Education in India is considered to be a most important part of life and it's valued a lot by Indians, Even the most Poor People in India have a mindset to at least even complete the Highschool education to get a small job, The modes of education have been evolving itself every decade, People learn from Online to offline, via apps and video conferencing Etc…, And here comes the new Giant Industry called Ed-Tech, In this Article, we are gonna see about The Rise and Downfall Of Ed- Tech Company’s in India .
What is Ed-Tech?
Ed- Tech is the combination of two things that are Education & Technology, It refers to the combination of hardware and software that are designed to enhance the learning of students and Improve their skillsets, Even though EdTech is in the early stage of its development more than just the use of new technologies for an educational purpose, It gives equal access, opportunity and different types of new connection through online learning the rise of Ed-Tech has made a great impact in Education sector and it’s a revolution in Education Sector.
The Rise Of Ed- Tech :
EdTech represents the Indian future of innovation in education and Ed-tech leads to empowering, increased opportunity and Education for all. India has evolved over the years in the field of education and Ed-Tech. By 2030, It is estimated that the online education and lifetime learning market alone will be worth $15 billion.
Now we get deep dive into how the ed- tech got so popular. Let’s Consider we are back in 2015 when a guy who prepares for JEE needs to go to a physical institute where we take classes will be up to 3 hours a day and per day one subject will be thought to him, Consider the company Expenses like trainers salary, rents, office bearers, admins, Maids Etc.., After reducing all these the profit seems to be high, But many make a mistake here where they didn’t take the count of money spend in Marketing to acquire leads, Back in those days Digital Marketing platforms like Fb, Instagram ads aren’t popular and effective, So the company has to rely on traditional marketing methods like tv, newspaper, billboards, a seminar where the cost of these is pretty high. And by the end of 2016, there comes an internet revolution with the arrival of Jio where internet accessibility and cost have been at a minimal level which makes people consume content much on Online.
And companies too have good growth on Online Modules like pre-recorded courses which has saved a certain amount of money, And the market radius had been expanded from one city to different cities and even countries, From spending lakhs in Traditional marketing and generating minimal leads, People started switching to digital and generate leads in huge numbers and target leads based on location, The profitability of Ed-Tech companies has got high and it makes a large number of investors to invest in different types of Ed-Tech companies who teach Government exams, Coding, Music, K 12, Science Etc…, And the entry barrier of a person starting an Ed-tech is less, Now you may get a question since these companies are profitable and successful why the downfall of Ed-Tech is happening? Let’s See about it.
The Down Fall of EdTech :
When an Entry barrier to Ed-Tech becomes easy, There are tons of startups that have been started in different Niches of Ed-Tech , Due to tons of players in the market who works in the same field the cost per conversion got increased and due to a lot of investors are investing company started to give low cost compared to a competitor, The cost of the service is decreased but the customer accusation cost has been increased drastically and the Ed-Tech started losing path, And then the basement of the downfall has been inaugurated during the Covid times people started consuming content online in enormous numbers so that the companies hired peoples more than their needs and spent on ads in a large scale to attract customers from competitors, After the end of pandemic people moves on to the traditional learning methods and the large number of resources that companies gathered had become nothing and the investors are backing out of companies, Gradually the loss rate and downfall had started working and still it's been in process.
In this article, we have seen the rise and fall of the Ed-Tech Industry. You may have some brand names in mind and will be thinking about whether those brands will survive or not. Our upcoming articles will reveal those companies which will sustain themselves in the Industry and the Types of Companys which can survive. Share your thoughts about some other reasons which I haven’t mentioned in the downfall of Ed-Tech in the comment section.
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