The Great ‘Un - Lockdown’: Indian EdTech Disruptions and opportunities for the next decade th 16 December 2020 Confidential and proprietary © Praxian Global Pvt. Ltd.
Foreword Education is one of the primary sectors under focus by the unserved segments have emerged post - COVID. Also, the recently Government of India. India currently has 360M learners across age introduced National Education Policy 2020 is expected to give a groups, which is expected to grow further with an increase in fillip to EdTech (both, in the classroom and outside the classroom) school and college enrolments. The sector has witnessed growing due to increased focus on concept - based learning for students. attention from Government with budgetary allocation increasing This report is intended to provide various industry stakeholders, from US$ 11.3B in 2018 - 19 to US$ 13.2B in 2020 - 21. including business leaders, an overall perspective on the funding The education sector in India is quite fragmented with various trends in key EdTech segments and the emergence of innovative players across segments. The past few years have witnessed the business models within the EdTech sector in India and globally. We emergence of the EdTech sector with supplementary learning have also discussed how various Indian EdTech players have grown opportunities for students and working professionals. The growth of in terms of user base and revenue in the past few years and their the EdTech sector has coincided with increased internet impact on the Indian education sector as a whole. penetration in the country, particularly in Tier 3/4 cities and villages. We, at PGA Labs, look forward to continuing the discussion with The sector has also seen increased investor activity due to the different stakeholders within the education sector and sharing our tremendous growth potential of the EdTech players in India. perspective on the evolving trends in the EdTech space. Segments such as online tutoring and competitive exam preparation have witnessed an increase in investments by PE and VC players in the past few years. Lockdown imposed due to the spread of COVID - 19 has increased the demand for EdTech products in India manifold. In response to Madhur Singhal Aryaman Tandon the growing demand, EdTech players have scaled up their offerings MD, Practice Director, Education Practice Director, and new players with innovative business models catering to Employability and Entrepreneurship Technology and Internet © PGA Labs | 3
Agenda Education in India: An overview Investment activity across EdTech sub - segments Next wave of value creation Appendix: Leading startups driving innovation in EdTech © PGA Labs | 4
Key takeaways 1 Education is a US$ 117B market in India with 360M learners in FY20 ‒ US$ 49B is spent on school Education, of which primary Education comprises 66% of the spend, followed by secondary Education at 27% ‒ US$ 42B is spent on supplementary Education, which primarily comprises private coaching and test preparation ‒ Education and EdTech market can be divided into 5 segments: Pre - K, K - 12 and Test preparation, Higher Education, Continued learni ng and B2B EdTech 2 Education market is expected to grow 2x to US$ 225B by FY25 @ CAGR 14% over FY20 - 25 Indian EdTech startups received a total investment of US$ 2.22B in 2020 alone, compared to US$ 553M in 2019 3 ‒ 92 players received funding in 2020, out of which 61 players received seed funding ‒ BYJU’S and Unacademy raised the most capital, US$ 1.35B and US$ 264M respectively, as of December 2020 ‒ B2B EdTech has received a total funding of US$ 31M in 2017 - 2020 Beyond the rapidly scaling K - 12 and Test prep segments, we have identified ten upcoming trends: 4 ‒ Tutoring/Test preparation 2.0 (On - demand and vernacular learning): Platforms providing on - demand learning/platforms providing ve rnacular Educational resources ‒ Digitization in Educational institutions (B2B – EdTech SaaS): Automation, ERP and LMS solutions for Educational institutions ‒ Digital learning enablement (B2B): Digital platforms providing schools and tutors facility of connecting with students online ‒ Fintech in Education: Platforms providing student loans and loan refinancing options ‒ Student housing: Platforms providing student accommodation services ‒ Education with employment/continuous learning: Platforms providing training and recruitment options ‒ Admission support and counselling: Platforms providing counselling and admission support for higher Education ‒ AR/VR in Education: Simulated learning experience for students and employees ‒ Online STEM learning: Platforms providing STEM courses for students ‒ Extra - curricular learning: Platforms imparting vocational skill training including music, dancing, cooking, etc. © PGA Labs | 5
Five consumer megatrends re - shaping Education and EdTech More holistic view of Focus on tuition fee Education spend Self - paced learning Fixed curriculum supported by NEP Wide selection of tools ‘Fear of missing out’ spend and Educational aids Continuous learning Education as a 18 - 21 years spanning 45yrs+ phase of life Supply constraints (few Uniform democratic location, good teachers) access for all learners Source(s): PGA Labs analysis © PGA Labs | 6
Top ideas for the future: Next wave of EdTech in India Tutoring/Test Digital learning Fintech in Student Digitization in Educational 2 3 4 5 1 preparation 2.0 enablement (B2B) Education housing institutions (B2B) • Platforms providing on - • Automation, ERP and LMS • Digital platforms providing • Platforms providing student • Platforms providing demand learning/coaching solutions for administrative schools and tutors facility of accommodation services students loans and loan from experts operations, attendance, fee connecting with students refinancing options • New housing opportunities collection and other tasks online • Apps/websites providing as foreign universities set us Educational resources in • Exam proctoring solutions for campuses in India vernacular languages schools/institutions Illustrative companies Online STEM Education with employment Admission support AR/VR in Extra - curricular 8 9 10 6 7 learning /Continuous learning and counselling Education learning • Platforms providing industry - • Platforms to search for • Use of immersive tools for • Platforms providing STEM • Platforms imparting oriented courses which help in universities and training with real world like courses including coding & vocational skill training improving the employability of courses online before experience on digital platforms mathematics learning tools including singing, dancing, job - seekers choosing the correct for students painting, mental math, • Platforms providing AR/VR option public speaking etc. • Platforms providing gig workers based immersive learning for training/skilling and recruitment students options Illustrative companies Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 7
