Consolidation wave: edtech learning theory of survival of the fittest
Indian edtech startups have been acquired in the past year, underscoring a challenging funding scenario for smaller firms and fuelling a wave of consolidation across the stressed industry.
Google-backed edtech startup Adda247 acquired test prep firm Ekagrata Eduserv, Noida-based Schoolnet bought out Housing.com cofounder Advitiya Sharma's startup Genius Teacher, Allen Career Institute picked up Peak XV-backed Doubtnut, while mid-tier IT services firm Happiest Minds took over Macmillan Learning India, adding to the list of recently-closed deals.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIT DelhiCertificate Programme in Data Science & Machine LearningVisitIndian School of BusinessISB Product ManagementVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitIndustry executives said the consolidation is being driven by the fact that smaller companies often offer unique propositions and specialisation in niche categories. Such companies could also be acquired at attractive valuations due to the prolonged funding winter.
“The edtech industry saw a boom during Covid with funding coming through in a big way… Suddenly, there were many edtech platforms in India, but some had flawed models and unit economics. Now, over the past year, several of them have shut down, while others which managed to survive are finding it difficult to continue operating independently,” Adda247 founder and chief executive Anil Nagar told ET. The acquisition of Ekagrata Eduserv
