so as to rebuild education to create change-makers, ready for global challenges and unforeseen events such as the pandemic COVID-19. During the COVID-19 phase when the use of technology for learning was seen to rise quite rampantly, it was also seen that the digital divide has emerged which affects developed and underdeveloped nations due to a lack of digital literacy and digital skills since the learners were not prepared to handle their learning and teachers were not able to achieve minimum learning outcomes in such adverse and unfavorable environment. MBA in HR Bangalore

The Edtech start-ups promise flexible and cost-effective experiential learning in this realm of education. The Edtech businesses have been around last two decades and have seen a dramatic boom since the COVID-19 pandemic, Indian digital learning businesses have also tapped into students' potential by conducting programs & courses for up-skilling, re-skilling, and training while they are still enrolled in colleges and universities. According to the financing trends, international investors' most sought-after destination for direct investments in India since FDI in India is allowed at 100% in the education sector, therefore it is easier to choose to support edtech in India. Though there are many government and regulatory organizations, the Indian federal and state governments have been promoting digital learning in the education sector, fostering the expansion of Edtech companies. Studies in the field of e-learning, Online learning, Blended learning, etc should be facilitated for students and teachers to realize the impact on the economic, social and cultural aspects. Research on the digital realm of education will help assess the impact on how the educational environment has changed as a result of the unanticipated growth of edtech start-ups and should investigate the sustainability and potential for expansion of the Indian Edtech start-ups around the world. However, it is seen with the situation in the education sector slowly getting back to normalcy in 2022 this seems to have affected many Edtech start-ups with decelerating online student enrolments, depleting funds, and new capital investments, and there seems to be a new crisis for the tech start-ups which is challenging their survival in the education industry. With the Schools and Colleges reopening since the pandemic has receded the original model of online learning seems to have a setback with employee lay-offs due to lack of funding. The edtech has faced growth issues with the original model and the companies now are looking to scale up using the hybrid model which the Universities and colleges are offering posing a further threat to their cash flow and growth.  MBA course in Bangalore

The major challenge for edtech companies now is to reduce the cost of customer acquisition, and customer retention post-pandemic, and improve learning outcomes by improvising their business models to attract customers by digging deep into their cash reserves to stay alive in the market. Managing screen time has been another real challenge for the companies as the students spend most of their productive time during the day at their respective Institutions and Universities, now to bring their attention back to study hours after a long day will have a greater challenge as classroom activities, peer to peer learning and other co-curricular engagements and activities will take their interests and drive towards accomplishing things and planning for their academics. So, the greater challenge for the edtech companies is to innovate on their business model in ways that can capture students’ interest and bring back revenue to the company else failure to capture students' interest will make many faces a slow decline into oblivion.

 

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