Bottom - of - the - pyramid segment holds an untapped US$ 4.8B potential for low - cost EdTech products & services Currently targeted by leading EdTech players Learners in Audience with 261M elite private awareness & means schools Total # K - 12 students 261M * 45% * 20% 45% Market # students in opportunity private Low - cost for bottom - supplementary schools of - the - Education products and services pyramid 55% Learners in segment budget # students in private Government schools schools 261M * 45% * 8 0% 80% US$ 4.8B # students in budget private schools (BPS) Low - cost essential Education offerings for Bharat (Vernacular learning) Learners in INR 125 (US$ 1.6) public/Govt schools Monthly subscription cost 261M * 55% Source(s): Secondary research, PGA Labs analysis © PGA Labs | 8
Total Education spend in India is US$ 117B in FY20 FY20 market size of different Educational sectors in India (US$ B) US$ 26B US$ 42B US$ 49B Higher, vocational Supplementary School Education & Education Education corporate training Vocational, L&D training (white collar), 19% Secondary Education, 27% Allied services, 31% Blue collar training, 12% Test preparation, 29% Primary Education 66% Higher Education, Tutoring/Private coaching, 40% 69% Pre - Primary Education, 7% Total spend in Education industry = US$ 117B Note(s): Pre - primary Education only includes Top - 50 cities, Allied services includes Educational resources, uniforms, stationary, facilities management, out of school learning, etc.; Corporate learners does not include blue collar workers (~200M blue collar learner workforce) © PGA Labs | 9 Source(s) : AISHE, MHRD, IBEF, India skills report, PGA Labs analysis
India is one of the largest market for Education with 360M learners in FY20 Total universe of K - 12 learner universe in learners in India (FY20) India (FY20) 360 360 261 261 261 261 261 >INR 30K , 3% Corporate , INR 18 - 30K , 3% G11 - 12 , 10% 24+ years , 9% 9% INR 12 - 18K , 7% 18 - 23 years , 9% College , 9% Urban , 30% G9 - 10 , 15% Private , 44% 14 - 17 years , … G6 - 8 , 26% Others , 76% <INR 12K , K - 12 , 72% 87% 6 - 13 Rural , 70% years , Government , 48% 56% K - G5 , 49% English , 24% 0 - 5 years , 9% Pre - K , 9% Age Segment Grade-wise Location Management type Medium of instruction School fee Source(s): DICE, AISHE, AICTE, Mettl report, PGA Labs analysis © PGA Labs | 10
Education and EdTech landscape in India Pre - K Higher Education Continued learning B2B EdTech K - 12 and test preparation Career Competitive exam Colleges, Post - Pre - K Institute admin. Tuition for K - 12 development preparation by exam grad, Research labs Education and teaching by grade UG entrance (College entrance 1 - 5 6 - 8 9 - 10 11 - 12 Learning exam post high school) Colleges and Play Schools management system Corporate training universities (UG, PG CAT (Entrance exam for premium etc.) By subject Indian MBA colleges) Civil services (Government services Digital tutoring Maths post - graduation ) enables International exams (Entrance exam for Science Day care Assessment, job foreign universities for post - graduation ) Vocational training search and training and finishing school Languages Parent teacher Others (Bank, Judicial services, CRTs communication and other mgmt. related entrance ) Accounting By value chain Social science Educational Reading material Classroom programs Economics Casual learning Casual learning EdTech SaaS games Crash courses Mock tests Commerce Education Personalized support/ Educational Study Social learning Assessments Content Live learning tools and aids doubt solving aids/kits tools network Student housing School/College management system Alumni engagement p latforms Education financing Education infrastructure Source(s): PGA Labs analysis © PGA Labs | 11
Education landscape [1/2] Pre - K K - 12 Physical Play Schools schools Online Day Care schools The Virtual School India Language classes Story Reading Supplementary & Listening Education Out of school Educational learning Games/Kits Outdoor learning Assessment Activities Test preparation Career guidance Gamified learning Sports and extra - curricular Source(s): Company websites, PGA Labs analysis © PGA Labs | 12
Education landscape [2/2] Higher Education Continued learning B2B EdTech Learning Management Corporate Colleges/ System training Universities Assessment Certification/ online course Digital tutoring Vocational enablers Income share agreement - training based training Job search/ training Casual learning/ training Parent teacher communication Sports and extra - curricular* Housing* EdTech SaaS Education Finishing finance school Others Publishing house Note(s): * refers to indirect spends in the overall Education sector spend © PGA Labs | 13 Source(s): Company websites, PGA Labs analysis
India is home to some of the largest EdTech companies with a global marquee investor base Product/service Player Description Key metrics Total funding* K - 12, live lectures and test • # registered users: 64M US$ 2,320M preparation platform K - 12 online tutoring: Self - paced Provider of e - learning and test • # registered users: 13M US$ 107M preparation platform Competitive exam Platform for exam preparation • # registered users: 30M US$ 354M preparation platform • # teachers: 10K+ K - 12 online tutoring: Provider of online instructor led • # registered users: 25M US$ 206M Instructor - led live personalized tutoring • # teachers: 500+ Smart school enabling Academic content learning • # partner schools: 800+ US$ 39.4M system provider for schools • # teachers covered: 10K+ Connecting students with • # enrolled students: 50K Math tuition platform for certified Math tutors through live • # teachers: 3K+ US$ 67.2M freelance teachers classes Digital tutoring enabler for Provider of tuition class • # registered teachers: 20K US$ 23.3M teachers/institutes management software Immersive learning experience • # registered users: 0.15M Gamified learning US$ 9M using AR/VR (2018) Online higher Education • # registered users: 0.5M Higher Education courses programs for working • # partner colleges: 100+ US$ 6.9M professionals th Note(s): *Figures till 10 December 2020 © PGA Labs | 14 Source(s): PGA Labs deal database, Company websites, PGA Labs analysis
