How EdTech Companies In India Like Byju’s Are Attracting Investors?

Here Is Why Indian EduTech StartUp Byju’s Is Now Worth More Than $10 Billion

2417 Views | 6 min | June 30, 2020
edtech companies in india

In the last months, the unmet demands of a home-bound population offered new economic opportunities to tech giants all over the world. But, it looks like Edtech Companies in India embraced these new changes faster and took the first-mover advantage to rise and shine. Their increasing Valuation and Funding are the proof.

Recently, one of the best Edtech companies in India, Byju’s, has accomplished the much-desired decacorn status following its most recent funding round driven by Silicon Valley investor Mary Meeker.

This investment of approximately $100 Million is valuing the Bangalore based Byju’s at more than $10.5 billion, making it the second most valuable startup in India, after mobile payment company Paytm, which has a valuation of approximately $16 billion. Founded by a former teacher, Byju Raveendran, the app serves around 57 million students across 1,700 cities in India. This most-desired funding round not just boosted the company’s valuation but also the net worth of Raveendran to $2.3 billion.

For Meeker, who is known for her support to giants like Facebook, Airbnb, and Uber, Byju’s is her first-ever investment in India. But, the question that is in mind of a number of budding entrepreneurs around the world after this deal is: Why Mary’s choice was Byju’s? What potentials did Mary saw in Byju’s before investigating such a hefty amount of money in it?

Let’s find the answer to the same:

5 Reasons Behind VCs Investing Back-to-Back in Byju’s

1. It is Backed by a Robust and Feature-Rich Platform

Byju’s learning app is the world’s largest platform for students with 57 million+ registered users. 

The team of education app developers that created Byju’s used the best in class innovations for integrating amazing features into it using emerging technologies. The sole goal of its development team  was to make learning more easy and effective. 

Some of its key features that make Byju’s one of the best e-learning platforms include interactive video lectures, visualization in action, adaptive learning techniques, personalized learning tools, performance evaluation, and a lot of others. Here’s what Mary Meeker said in a statement for Byju’s:

“Loved by millions of students, Byju’s is a leading comapny in the edu-tech industry. We are vary excited to work with a visionary like Byju and team in their goal to continue to innovate and shape the future of education.”

2. Byju’s Gives Hefty Returns to Its Investors

In the last few years, the Bengaluru-based edtech company has provided some fascinating returns for its existing investors including Times Internet, Sequoia Capital, and Mark Zuckerberg’s association – the Chan Zuckerberg Initiative. 

One of the early investors of the organization, Sequoia has gotten 21.13 times of its Rs 78.8 crore investment adding up to Rs 1,665.33 crore during FY19. The data referenced in Byju’s regulatory filing additionally uncovered that Times Internet has made a 7X return adding up to Rs 206.82 crore during a similar period. Here is how Byju’s is proving beneficial for its investors:

education startups in india

3. It Has Simplified Learning Techniques

The main reason why Byju’s has been so successful is because of the format of its video lessons. The concepts (even the complex ones) in this app are explained in a profoundly visual contextual format with a blend of gamification, animations, live-action formats that make the learning easy and highly engaging.

To make the user experience even better, they even continually examine the viability of content modules for improvements. While content is available in both English and Hindi only as of now, Byju’s is progressing in the direction of making content in other regional languages too to take advantage of the huge vernacular language audience and to deeply disrupt the Indian market. 

4. It Has Factors Like Personalization In-App

Another crucial parameter used by Byju’s to enhance the learning experience for students is its feature of personalization it offers dependent on the proficiency of students.

A rich learning profile is developed for every user and the application records the student’s learning fingerprints, empowering the application to personalize and customize the student’s learning experience.

The app’s personalization feature copies the tasks of a personal tutor, helping in handling students’ shortcomings and empowering the student to learn at their own speed.

Also Read: How Does Udemy Work: The Billion-Dollar Business Model of Edu-Tech Industry Revealed

5. It Has a Profitable Business and Revenue Model

Byju’s operates on a profitable premium business model where a paid membership is required for most of the content. In 2017, Byju’s generated revenues of around 260 crores ($40 million) and almost doubled its 2018 earning, generating almost 520 crores in the same year. 

