The education industry in India is going through rapid transformation for the past few years. The digital interventions within the education sector was inevitable, but COVID 19 pandemic did gave an edge and a push towards this upsurge. The education sector is looking towards digital transition at a transformational speed, and the EdTech industry is trying to cope with the same pace.
India has a diverse, dynamic and vivid ed-tech sector, with prominent players such as BYJU’S, Unacademy, PhysicsWallah and others, which have well-established platforms that support millions of learners. In addition to leading, ed-tech companies, there are a number of emerging, niche businesses that focus primarily on AI-related services, coding and career skills. In 2026, leading ed-tech companies include Adda247 (for test prep for government jobs), upGrad (for university-level degrees) and innovators (i.e. Miko – AI Robotics; Scaler Academy – tech careers).
The sizable student populace using EdTech, rapid digital growth, and governmental support for education, India is now one of the largest destinations globally for start-up businesses in the education field. It has been estimated that there are approximately 10,000 EdTech start-ups in India, making it one of the most dynamic areas for entrepreneurs to create companies related to providing digital learning resources, skill-building opportunities, and test prep solutions.
The current value of the Indian edtech industry is estimated to be about US$ 7.5 billion; however, this total value of the edtech market in India is forecasted to grow to nearly US$ 29 billion by 2030, backed by continued growth of internet users, which has since breached the 1 billion mark by 2025, providing ample opportunities for users via digital learning platforms.
The significant portion of the total Indian Edtech market is the K – 12 segment, which dominates and represents over 43% of total Indian Edtech activity. The primary reason for this is to provide supplemental education and prepare students for taking competitive exams. The recent success of a start-up like PhysicsWallah, which achieved a valuation in excess of $5 billion at its initial public offering (IPO) in 2025, demonstrates the ongoing potential of this market and the positive impact of having a strong investor base through increased participation in the public markets.
Currently, the education-start-up sector in India, which experienced a great deal of rapid growth, has now transitioned to a state of consolidation and selective growth. The funding for this sector peaked at US$ 3.6B in 2021 and sharply declined to USD 0.64B in 2024. This decrease is a result of the changing expectations of investors – as many are transitioning from aggressive growth models to sustainable and outcome-oriented business strategies. It is estimated that more than 2,000 EdTech start-ups have closed in the last five years, primarily because of poor unit economics, lack of differentiation, and an over-reliance on expensive customer acquisition models.
“The only person who is educated is the one who has learned how to learn and change.” — Carl Rogers
The recent trends show signs of recovery, despite the current challenges. The first half of 2025 has seen over 5 times growth in EdTech funding, mostly driven by the emergence of start-ups based on areas like AI and workforce upskilling, vernacular education, study abroad services etc.
A major development in education start-ups is the shift towards multiple business models. Many start-ups among today’s newer education companies are creating hybrids of traditional and non-traditional approaches to provide students with educational resources by using a combination of online and offline methods of instruction, in addition to providing educational funding, skill credentials and preparation for employment via an education business model.
Though there is an elemental progress, there are many structural hurdles to overcome in India, as evidenced by the continued presence of a digital divide. Additionally, quality assurance, regulatory oversight, data privacy, and pedagogical effectiveness are all still hot button issues impacting how we think about the long-term sustainability of EdTech. The current status of education start-ups in India indicates a more mature market than it did previously— the initial phase showed explosive growth and high valuations, but the current phase has shifted into one focused on sustainability through innovation and impact.
Written by-
Anjulika Ghoshal Siwach
PhD Scholar
Media and Communication Studies
Doon University
anjulikaghoshalsiwach@gmail.com