Indian EdTech players are going beyond India and [2/1] becoming relevant globally International Player Markets Offerings Comments launch • Have onboarded GEMS as one of their marquee clients in Gamified learning 2020 MEA MEA through AR/VR • Further plans to expand in USA and Africa • Expected to launch shortly in the UK & ANZ regions Coding classes for 2020 USA & Canada students aged 6 - 16 • Offers an AI based companion robots to support kids learning and development needs 2019 USA AI robot for kids • Plans to expand into elder care in the future • Further planning to expand into other foreign markets after USA, Singapore Coding classes for seed funding round 2019 & UAE students aged 6 - 18 • Acquired US based GreyCampus for ~US$ 15M in 2019 to USA, Asia - Pacific inorganically expand into foreign markets 2019 Executive Education & MEA • Offers college entrance exam Ujian Tulis Berbasis Komputer (UTBK) in Indonesia 2018 Indonesia Test preparation Source(s): Company websites, Press search, PGA Labs analysis © PGA Labs | 15
Indian EdTech players are going beyond India and [2/2] becoming relevant globally International Player Markets Offerings Comments launch • Foreign markets include Malaysia, Singapore, Qatar, UAE, Laos, Indonesia & Kuwait 2017 MEA & SEA Pre - K learning • Retail presence in over 15 countries including UK, Germany, Poland, USA, Canada, EU, Gamified STEM UAE, etc. 2017 MEA, Japan learning • Plans to expand to over more than 30 countries in 2020 USA, UK, Canada, K - 12 math • Available in India and 15 other countries 2016 SEA, UAE curriculum USA, Hong Kong, • Aiming to expand further into other markets within SEA region B2B online video 2016 China, Malaysia & platform Kenya US, UK, Australia K - 12 and test • Targeting Indian diaspora across global locations 2016 • Plans to expand deeper into US, UK, Australia, etc. with local content & MEA preparation • Plans to more aggressively expand its reach in China & Latin America USA, Brazil, Executive and gain larger market share 2013 Europe, UAE, Education • Plans to introduce courses on AI/ML China & SEA • Other countries include South Africa, Ghana, Singapore, Indonesia, USA, Africa, MEA K - 12 and test Kuwait, UAE, etc. 2010 & SEA preparation • Offers local test preparation coaching in some regions Source(s): Company websites, Press search, PGA Labs analysis © PGA Labs | 16
Agenda Education in India: An overview Investment activity across EdTech sub - segments Next wave of value creation Appendix: Leading startups driving innovation in EdTech © PGA Labs | 17
Indian EdTech has raised US$ 4B in the last five years 15 most funded EdTech startups in India Funding Latest Total Latest valuation Player Launch Offerings round funding funding (US$ M) • K - 12 subject preparation Total funding in EdTech in 2011 Series H US$ 200M US$ 2.32B US$ 12B (2020) • Competitive exam preparation India (US$ M) • Live coaching across 60+ exam categories 2015 Series F US$ 154M US$ 354M US$ 2B (2020) • Live classes for K5 - 12 2014 Series D US$ 100M US$ 206M US$ 575M (2020) • JEE/NEET preparation 2,215 • Executive Education programs 2015 Series D US$ 113M US$ 161M US$ 700M (2020) • Live classes for K5 - 12 2013 Series D US$ 46.9M US$ 107M US$ 250 - 350M* (2020) • JEE/NEET preparation • Comprehensive school management 2007 Seed US$ 16.9M US$ 68.9M US$ 150 - 250*(2020) services • Provides live tutoring & online classes for 2011 Series C US$ 40M US$ 67.2M US$ 150 - 250*(2020) school students • Comprehensive teaching course for K5 - 12 2011 Series B US$ 4.3M US$ 61.6M US$ 225M (2013) • Education loan facility 2017 Series B US$ 8.7M US$ 50.8M US$ 80M (2020) • Academic content learning provider for 2012 Series C US$ 28M US$ 39.4M US$ 175M (2020) schools 805 • Online portal for professional certification 2009 Series C US$ 5.91M US$ 33.9M US$ 85M (2016) programs 553 • Gamification based learning platform 2014 Series B US$ 28.5M US$ 28.5M US$ 50 - 100M* (2020) • Live classes for K - 12 258 M 2007 Series C US$ 15.9M US$ 28.3M US$ 70M (2011) 211 • JEE/NEET preparation • Comprehensive campus management 2005 services such as content development, Series C US$ 1.3M US$ 27.6M US$ 60M (2019) student acquisition etc. 2016 2017 2018 2019 2020 YTD • Adaptive learning programs and assessment 2001 Series A US$ 25.1M US$ 25.9M US$ 40M (2019) for school students Note(s): All metrics of 10 December 2020, *estimated © PGA Labs | 18 Source(s): PGA Labs deal database, Company websites, PGA Labs analysis
Startup and investment activity in 2020 across top 5 segments EdTech Key Indian Large segments within EdTech Key investors Total funding segment players Total funding in 2020 (US$ M) (US$ M) K - 12 and Test Preparation 2,215 1,980 Continued Learning Higher Education Tech Pre - K 142 84 B2B EdTech 12 7 2020 YTD* K-12 and Test Continued Higher Pre-K B2B Edtech Preparation Learning Education Tech Note(s): Total funding is not equal to sum of individual components as a few companies are counted in multiple segments; Test pr eparation includes K - 12 teaching for kids along with competitive exam th preparation; Continued learning includes online courses and learning resources for professional learning, skill development a nd casual learning; *Data till 10 December 2020 © PGA Labs | 19 Source(s): PGA Labs deal database, PGA Labs analysis
K - 12 and Test preparation: Segment has received US$ 2B funding in CY20; Self - paced and instructor - led are the key business models K - 12 & Test preparation has received Segment landscape Key busines models US$ 2B funding in CY20 Business Total funding Key Segment Key players Players model (US$ M) investors Total funding (US$ B) 2,320 2.0 107 Indian Self - paced: players 28.3 Pre - recorded 15.6 classes 13.1 11.7 Global 0.7 354 leaders 0.5 206 Instructor - led: Live 0.2 classes 16.9 taken by tutors 3.6 2017 2018 2019 2020 Key 2.7 # players which raised funding investors 12 63 60 61 59 Information portals 7 Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 20
