India may soon become the biggest Education Technology (EdTech) market in the world after Beijing imposed its new tutoring and financial regulations.
According to a notice issued by the State Council in China, EdTechs and after-school tutoring companies in China are barred from selling shares to the public, accepting foreign capital, acquiring online education firms, or even turning a profit. These regulations could effectively wipe out the billions of dollars invested in EdTech start-ups by some of the world’s largest private equity and venture funds.
How will Beijing’s Decision Impact the Indian EdTech Market?
China’s loss could be India’s gain. Many of the VC and PE fund houses will look beyond China to invest their money. The booming Indian EdTech ecosystem will definitely be their best bet.
India’s EdTech companies like BYJU’S, Toppr, and others will be expected to tap into the sudden void created in the EdTech market globally. Many smaller EdTech companies may receive critical growth capital. This could help turn India into a global hub for education.
EdTech major BYJU’S, which is valued at $16.5 billion, has already established its foothold in several countries. Through BYJU’S Future School, BYJU’S has expanded into the UK, US, and Australia. It is also present in non-English speaking countries such as Brazil, Mexico, and Indonesia. The best thing about BYJU’S Future Schools is that it is backed by a strong women-only teaching team. A team that will help BYJU’s scale new heights and makes India an EdTech powerhouse.
How will Beijing’s Decision Impact Indian Education?
India is a vast nation, and the educational needs of students cannot be fulfilled by government institutions alone. There is a need for public-private participation to overcome the shortcomings of the education system.
For example, Vidyartha a BYJU’S and Google collaborative digital platform provides comprehensive learning solutions for schools. This platform is available for free to all participating educational institutions. BYJU’S has also undertaken several CSR initiatives, like BYJU’S Education for all and BYJU’S Give Initiative. These initiatives aim to empower close to 5 million children from underserved communities with access to the best education by 2025.
EdTech investors who earlier had an option to choose between India and China may now give more weightage to India, and this could help more EdTech start-ups to emerge in India. More EdTechs could lead to more public-private participation.
Education is the biggest equalizer in any society and EdTech platforms have the power to truly democratize education.