As per the company Wikipedia Page, Byju’s has said on 27th May 2020 that they have generated around Rs. 2,800cr in revenue in the First Quarter of 2020 alone.

With a great blend of learning and fun, Byju’s is changing the way how the world consumes entertainment. By combining technology with great educational content, the platform is providing the best of both worlds to students and as a result attracting investors as well as users.

The Funding Trends in the Global EdTech Market

As per Business Insider, EdTech unicorns were relatively less until the year 2017 and 2018. But, the trends are changing continuously in this industry. Have a look:

  • In 2017: There were around 45 edtech companies in the world that raised less than $100 Million in funding.
  • In 2018: There were around 31 edtech companies in the world that raised more than $100 Million in funding.
  • In 2019: There were 44 edtech companies that raised around $8.56 billion in funding which is approx. 45.9% of the total global investments.

And, with 2020 bringing such a huge amount in funding for Edtech startups, it is clear that this year, these numbers are going to be sky-high by the end of this year. Also, this sector is going to boom only in the future as well with coronavirus changing the edtech trends forever.

The Scope of EdTech Around the World

Byju's Funding

As per Statista, as of January 2020, there were a total of 14 EdTech companies around the world that had a valuation of over 1 Billion US dollars. 

Out of all of them, Indian Edtech company Byju’s tops the valuation list with a total valuation of $5.8 billion. However, the company’s recent funding round almost doubled its valuation and with it the company has now entered a decacorn status. Out of the remaining 13 EdTech Companies, 5 were from the US, and eight were from China.

In 2017, the U.S accounted for over 58% of all investments made to Edtech companies which changed unexpectedly with Edtech companies in China getting 44% of all funding in 2018 followed by the United States at 32%.

In 2019, the history repeated itself, with the US taking the top position in the list of best ed-tech investment destinations around the world. In 2019, China represented ‘just’ 21.4% of all funding in the world while the US represented 42.9% of all worldwide funding, doubling the investments made in China. 

Despite Edtech companies getting a great amount of funding in the USA and China, EdTech Startups in India are topping the valuation chart. It shows that funding is not just the key to success in this industry but it is the innovation that will drive the success. 

A right blend of emerging technologies and a great idea will lead your venture to success no matter in which country you launch your app.

Have an app idea? Planning to raise funds for the same? Check Our Comprehensive blog on How to Pitch Your App to Investors in 3 Simple Steps and Get Funded

The Evolving Technology in the EdTech Industry

education startups in india

As explained above, innovative platforms created using emerging technologies are the key to success in the EdTech world. Online classes and eBooks are not the new trends anymore when it comes to learning – however, the demand for Artificial Intelligence, AR/VR, Robotics, and blockchain is increasing rapidly.

The expenditure in AR/VR technology to enhance the user experience on EdTech Platforms accounted for just $1.8 Billion in 2018. However, it is expected to surpass $12 Billion by 2025.

Similarly, AI, robotics, and blockchain are also expected to have noteworthy growth curves. While developing an app for the Edtech industry along with all these technologies is easy – getting success like Byju’s with the same is not as easy as a walk in the park.

From the above Stats and Facts, it is clear that technology can not be separated from learning in the coming future. So, if you are planning your venture in this industry and want it to be a successful one – consider hiring an Edtech app development company holding expertise in developing same kinda apps to ensure a seamless EduTech App Development Process.

How Apptunix Can Help You Launch an EdTech Startup?

Apptunix is a leading E-learning app development company that can help you develop a robust and feature-rich platform for a digitally learning world. Our team of expert education web and mobile app developers has helped various Edtech startups in developing user-centric and innovative software solutions to tackle the challenges of the Edtech industry.

Our experts are well-versed with the changing dynamics, challenges, and needs of the education system around the world and we use the latest technologies like AR/VR, Artificial Intelligence, Blockchain, and Robotics to overcome the same challenges.

If you have any further queries or want expert consultation – contact our team now!

Byju's Valuation

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