Continued learning: Segment has received US$ 142M funding in CY20; Multi - disciplinary, IT and management courses are the key business models Segment landscape Key busines models Continued learning segment has received Segment Key players Business Total funding Key US$ 142M funding in CY20 Players model (US$ M) investors Total funding (US$ M) 161 Indian 142 players 11.2 Multidisc - iplinary 7.8 courses 3.7 Global 2 leaders 58 6.1 IT - related 30 courses 21 3.3 5.2 Key Managem 2017 2018 2019 2020 investors 0.9 ent # players which raised funding courses 0.3 15 23 25 18 Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 21
Higher Education tech: Segment has received US$ 84M funding in CY20 Segment landscape Key busines models Higher Education segment has Business Total funding Key Segment Key players Players received US$ 84M funding in CY20 model (US$ M) investors Total funding (US$ M) Education 50.8 focused financial Indian 2.8 players players 98 Online 27.6 higher 84 Education Angel 5.9 courses 8.3 Global 48 leaders 4.9 40 College IT solutions 3.1 Angel 2.1 Key investors 12 2017 2018 2019 2020 College # players which raised funding listing 5.3 22 22 21 13 Increase in funding raised per player in 2020 Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 22
Pre - K: Segment has received US$ 12M funding in CY20; DIY Kits players have raised the highest funding Pre - K segment has received Segment landscape Key busines models US$ 12M funding in CY20 Business Total funding Key Segment Key players Players model (US$ M) investors Total funding (US$ M) 17.8 DIY Kits: Indian Interactive 4.15 players 12 smart toys 11 and learning 3.75 10 kits N/A 6 Global Digital leaders storybook s: Interactive 0.23 story - telling apps Language Key 0.73 learning: investors 2017 2018 2019 2020 Learning # players which raised funding games for N/A English 4 7 7 7 Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 23
B2B EdTech: Segment has received a total funding of US$ 7M in CY20 B2B segment has received Segment landscape Key busines models US$ 7M funding in CY20 Business Total funding Key Segment Key players Players model (US$ M) investors Total funding (US$ M) 15.0 8.3 Education Indian manageme players 4.9 13 nt solutions for 4.0 schools/coll eges 3.6 9 2.2 7 Global Angel 7.7 leaders 7.7 Testing & 3.1 2 assessment 1.9 Key 0.9 investors 2017 2018 2019 2020 # players which raised funding Employee 2.1 LMS 21 15 8 8 Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 24
Agenda Education in India: An overview Investment activity across EdTech sub - segments Next wave of value creation Appendix: Leading startups driving innovation in EdTech © PGA Labs | 25
Five consumer megatrends re - shaping Education and EdTech More holistic view of Focus on tuition fee Education spend Self - paced learning Fixed curriculum supported by NEP Wide selection of tools ‘Fear of missing out’ spend and Educational aids Continuous learning Education as a 18 - 21 years spanning 45yrs+ phase of life Supply constraints (few Uniform democratic location, good teachers) access for all learners Source(s): PGA Labs analysis © PGA Labs | 26
Top ideas for the future: Next wave of EdTech in India Tutoring/Test Digital learning Fintech in Student Digitization in Educational 2 3 4 5 1 preparation 2.0 enablement (B2B) Education housing institutions (B2B) • Platforms providing on - • Automation, ERP and LMS • Digital platforms providing • Platforms providing student • Platforms providing demand learning/coaching solutions for administrative schools and tutors facility of accommodation services students loans and loan from experts operations, attendance, fee connecting with students refinancing options • New housing opportunities collection and other tasks online • Apps/websites providing as foreign universities set us Educational resources in • Exam proctoring solutions for campuses in India vernacular languages schools/institutions Illustrative companies Online STEM Education with employment Admission support AR/VR in Extra - curricular 8 9 10 6 7 learning /Continuous learning and counselling Education learning • Platforms providing industry - • Platforms to search for • Use of immersive tools for • Platforms providing STEM • Platforms imparting oriented courses which help in universities and training with real world like courses including coding & vocational skill training improving the employability of courses online before experience on digital platforms mathematics learning tools including singing, dancing, job - seekers choosing the correct for students painting, mental math, • Platforms providing AR/VR option public speaking etc. • Platforms providing gig workers based immersive learning for training/skilling and recruitment students options Illustrative companies Source(s): PGA Labs deal database, PGA Labs analysis © PGA Labs | 27
Tutoring/Test preparation 2.0 (On - demand and vernacular learning): Platforms providing on - demand learning/coaching and solutions in vernacular languages Example Description of archetype Tutoring/Test • Platforms providing on - demand learning from Company preparation 2.0: experts Platforms providing • Platforms for student - tutor matching on - demand • Teaching, test preparation and doubt solving in learning/coaching vernacular languages solutions Key Investors Notable players • Provides interactive language training and on - demand training from experts globally; uses big Indian players data analytics for advanced algorithmic matching between students, teaching consultants and Solutions offered • One tap access to students/learners for quality digital content guidance by experts around the globe • Provides STEM courses to K - 12 students in Factors that can • >65% of internet users in India using Internet in mainland China push the concept in vernacular languages India # tutors • 20K+ tutors in 135+ countries • Potential for topical experts to freelance and leverage their expertise • 2012: US$ 15M Funding Raised • 2014: US$ 100M • Difficulty in curation of expertise of the topical • 2015: US$ 200M Potential challenges experts • Timely matching between student – tutor/expert Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 28
