New Delhi: When the Covid lockdown turned schools, colleges and coaching centers into lifeless circles, a new energy was infused in the education technology, or edtech, sector. But, with real-world campuses and classrooms in full swing again, the industry is now faced with difficult choices, with some companies seeing mass layoffs and some attempting to diversify into hybrid models.
Over the past two years, Screen School became the ground zero for everything from tutoring to test prep, and edtech ventures boomed.
The industry was valued at $750 million in 2020 and is predicted to reach $4 billion by 2025. Last year, online learning platform BYJU’S became India’s most valuable start-up with a. $16.5 billion Valuation in June, Unacademy raises $440 million in August, upGrad, Eruditus, Vedantu join unicorn club in September.
However, this summer, things don’t look so hot.
Unacademy Allegedly fired from job Nearly 1,000 workers over the past few months to cut costs, even if it Revealed Its first brick-and-mortar store in Delhi in March. Byju too, launched offline coaching classes for kids in February, but when she asked staff at White Hat Jr. (which it acquired in 2020) to report to the office, she noticed 800 resignations in the last few months.
lido struggled To pay salaries and let 150 employees go in February — just months after raising $10 million — and, earlier this month, Vedantu removed 200 people.
Relieved parents are now happily sending their kids off to school buses or to summer camp, and teens are now able to attend in-person prep courses, is the edtech bubble about to burst? ThePrint spoke to industry experts as well as parents to capture the uncertain pulse of the online learning sector.
Schooling will remain ‘real’, but online exam preparation, room for upskilling
Experts say that while basic teaching and learning is expected to be majorly shifted offline, there is still a lot of scope online for test preparation, coding and other specialized skills.
Edtech giant BYJU’s move to introduce “hybrid” classes for students of classes 4 to 10 indicates a “clear directional shift”, according to Nikhil Mahajan, executive director of Career Launcher, an online test prep platform and CL EdTech Branch of Educate.
“Coming from probably the biggest player, [BYJU’S addition of offline classes] This is a clear statement of where the industry will settle. There could be areas like skill up-gradation where things will be 80 per cent online and the rest offline. Other sectors such as teaching and learning, especially for school children, will largely go offline,” Mahajan said. “In my opinion, this would be a healthy hybrid model.”
Experts also said that platforms that have a different value proposition have a higher chance of survival in the long run, and will not be under threat from the return of the offline classroom.
Sriram Subramaniam, co-founder and CEO of Clever Harvey, a career accelerator platform that offers online MBA programs for teens, explained this, citing the example of his own platform.
“Career pursuits, which have emerged as a category with companies like Clever Harvey, do not compete for time with schooling and are therefore not affected by a return to physical classes,” he said.
The platform offers programs in marketing, technology, entrepreneurship, data analysis, UX design, digital marketing and finance for high school students. According to its website, more than 10,000 students have enrolled so far.
Experts agree that there is a possibility to take online courses in specialized areas of learning including web development and technologies, digital marketing and cyber security. There is also room for online development in soft-skills training and English language classes for adults.
Shobit Banga, co-founder and chief product officer of skills enhancement platform Josh Skills, said he is optimistic. “Areas that will remain online include test prep, K-12 and university skill development,” he said.
This applies to students like Nitish Sharma, a class 12 student from Delhi. She attends school but does her preparation for engineering entrance exams online as it saves time and she finds videos useful.
Working adults who want to enhance skills also appreciate the flexibility and convenience of distance learning.
Prathamesh Dhankhar, who is pursuing a course in digital marketing from a Mumbai-based institute, said he has no plans to go to offline classes. “I am currently running a small business and I need to learn additional skills to grow my business. There is nothing better for me than online education,” he said.
Varun Chopra, Co-Founder and CEO of Eduvanz, a student loan provider that is also associated with various edtech platforms, believes that this segment – engaged students and professionals who want to develop their skills and “portfolio” Wants – Will continue to give priority to online courses.
Parents wary of screen time, but ready to learn ‘hybrid’
Some parents who spoke to ThePrint said they are now looking at online learning differently. Although it is no longer considered essential to education, it is still useful in some cases.
One such parent is Gurgaon resident Samridhi Manocha, who last year enrolled her 12-year-old daughter in two online learning platforms. Recently, she canceled a subscription.
Like many parents, Manocha believes her child will benefit most from real-world interactions. “First of all, schools have reopened and my daughter no longer needs to study online. Second, I think the last two years have been very tough for kids in terms of dealing with the pressure of online studies, I just want them to stay off screen now,” she said.
However, this does not mean that Manocha is saying goodbye to online classes. “I enrolled her for an online platform that helps her develop additional skills,” she said.
However, some parents have enough screen time and prefer offline classes for extra-curricular education as well. “I have started sending my eight-year-old son to a neighboring summer camp. I want him to spend time with other kids,” said Jaipur-based parent Akanksha Gulati.
The demand for physical classes from parents actually prompted BYJU’S to start offline classes earlier this year. A BYJU’s spokesperson said, “The decision was taken after extensive research as many parents were found willing to learn offline.” said back then.
(Edited by Asawari Singh)
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