Anushruti Singh
Cracks started to appear in the edtech sector in February, when the Ronnie Screwvala backed firm Lido announced its closure. Since then, reports about shutdowns and pink slips being handed out in the edtech sector have been hogging the limelight in the media. Firms like Unacademy, BYJU’S, Whitehat Jr., Toppr, Vedantu, FrontRow, and Udayy among many others have been in the eye of the storm recently.
According to data sourced from various media reports, it is probable that over 10,000 employees have been laid off by edtech start-ups. Business priorities, team optimisation, long term goals and low growth are some of the top reasons that the CXOs have given for this phenomenon. But most of all, the sector has been reeling under global macroeconomic conditions coupled with the reopening of schools, colleges and physical tuition centres.
Now the question is—is the edtech sector in India on the decline?
May be, but it will always remain the support system of the conventional education system in India, answers Dr Silpi Sahoo in a one-on-one conversation with SME Futures. She is the Chairperson at SAI International Education Group and has worked extensively to build the education system of the country and generate employment in this field.
Edited excerpts:
Since February, the Indian edtech space has been in the news for massive layoffs. Is edtech failing? What are your thoughts?
The decelerating demand for technology- grounded education services, coupled with the financial downtime, has had a domino effect on India’s thriving edtech companies, forcing them to lay off workers, go slow on expansion, cut down excess spending and explore newer profit avenues. Some edtech companies have indeed shut shop.
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One of the main reasons for this phenomenon is that practically, edtech enterprises will always be a support system (enabler) for the conventional education sector. However, it can never replace actual classroom learning. Adding more value to the existing methodology of learning instead of trying to completely replace it is what most of these edtech companies have overlooked.
The layoffs at several edtech start-ups such as BYJU’S, Unacademy, Vedanta, Eruditus, Frontrow, Invact Metaversity and Yellow Class should be considered. In my view, all these companies have been downsizing for cognate issues.
To begin with, these developments came after the Indian edtech sector witnessed a dream run. The arena churned out unicorns in a short span of time, as the pandemic forced the physical learning institutes to close. The enthusiasm over edtech made it one of the most highly funded sectors in India and beyond. The industry raised about $5 billon in India as per reports.
Now, with the epidemic now on the wane, these companies are seeing massive layoffs.
At the same time, Ivy League Institutions like Harvard, Stanford and Columbia are offering interesting courses via distance learning to the whole world. They didn’t start this only after the pandemic. Similarly, various international schools in India that follow a blended learning format are still doing well for themselves, as their approach was never based on the idea of completely replacing a conducive classroom environment.
But the education system is becoming hybrid. Then why are the edtech companies finding it hard to stay relevant? Where are they going wrong?
That’s true! I believe that replicating a model that has been largely limited to books (i.e., the classroom style of learning) now will face several impediments. It’s better to sustain and build more on the idea to accentuate the level of the learning being provided in the classroom by adding more value to it.
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Furthermore, parents have become more reluctant in subscribing to online classes now that students are returning to schools and colleges. There’s this feeling of missing out, especially in the case of parents dealing with children who are still in their formative years. They’re concerned about their child’s confidence and social skills taking a hit, as they have had no interactions in a social setting in the last 2 years.
Looking at the script from a non-pandemic lens, for any start-up, including in edtech, before they start with their venture, their concept must be grounded on one unique strategy and a long- term vision. And if their vision was to capitalise on only one short- term problem – the “pandemic”- then the motive of an association itself is questionable; forget about its growth.
Students these days want to learn according to their own learning style and at their own pace, and much of the innovation should be aimed at making personalisation as effective as possible.
To make this vision a reality, data and analytics will be critical. Conducting an accurate market segmentation and research in the concerned country will reap these companies the maximum results. A client- centric, value- driven model is imperative for any association to survive, and the education sector is no exception. Unfortunately, most enterprises fail to understand the needs & preferences of their consumers and hence fade away. The sole purpose of the education sector should be the comprehensive education of children by opening the floodgates of knowledge for them.
What strategies are necessary for the survival of the edtech start-ups in the post pandemic world?
Putting their stakes on a value driven model must be the primary goal of budding start-ups to sustain and grow post-pandemic. The models should be constructed keeping in mind innovative ways to serve students with convenience and ease, to enable them to invest in the idea of it. Their aim should be to “deliver” knowledge and to do it faultlessly.
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Edtech companies need to replace out-dated systems and procedures with cutting-edge technology. As we move towards a future of lifelong literacy and cohort- grounded literacy platforms, edtech companies will need to be more creative in content delivery. It shouldn’t just be about putting intriguing material on a screen; they need to ideate about how that screen looks, what it tracks, and what it delivers. Creating an educational experience that can never be attained in a classroom is imperative if edtech companies want to stay significant in the long run.
As the value of constructive literacy and conceptual comprehensive learning becomes extensively recognised, edtech forums should evolve & initiate more innovative strategies to make their literacy forums more interactive for the youth. Stories can be used to explain the most intrinsic concepts using Virtual Reality to make it more interesting. Children can be tutored using creative methods, with their preceptors playing their favourite characters. Incorporating the metaverse within the technological aspect of education can also be explored. The virtual world anyhow intrigues children, imagine your favourite character in an embodied virtual reality experience catering to your queries in a doubt-clearing class.
Edtech companies should come up with innovative methods to cater to children of different age groups with bite- sized content, so they don’t lose interest. Short, simple, and interesting content explained in a language better understood by Gen-Z, will keep them hooked. Bringing a new commodity to the table and keeping it relatable for the students will help these companies to stay relevant in the future. The schools that invested in an edtech mode of learning with the sole purpose of maintaining a depository of learning material, assignments, test papers & many more for students of all classes to refer to, are doing exceptionally well. It was extremely convenient for the students and made the learning process easier. The schools were shut but the learning did not stop, and the methodology followed continued to add value to classroom teaching even after the schools reopened.
What are your comments on the future of the edtech space in India?
COVID-19 was a significant milestone for students, parents, and educators as it taught them about learning during a pandemic. As a result, a huge proportion of the country’s education sector migrated online. Likewise, certain aspects of the “new normal” have been inculcated into the classrooms of today. A blended or hybrid style of learning is now the crux of the best learning experience, and the edtech companies should be mindful of that.
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Especially now, that an increasing number of teachers and other educators have grown to be more digitally empowered. Now they are using cutting-edge technology within their classrooms to make learning a more engaging and interactive affair. They now have an open mind towards the benefits of digital literacy. Furthermore, the use of tech tools to specifically cater to the customised needs of each child has become quite common.
Inculcating the creative elements of edtech within the classroom setting or as a part of an after class or long-distance education program will generate more interest amongst students. If the edtech start-ups can accept this shift in mentality instead of trying to completely take over an existing framework, they will continue to grow.
Soon, virtual mentoring and training can be predicted to take over the education sector. Quality subject matter, focus, value- driven, movable and active literacy, creative ways to engage students, and the capability to publish and share a student’s work amongst the greater community, are some of the important aspects that the edtech start-ups need to consider in the post-pandemic world to sustain their businesses. Indeed, before the pandemic began to wane, some edtech companies had made the right moves. The future belongs to those who will continue to innovate while focusing on sustainability.
