The Indian edtech sector experienced a significant resurgence in 2024, recording a remarkable 96% growth in funding during the first half of the year. From January to June 2024, Indian edtech companies attracted $164 million in funding, a sharp increase from the $81.9 million raised in the same period in 2023, according to Tracxn, a market intelligence platform.
With more than 11,000 active companies, India’s edtech ecosystem ranks as the third highest-funded globally, just behind the United States and China. The sector is home to six unicorns, making it the second highest globally after the US. Although funding levels remain below the highs of 2021, the 2024 growth demonstrates a renewed interest from investors despite macroeconomic challenges and the shift back to traditional classroom learning.
Neha Singh, Co-founder of Tracxn, highlighted the sector’s ability to adapt to changing market conditions. “Despite the overall cooling of the funding environment since 2021, the edtech sector has shown remarkable resilience. Investors are still interested, especially as companies blend traditional learning with digital education innovations,” she said.
While many schools in India have reopened for physical classes, the demand for online learning platforms and professional upskilling programs remains strong. These areas, where offline education often falls short, continue to drive growth in the edtech space.
Bengaluru remains a dominant hub for the Indian edtech industry, accounting for over 64% of the total funds raised, followed by Delhi and Mumbai. Despite ongoing challenges, the sector benefits from a combination of high demand, technological advancements, and supportive government policies, such as the National Education Policy 2020.
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However, some sub-sectors within edtech are facing difficulties. The once-lucrative test preparation segment, which garnered $7 billion in funding, has seen a sharp decline. Leading investors like Blume Ventures, Wellfound, and LetsVenture are shifting focus toward other sub-sectors like professional education and vocational training.
Although only one funding round exceeded $100 million in 2024, compared to multiple rounds in prior years, the Indian edtech sector’s long-term growth outlook remains promising. Late-stage funding rounds continue to dominate, and startups are evolving to meet the changing needs of learners.
With the continued rise of technology-driven education solutions, the Indian edtech market is expected to innovate further and meet the growing demand for flexible, high-quality education in an ever-evolving landscape. This strong foundation, coupled with digital advancements, positions the edtech industry in India for sustainable growth in the years to come.