Digitization in Educational institutions (B2B – EdTech SaaS): Platforms to automate administrative operations in schools Example Description of archetype • Automation and ERP solutions for administrative Formely Connexeo ERP solutions for operations, attendance, fee collection and other Company merged with Vanco school: Software payment solutions tasks solutions for school • Exam proctoring solutions for schools/institutions academic and • Learning management solutions for Educational administrative needs institutions Key Investors Notable players Meiyu Online (outside India) • Accept online payments for school fees, with Technology reconciliation • Class management software with options to view Indian players and modify class schedules, take attendance, Solutions offered send reminders etc. • Online class registration, and tracking and • Student/Teacher ratio in India is 24:1 – school managing enrollments ERP help teachers streamline classroom Factors that can activities, freeing up their time push the concept in • Indian parents heavily involved in the Education • More than US$ 15B in transactions processed India of their children – ERP solutions regularly update Users/Transactions per year the parents about school activities etc. • Trusted by 1,200+ school districts • ERP solutions and other school management Potential challenges solutions can be expensive Funding Raised • 2018: US$ 110M (Funding raised by Connexeo ) • Staff not trained to used ERP solutions Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 29
Digital learning enablement (B2B): Connect offline teachers and institutes with their students online Example Description of archetype • Platform to enable offline teachers/institutes to connect with their students online Company Digital teaching • Ability to expand student base without any enablement: Apps/ physical constraints (such as seating space in the software enabling institute) for tutors offline tutors to teach Key Investors • All activities can be done online – live and online recorded classes, timetable scheduling, performance monitoring, fee payment etc. • Online Education platform that connects students and teachers Notable players Solutions offered • Tool for parents to supervise on the academic (outside India) status of their children • AI based tool to identify student’s weaknesses Indian players • 100K+ schools Key metrics • 50M+ elementary school teachers, students and Factors that can • Large number of private tutors/coaching parents push the concept in institutes that want to provide classes online India • 2014: US$ 1M • 2015: US$ 10M • Low technical know - how among teachers and • 2016: US$ 15M coaching institutes using traditional methods of Funding raised • 2017: US$ 30.4M Potential challenges teaching • 2018: US$ 100M • Continued preference for offline classes among • 2019: US$ 150M parents Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 30
Fintech in Education: Platforms providing Education loan for students Example Description of archetype Fintech in • Marketplaces for Education loans for both Education: Platforms Education in India and abroad Company providing Education • Platforms providing Education loans and student loans for students loan refinancing options to students Key Investors Notable players (outside India) Indian players • Platform for business and consumer loans • Offerings include student loans, personal loans, Solutions offered home loans, small business financing etc. • Young population with one of the largest pools of Factors that can students push the concept in • Rising cost of Education India • 2011: US$ 4M • Income Tax benefits under section 80E of IT Act • 2012: US$ 77M • 2014: US$ 80M Funding Raised • High NPA levels for banks • 2015: US$ 1.3B Potential challenges • Reduction in Education loans by banks • 2017: US$ 605M • Challenge for loan marketplaces • 2019: US$ 539M Note(s): 1 US$ = 70 INR © PGA Labs | 31 Source(s): PGA Labs deal database, Company websites, PGA Labs analysis
Student housing: Platforms providing student accommodation services Example Description of archetype Student housing: Company Companies providing • Platforms providing accommodation services for accommodation students services for students Key Investors Notable players (outside India) • Online marketplace to book for student accommodations • Platform enables students to compare and Solutions offered Indian players search rooms near their universities • Vets and approves very housing provider featured on the platform • High enrollment in universities: More than 34 Factors that can million students enrolled as of June 2019 push the concept in • Present in 29 countries globally • 20% of the current accommodation demand met Key metrics India • 400+ cities worldwide by university - operated supply • 2016: US$ 70M • Competition from unorganized sector Funding raised Potential challenges • 2019: US$ 10M • Standardization and maintenance of property Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 32
Education with employment/Continuous learning: Skill building courses with a recruitment support service Example Description of archetype Education with • Students opt for industry - oriented tech courses Company employment/ with placement support for tech jobs Continuous • Gig workers training and recruitment portals learning: Placement • Platforms improving the employability of job oriented tech courses seekers and helping them land better jobs Key Investors for people seeking jobs • ~900 hours of classes/course (spread over 9 Program Details Notable players months for full - time students) (outside India) • Upfront: US$ 15K* upfront course fee payment • ISA: 17% of salary for two years, with a cap of Program Fee US$ 30K in total payment Indian players • 2017: US$ 0.1M • Large number of jobseekers seeking re - skilling/ Factors that can • 2018: US$ 18M upskilling opportunities Funding raised push the concept in • 2019: US$ 30M • Need for organized training platforms for gig India • 2020: US$ 74M workers • Low realization of need for additional courses • >50%, within 6 months of graduation apart from curriculum for job placements Average Placement Potential challenges • Curation and delivery of skilling courses for gig workers through online medium Note(s): Includes 50% discount currently running on the website © PGA Labs | 33 Source(s): PGA Labs deal database, Company websites, PGA Labs analysis
