Indian edtech sector still attractive for investors, GSV Ventures says
U.S.-based GSV invests only in edtech startups around the world and manages about $500 million in assets. In India, its two most prominent investments are in test preparation firm PhysicsWallah and LEAD, which provides digital infrastructure to schools. Both companies are valued at more than a billion dollars.
Edtech startups in India have laid off thousands of employees in the past year and have been unable to raise funding as a slowdown gripped the market. Companies that have cut staff include SoftBank-backed Unacademy, Tiger Global-backed Vedantu and Byju's - India's biggest startup valued at $22 billion.
GSV is eyeing investments in sub-sectors such as upskilling and the K12 segment - for kids from kindergarten to Grade 12 - among others, Quazzo said. It has invested about $90 million in India so far. Its U.S investments include Coursera(COUR.N) and Masterclass. Indian edtech startups raised $2.6 billion in 2022, down 36% compared to the previous year, according to data provider Tracxn Technologies.
As Per the report by Reuters dated on 20th Feb 2023
With educational institutions shut and offline learning, not an option, ed-tech companies enjoyed an unprecedented tailwind. Fuelled by an influx of money from global investors seeking a safe haven, ed-tech companies raised record-breaking amounts in 2020 and 2021. Edtech unicorns raised a total of USD 1.9 billion overall in 2020. By 2021, the industry witnessed more than a tripled increase in the funding raised by them.
By the end of 2022, the ed-tech industry at large had seen its fortunes change dramatically. Faced with a global economic slowdown, ed-tech companies have had to take drastic measures to stay afloat. This year, the mass layoffs seen at global tech giants such as Meta, Amazon, and Twitter were replicated across the sector.
Nielsen’s Bharat 2.0 Study estimates that the number of active internet users has grown by 45 percent since 2019, primarily driven by rural India coming online.
As Per the report by Financial Express dated on 21st Jan 2023
Credits: This full report is published by Financial Express
It seems that the first quarter (Q1) of 2023 has pushed cash-starved Indian startups further into a tight corner, with startup funding plummeting 75% year-on-year (YoY) across segments to $3 Bn as against $12 Bn in Q1 2022, according to Inc42’s ‘Indian Tech Startup Funding Report Q1 2023’.
The top five active startup investors (as per the number of deals) who showed their faith in the world’s third-largest startup ecosystem in the first three months of 2023 are AngelList India (47), Alteria Capital (26), Blume Ventures (20), Stride Ventures (20), and AH Ventures (19).
Venture Catalyst, founded by Dr Apporva Ranjan Sharma and Anuj Golecha, invests between $200K and $2 Mn in early-stage startups. The investments are syndicated with participation from HNIs, family offices, and CXOs.
As Per the report by INC42 dated on 15th April 2023