The current size of the edtech market is $7.5 billion, and it is expected to grow to $29 billion by 2030, according to a report by the Internet and Mobile Association of India (IAMAI) and consultancy firm Grant Thornton Bharat. Despite encountering numerous obstacles, such as a drop in funding following its height during the Covid-19 era and issues related to corporate governance, the edtech industry has persisted in expanding over the last ten years. 

According to the report, this growth has been driven by increasing aspirations, the development of digital infrastructure, and a cultural change favoring online education.

“The changing aspirations among middle-class families, a competitive job market, and growing awareness of global education standards have pushed stakeholders to embrace alternative learning methods. Edtech platforms have capitalised on this shift by offering interactive, engaging, and personalised learning experiences tailored to the needs of individual students,” it said.

By 2029, the edtech industry is predicted to account for 0.4% of India’s GDP, increasing from 0.1% in 2020. The report noted that this growth will be propelled by a focus on hybrid learning approaches, adaptation of regional content, and the enhancement of skills.

According to Venture Intelligence data, funding in edtech surged to $608 million in 2024, up from $207 million in the prior year. This was still well below the $2.1 billion secured in 2022.

The reduction in funding is primarily attributed to a wider drop in investments and demand across various sectors, influenced by tough macroeconomic conditions and more reserved investor behavior.