Admission support and counselling: Companies providing support for higher Education admission process Example Description of archetype • Online platform that enable students to search Admission support Educational courses and provide support in & counselling: Company application process Platforms providing • Platforms connecting students with universities, admission support to colleges, tutors, and mentors students going • Provides mentorship, Test preparation, and abroad Key Investors college application consultation Notable players • Students can discover universities and programs (outside India) abroad free of cost Business model • Partner colleges can get access to well qualified students and must pay for this access Indian players • 1,200+ college/university partnerships • High number of Indian students abroad: 753,000 • Access to 30K+ programs Factors that can Key metrics • 4K+ recruitment partners Indian students as of July 2018 push the concept in • World’s second - largest source of international • 120K+ students India students • 2018: US$ 12.8M • Real time maintenance of data and course Funding Raised • 2019: US$ 40.9M Potential challenges information • 2020: US$ 125.9M Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 34
AR/VR in EdTech: Simulated learning experience for students/employees Example Description of archetype AR/VR - based learning: Simulated • Use of immersive tools for training with real Company learning experience world like experience on digital platforms for employee • Platforms providing AR/VR immersive learning training/student for students learning Key Investors Notable players (outside India) • Platform allowing the creation, management and experience of immersive training with data - Solutions offered driven insights and predictive analytics • VR training for employees in different industries Indian players • Health and safety training • Operational efficiency training Factors that can • Increasing interest of policymakers – Key Use Cases push the concept in Government plans to set up India’s first AR/VR • Customer service training India based skill training center at IIT Varanasi • Sports team training • Higher cost of AR/VR - based EdTech products • 2016: US$ 5M • High cultural diversity leading to difficulty in Funding Raised • 2018: US$ 16M Potential challenges implementing a uniform AR/VR product • 2020: US$ 30M • Low computer skills among teachers Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 35
Online STEM learning: Problem solving and learning platform for science, technology, engineering & mathematics Example Description of archetype • Platforms providing live classes, learning Online mathematics materials, doubt solving and assessment for Company learning platform: mathematics Online platforms to • Platforms using AI technology to track students provide support in progress and customize courses mathematics • Interactive and conversation - based solutions Key Investors Notable players (outside India) • Provides live classes, • Provides teaching tools, Solutions offered • Provides learning materials, and assessments • Caters to 3 - 9 years old children Indian players • Uses AI to track child’s progress • Need for innovation: One in 10 children suffer Factors that can from ‘despair and rage’ while solving Number of users • 250K+ students in over 360 cities in 50 countries mathematical problems push the concept in India • Increasing importance of critical thinking and problem - solving skills for jobs • Niche platforms with focus on single subject • 2019: US$ 15M Funding Raised Potential challenges • Continued preference for offline classes among • 2020: US$ 180M parents Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 36
Extra - curricular learning: Platforms/apps to learn vocational skills like music, dance, cooking, photography etc. Example Description of archetype Extra - curricular • Apps/platforms for learning to play instruments learning: Company • Online platforms for booking music, dance, Platforms/apps to painting etc. classes offline learn vocational skills • Platforms with courses/videos to build vocational like music, dance, skills cooking etc. Key Investors Notable players (outside India) • Offers instrument activated apps that gives Solutions offered instant real time feedback on how the music is played on piano, keyboard etc. Indian players • 10M+ downloads • 1M music learners per week • Large and aspiring young Indian population Metrics • Used by 10% of US music teachers Factors that can seeking more opportunities to acquire new skills • Simply Piano( JoyTunes app) ranked #1 push the concept in • Popularity of concept of music and dance classes Education App in over 20 countries India in India – Furtados School of Music (FSM) has • 2012: US$ 500K 75K+ students • 2013: US$ 1.5M • Niche platforms with often focus on single • 2014: US$ 5M Funding Raised Potential challenges vocational skill • 2018: US$ 10M • Traditionally, preference for offline hobby learning • 2019: US$ 25M Source(s): PGA Labs deal database, Company websites, PGA Labs analysis © PGA Labs | 37
Agenda Education in India: An overview Investment activity across EdTech sub - segments Next wave of value creation Appendix: Leading startups driving innovation in EdTech © PGA Labs | 38
1. K - 12 online tutoring: Self - paced BYJU’S: Largest K - 12 supplementary Education player with asynchronous content and live learning Founded # employees Total funding* Latest funding 2011 26K ~US$ 2.32B US$ 200M (Nov’20) Key offerings Key investors Key metrics Revenue (US$ M) • Disney BYJU’S Early Learn: For LKG - Grade 3 students • BYJU’S app: Grade 4 - 12 students; CBSE/ICSE/State boards and JEE/NEET 373.3 exam preparation • BYJU’S Classes: Live classes for Grade 4 - 12 students; CBSE/ICSE/State boards CAGR and competitive exam preparation 124% 182.3 Brands acquired 2017 Impact 66.7 33.1 • Introduced the concept of online learning 14.7 2018 at a mass scale FY16 FY17 FY18 FY19 FY20 • More than 15M students using BYJU’S 2019 mobile app Year FY21 YTD* FY16 FY17 FY18 FY19 FY20 • More than 0.9M paid subscribers on the 2020 platform #Users 4M 7M 15M 30M 42M 64M th Note(s): *Data till 10 December 2020 © PGA Labs | 39 Source(s): PGA Labs deal database, Company website, , PGA Labs analysis
