Edtech

Investments - Blume Ventures

classplus - Anyone can teach and sell their recorded courses here, and
students can compare teachers' profiles, pricing, discounts, and other
features using the advanced filter tool to choose the right course for them.

leverageEdu - Leverage Edu is a study abroad platform that helps students

from India, Nigeria, and other emerging countries find higher education
opportunities abroad.

Unacademy - Leverage Edu is a study abroad platform that helps students

from India, Nigeria, and other emerging countries find higher education
opportunities abroad

Evolution of Edtech
2011-13 - Platforms like SchoolShop , Sparsha , Mettl mainly focsuing on
Distributing B2B2C via schools and colleges
2013-15 - Platforms like Mockbank & Unacademy focused on competitive
exams and interviews , they discovred the high wilingness to pay ,
2016-2018 - Platforms like Skillenza , Flipclass , Classplus , Mastree , leverage
Edu grew , Jio Revolution contributed to their growth and online learning TAM
expanded
2019-22 - Include the Covid era , resulting in Boom in edtech space, Formal
education moves online and new innovations seen in edtech space

What’s changed since 2020?

Covid-19 large impact

Schools shifted online. Teachers needed training. Demand for online learning
grew. Daycares closed. Opportunities arose for digital education and hybrid
daycare solutions due to COVID-19.
Education is returning to offline learning with digital support services,
highlighting a hybrid model. Digital tools aid in administration, communication,
experiential learning, assessments, and hobbies, while core education remains
offline for social development and daycare needs

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 B2B EDTECH SAW DOWNFALL BUT B2C GREW

there came a global traction in the Indian Ed-tech space

TAM and ARPU increased for edtech space ,and platforms like Upgrad , Toddle
, Byjus , Playshifu , Cuemath , WhitehatJr , Classplus expanded in Middle east ,
US , UK and canada ,

An M&A spree started for new giants

Byjus acquiring Aaaksh , Great Learning AND upgrad acquiring Talentddge for
high valuations are some examples of big mergers during covid

China’s edtech space crashed

Covid 19 effects comes down , hybrid resumes

the hotness around edtech comes down and funding boom reduces,

What Does this means for Edtech Investors

Frequent acquisitions in EdTech lead to good exits for founders but
disappointing returns for investors, making them cautious. The market is
crowded with high volume and low differentiation among startups, making it
challenging to find unique and successful companies.

What does this mean for edtech startups?

Large capital raises and a pressure
to show rapid growth pushed
startups to spend aggressively on
marketing to acquire users →
pushing up CAC across

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 the market. The trickle down
effect on younger startups forced
them to also spend aggressively

With schools reopening, B2C

edtech players with pure online
channels are bearing the brunt of
customer churn. While this
might mean that hybrid model
may be a long term winner,
smaller players find it tough to go
hybrid with limited cash.

Blume’s Edtech Matrix:

Blume’s EdTech Matrix categorizes EdTech companies based on the age group
they serve and the type of learning they provide. It's divided into five age
groups (PreK, K-8, Grade 8-12, College, Employed Adults) and three learning
types (Core Learning, Supplemental Learning, Catalysts). This helps visualize
the landscape and identify opportunities within different segment

TAM observed in 2020 was $4 billion and grew to $6B in 2022, for PreK-K12 ,
College students and adults and B2B Plays

However there is a spure in EDTECH unicorns but First gen unicorns mostly
fall in the core education space that is GET GOOD MARKS - GET INTO
COLLEGE - GET A JOB

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 Several soonicorns emerge at > $500M such as Classplus , Teachmint ,
Brightchamps , Scaler which will form second gen unicorns which will be
outside core learning / traditional B2C models

The 2021 boom also created a large set of edtech cos > $100M such as

doubnut , CUEMATH , LevEdu , Topppr , InfinityLearn

Overview of EdTech Evolution

The EdTech market is divided into segments based on age groups: PreK (0–
8 years), K-12 (8–18 years), college students (18–25 years), and employed
adults (20–60 years).

Each age group has specific core learning and supplemental learning
needs, such as foundational skills for young children and upskilling for
working adults.

Emerging trends include gamification, Web3 integration, digitization of

schools, and the focus on "life as a CV" where every activity adds to
personal growth and professional prospects.

PreK (Age 0–8) Learning & Development

PreK focuses on foundational skills (numbers, shapes, languages),
behavioral development (emotional management, curiosity), and social
skills (reading habits, peer interaction).

COVID-19 and millennial parents' aspirations boosted this market.

Decision factors include guilt (not spending time with children), fear (child
may fall behind), and convenience (safe places for children while parents
work).

Market size is estimated at $500M, with gamification playing a key role in

engaging young learners.

PreK Daycare & Preschools

As nuclear families grow and more women join the workforce, demand for
daycare and preschools is increasing.

Parents prioritize safety, health, trust, and convenience when selecting

centers.

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 Hybrid models (online + offline) are becoming popular, especially post-
COVID.

