Impact of corona on Ed-Tech Companies.

As Schools, colleges, and tuition classes are closed due to Covid-19 Lockdown across the whole country. Ed-Tech companies are coming forward to help those students. Ed-tech start-up has grabbed this opportunity very well. All the companies are trying to engage more and more students into the online studying portal. Ed-Tech companies are leveraging the ease of access, availability and free content to drive more and more consumption on their platform and they are expecting once the lockdown is over they will be able to convert
25-30% into paid customers.

According to the data currently.

·        Byju has got 60% increase in the number of new students using their app.

·        Vedantu has seen 52 times more surge in the users during the lockdown.

·        Toppr another Ed-tech company has seen 50% growth in new subscribers.

·        Also many well know B-School has started providing online free courses like Oxford, Cambridge, etc.

Earlier online teaching platform was seen as a secondary option and major of the students opted for the offline study methods but with the time online teaching has taken a new shape and is one of that industry which has not been affected with the COVID-19 lockdown. Not only the students but also mane professionals are using this time and are upgrading their skill by learning new skills online. It seems that ed-tech companies are the future of our education companies. There are high chances that in the future we can see that this ed-tech company turns out to be deemed university and people might be applying to study there. Ed-tech companies are growing so rapidly that it is expected they might create employment opportunities for approximately 3000-5000 people. The investment in the Edtech sector amounts to 18.66 billion dollars globally, counting investors such as Facebook, Matrix Partners, and GGV Capital. India is one of the countries where the most significant growth of EdTech firms is taking place. Ronnie Screwvala, the owner of upGrad, reported that his company's staff doubled this year and that he projects tripling it by 2021. In the last two months alone, when news of a possible epidemic with pandemic potential began to spread, the company hired more than 200 graduates and post-graduates from 20 different universities.

The Coronavirus crisis, coming as it did at a critical time in the educational calendar, has triggered a conversation about the future of education in India. Such questions are fuel for the online education industry which has both the ability and the technical know-how to scale up rapidly. Amidst the economic gloom and doom, this is one sunrise sector in India worth keeping a firm eye on. More unicorns might be waiting in the wings.

Thank You,

Regards,

Prerak Shah,

E-Cell,

IBS Mumbai.