2. K - 12 online tutoring: Self - paced Toppr : Online platform offering K5 - 12 online classes along with courses in subjects like robotics Founded # employees Total funding* Latest funding ~1K 2013 ~US$ 107M US$ 47M (Jul’20) Key offerings Key investors Key metrics • K5 - 12 coaching and test preparation Revenue (US$ M) for JEE, NEET, etc. • One - on - one coding classes for kids aged 6 - 18 8.1 • Learning centers for students CAGR interested in robotics, experimental physics etc. 135% • School OS for digitalizing learning in schools Impact 3.4 • All chapters divided into various goals Brands acquired with students suggested to move to the next goal only after achieving >70% 2015 accuracy • Helps in long - term confidence FY18 FY19 improvement and leads to improved 2016 scores Year FY18 FY19 FY20 FY21 YTD* #Users 2M 4M 8M 13M th Note(s): *Data till 10 December 2020 © PGA Labs | 40 Source(s): PGA Labs deal database, Company website, PGA Labs analysis Investment
3. Competitive exam preparation platform Unacademy : Online platform for competitive exam preparation Founded # employees Total funding* Latest funding ~1.5K 2015 ~US$ 354M US$ 154M (Sep’20) Raised an undisclosed amount in last week of November 2020 Key offerings Key investors Key metrics • 1.5K+ daily online live coaching Revenue (US$ M) classes across 60+ exams categories • Repository of recorded video classes (1M+ videos) 16.0 • Live tests and quizzes CAGR 448% Brands acquired Impact 2.9 2018 • Provided an alternative to the 0.7 0.1 expensive coaching institutes for students preparing for competitive FY17 FY18 FY19 FY20 examinations Year FY17 FY18 FY19 FY20 FY21 YTD* • Platform for private teachers to offer their 2020 lectures on the website/app and earn #Users 0.5M 1M 2M 18M 30M money th Note(s): *Data till 10 December 2020 © PGA Labs | 41 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
4. K - 12 online tutoring: Instructor - led Vedantu : Online platform for instructor - led live classes Founded # employees Total funding* Latest funding ~4.5K 2014 ~US$ 206M US$ 100M (Jul’20) Key offerings Key investors Key metrics Revenue (US$ M) • Online classes for K5 - 12 across subjects including languages • Test preparation for JEE, NEET • Live tests and quizzes 10.0 • Coding courses for kids CAGR 364% Brands acquired 1.7 Impact 0.7 0.1 • Platform adopts AI & ML for personalizing teaching as well as learning for each 2020 FY17 FY18 FY19 FY20 student and has been developed for Year FY17 FY18 FY19 FY20 FY21 YTD* making LIVE classes more enticing and #Users - 0.05M - 15M 25M engaging • More than 150K paid subscribers th Note(s): *Employee count is as on July 30, 2020; #Data till 10 December 2020 © PGA Labs | 42 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
5. Smart school enabling system Lead School: Platform enabling delivery of school Education digitally Founded # employees Total funding* Latest funding ~400 2012 ~US$ 39.4M US$ 28M (Aug’20) Key offerings Key metrics Key investors Revenue (US$ M) • Integrated Learning System to 3.8 enable schools to digitize their curriculum • Customized timetable for schools CAGR • Live and recorded classes for 196% students • Prepare teaching resources and track student progress Impact 0.9 • Enabled schools to provide live and 0.3 Stakeholders 0.1 recorded classes post - lockdown • Regular tracking of student performance • Parents : Regular updates, child FY17 FY18 FY19 FY20 enabled overall improvement in their progress tracker performance Year FY17 FY18 FY19 FY20 FY21 YTD* • Teacher : Digital classroom #Partner resources, student progress reports - - 150 500 800 schools • School Principal : Teacher and student progress overview th Note(s): *Data till 10 December 2020 © PGA Labs | 43 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
6. Math tuition platform for freelance teachers Cuemath : Platform connecting students with trained teachers near their locality Founded # employees Total funding* Latest funding ~200* 2011 ~US$ 67.2M US$ 40M (Dec’20) Key offerings Key investors Key metrics Revenue (US$ M) • Online Math and coding classes for kids in G1 - 10 (earlier had only offline 2.1 classes but has shifted to online mode post - lockdown) • 1:1 online classes for students CAGR outside India 182% 1.0 Business model 0.5 • Zero capex model: Teachers take online classes from their home 0.1 Impact (earlier in - person classes were also taken at teachers’ homes) FY16 FY17 FY18 FY19 • Revolutionized the unorganized private # Year FY16 FY17 FY18 FY19 FY21 YTD • International coverage: 1 - on - 1 live tuition sector by connecting students classes with 500+ international # enrolled with trained teachers near their locality - - 20K - 50K students (primarily USA and students Canada) • Gamified learning through tab - based and card - based exercises th Note(s): *Employee count is as on June 30, 2020; #Data till 10 December 2020 © PGA Labs | 44 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
7. Digital tutoring enabler for teachers/institutes Classplus : Online platform to connect teachers and institutes with their students Founded # employees Total funding* Revenue Latest funding ~500 2015 ~US$ 23.3M US$ 0.1M (FY19 US$ 10.2M (Sep’20) Key offerings Key metrics Key investors Number of registered teachers (K) • Platform for teachers/coaching institutes to launch their courses online by uploading videos • Online assessments and Not a marketplace as the app feedback for students does not connect new 20 students with teachers Brands acquired CAGR Impact 308 % • Enabled offline tuition teachers and coaching institutes to connect with their students online 2020 • Simplified student - teacher interaction by bringing 1.2 all services on a single platform – Course delivery, fee collection, tracking student progress etc. 2018 2020YTD Merak Software Solutions th Note(s): *Data till 10 December 2020 © PGA Labs | 45 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
8. Higher Education courses upGrad : Online platform for delivering upskilling courses to students and professionals Founded # employees Total funding* Latest funding ~1.1K* 2015 ~US$ 6.9M US$ 6.7M Key offerings Key metrics Key investors Revenue (US$ M) • Degree, diploma and certification courses across data science, managements, marketing, etc. 33.3 • B2B courses for corporates • Placement support & mentoring CAGR 162% Brands acquired Impact 11.4 2016 • Introduced revolutionary courses to bridge the skill gap that exists in students 4.9 2018 due to the current course structure in 1.9 colleges/universities 2019 • Practical training through live projects FY17 FY18 FY19 FY20 • Improved employability of students # 2020 Year FY17 FY18 FY19 FY20 FY21 YTD #Users - - 0.17M 0.3M 0.5M 2020 th Note(s): *Employee count is as on June 30, 2020; #Data till 10 December 2020 © PGA Labs | 46 Source(s): PGA Labs deal database, Company website, PGA Labs analysis