Market size is estimated at $350M, with corporate partnerships emerging

as a strong distribution channel.

K12 & 21st-Century Skills

Focus on skills beyond academics, like coding, public speaking, and
personality development.

Parents aspire to expose children to global perspectives and fear their kids
might lag behind peers.

The market is still nascent but has significant potential, especially for
programs emphasizing holistic development.

Market size is estimated at $450M.

Financing for K12 and College

Rising education costs are pushing families to seek financing solutions like
no-cost EMIs and education loans.

Parents are motivated by aspirations for quality education and the belief
that higher education ensures social and economic mobility.

Market size for K12 financing: $140M, and college financing: $170M.

Upskilling for New Graduates & Professionals

Focus on certifications and specialized training to improve job prospects
and career mobility.

Verticalized upskilling (specific to professions like healthcare, finance, etc.)

is becoming a large market.

Career growth, competitiveness, and market signaling are key motivators.

The market is fragmented but represents a $1B+ opportunity.

Communities & Mentorship

Learning is increasingly community-driven, with cohort-based courses and
mentorship programs gaining traction.

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 College students and professionals use these platforms for networking and
skill-building.

Market size: $400M.

Companies offering these services help individuals grow professionally and

personally through peer interactions and guidance.

Summary
ThE Whole thing howcases the breadth of innovation in the EdTech space.
Startups are tackling unique challenges and creating niche solutions across age
groups and educational goals.

Global EdTech Landscape in 2024

The global Education Technology (EdTech) industry is experiencing dynamic
growth, reflecting how education is adapting to a digital-first world. While the
sector has faced challenges, especially in terms of funding, it is simultaneously
seeing immense innovation, particularly with the integration of AI.

Market Growth Trends

The global EdTech market has maintained a steady upward trajectory. In 2023,
it was valued at around $137 billion, and projections suggest it could grow to
nearly $345 billion by 2030 at a 14.1% CAGR. This growth is driven by factors
like increased demand for remote learning, corporate training needs, and
widespread adoption of AI and gamified learning tools.

Investment Trends: The Shift Towards AI

Interestingly, investment in traditional EdTech startups has dropped
considerably. In 2021, these companies attracted around $17 billion, but by
2024, funding plummeted to just $3 billion—the lowest in over a decade.
Meanwhile, investors are now turning their attention to generative AI, which
has seen a meteoric rise in funding, reaching $51 billion this year. This
indicates a shift in focus from standalone educational platforms to technologies
that enhance and personalize learning experiences, such as AI-powered
tutoring.

Technological Innovations

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 AI has become the cornerstone of EdTech innovation. Companies are
leveraging AI to:

Personalize learning pathways based on student performance.

Assist educators by automating administrative tasks like grading.

Enable adaptive learning environments that respond to students' needs in

real-time.

Platforms like Duolingo are already incorporating AI features, which have

positively impacted their user experience and even boosted their market value.

Regional Highlights
Globally, the EdTech boom isn’t uniform:

Asia-Pacific: This region is leading growth, fueled by government

initiatives, increased smartphone penetration, and a vast student population
eager for affordable, high-quality learning.

North America and Europe: While these markets are more mature, they are
heavily investing in high-tech solutions like augmented reality (AR) and
personalized learning tools, maintaining their competitive edge.

Challenges
Despite the growth, challenges persist. One key issue is balancing affordability
with cutting-edge innovation. Many EdTech companies face the difficulty of
scaling globally while addressing local needs, such as language and curriculum
diversity.

Conclusion
The global EdTech landscape in 2024 reflects both opportunities and
recalibrations. While the decline in traditional EdTech funding might seem
alarming, the pivot toward AI suggests that the sector is evolving to meet future
demands. With regional markets like Asia-Pacific growing rapidly and
developed economies pushing for technological sophistication, the future of
EdTech remains promising yet nuanced.

Total Addressable Market (TAM)

Global Market: The global online education market is projected to reach $1
trillion by 2030, with 5% of that potentially targeting niche areas like Vedic

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 Mathematics and skill development.
Global TAM = $50 billion

Indian Market: The Indian online education market is expected to grow to

$10.4 billion by 2025. Given the focus on skill development, 5% is a
reasonable estimate.
Indian TAM = $520 million

Serviceable Available Market (SAM)

Global Market: The skill development sector globally is valued at $50
billion. Skill Before Degree could capture about 10% of this, focusing on
students and professionals.
Global SAM = $5 billion

Indian Market: In India, the skill development market is growing rapidly.

Assuming 15% of this market is relevant to SBD’s focus, we get:
Indian SAM = $225 million

Serviceable Obtainable Market (SOM)

Global SOM: Realistically, SBD could aim to capture 1% of the global SAM,
which is achievable with effective marketing and positioning.
Global SOM = $50 million

Indian SOM: Similarly, in India, capturing 1% of the SAM in the early stages
is a reasonable target.

Indian SOM = $2.25 million

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