About IVCA IVCA is the oldest and most influential PE & VC industry body in India, its purpose is to promote the Alternative Investment Asset class. IVCA supports the ecosystem by facilitating advocacy discussion with the Government of India, policymakers, regulators, and supports the entrepreneurial activity, innovation, and job creation in India. EdTech is one sector which goes in sync with the Moore’s Law, with the advancing tech, Education Technologies in India have become a change maker. This report covers investment activities across EdTech and analyses what the future of innovation holds in the next decade. Whereas these are testing times for so many entrepreneurs globally, EdTech in India has emerged a clear winner, this report also projects how new Rajat Tandon unicorns are being presented globally, putting India yet again on the President, IVCA Globe in regard to tech, innovation and digital consumption. © PGA Labs | 47
How we help our clients Specific practitioner expertise We work alongside leading investors, Educational institutions & global foundations across product, technology, and service offering segments. Aryaman Tandon Madhur Singhal Digital Orientation Domain Leader Practice Leader Enabling our partners navigate the tectonic digital transformation to EdTech and Education, Employability deliver quality content and gain market attractiveness and Entrepreneurship Technology/Internet Customer Insight & Brand Loyalty Measuring and driving improvement in NPS scores and customer loyalty through detailed customer insights and proven frameworks Vaibhav Tamrakar Kaushal Patel Vice President Practice Member EdTech Gig economy and Test Prep Cost Transformation Identifying sustainable opportunities for profit improvement by focusing on strategic cost management Mit Desai Abhishek Maiti Growth and Scale Up Practice Member Growing fast and scaling up by optimizing client offerings, pricing, Vice President promotion, future models, and VAS Pre - K, Higher Ed Blue collar learning Profitability and unit economics Developing unit economics for any new product/market launch and driving profitability by operational efficiency Deep Ghose Dastidar Harish Kumar K R Practice Member Practice Member Process Re - engineering K12 and Test Prep Pre - K, School chains Designing and implementing processes based on the principles of design thinking to enhance customer experience
How we help our clients We work with new - age internet businesses extensively across growth strategy, Specific practitioner expertise international market entry, business plan review, customer life cycle management preparing them for the digital economy transformation. Aryaman Tandon Madhur Singhal Concept validation and scaling up Practice Leader Practice Leader Enabling innovative startups in concept testing, customer validation, and Consumer Internet and Internet and Ecommerce accelerating the process of scaling - up Ecommerce Category and channel expansion Helping clients grow their business by expanding their product Shishir Mankad Abhishek Maiti categories, expanding into new categories and launching private labels Domain Leader Vice President Fintech and Digital lending Shared mobility, Hospitality and Customer growth and experience E - groceries Powering growth strategies through detailed customer segmentation and behavioral analysis Ashutosh Somani Vibhor Gupta Distribution and Go - to - Market Practice Member Practice Member Creating comprehensive roadmaps for launching new products or expanding to new markets Foodtech , EdTech, and Real Mobility, HealthTech, and estate Tech Hospitality Operational efficiency & Cost Reduction Delivering sustainable reduction in operating costs based on rigorous cost benchmarking and zero based assessment Sushman Das Kaushal Patel Practice Member Practice Member Ecommerce, EdTech, and Ecommerce, Real estate tech, Enhancing organization productivity Mobility and Internet brands Re - imagining employee roles and driving great organization productivity and efficiency
How we help our clients We have a wide bouquet of deep business research skills and advanced analysis capabilities. Our research is unique, focusses on “What and Why” and our approach is We have successfully worked with clients across verticals holistic unlike a typical MR firm. Benchmarking (cost, Sector360: Scan/ 50+ 100+ 250+ product features) fact - base Comparison of players across Detailed review and VC firms Investors Engagements relevant parameters landscape of a sector Our people have deep experience in Business research Company360: Competitor Company review intelligence Aryaman Tandon Seema Karwa Detailed review of company’s Intelligence and analysis Director Vice President details, strategy and operations of a company’s tactics Consumer Internet and FoodTech , Investments, and Ecommerce Consumer tech Survey administration and Voice of the Abhishek Maiti Vaibhav Tamrakar management customer Design, oversee, implement, Customer interviews and Vice President Vice President analyze and present findings survey - based analysis Shared mobility, Hospitality and EdTech, FoodTech , and E - groceries Mobility Web scraping Process mapping and analytics and best practices Scraping and analysis of public Enlist best practices data
About Praxis Praxis Global Alliance is the next - gen management consulting and business research services firm revolutionizing the way consulting projects are delivered. We deliver practical solutions to the toughest business problems, by uniquely combining domain practi tio ner expertise, AI - led research approaches, and digital technologies. (FIG) Pre - deal support, commercial Data engineering and Cutting - edge technology - led Organization and Talent due diligence, post - acquisition analytics, AI, ML, Open Data business and market effectiveness value creation and visualization solutions research and tools (BET) Next - gen practitioner - led business advisory and consulting offering lean - cost and long duration engagement We work with agility, flexibility and embed with your teams to enable Praxis is ‘Practical’ SUPERIOR OUTCOMES We bring the best domain expertise with our deep pool of industry We leverage technology deeply to enable higher ROI on your practitioners and implementation teams as two - in - a - box consulting and analytics spend © Praxis Global Alliance | 51