Ed-tech start-ups pocket $2.2 bn in funding this year: Report

The increasing investor appetite for the sector is not surprising, given that the pandemic led to a significant increase in demand for ed-tech services. Students across the country signed up for such platforms to make up for lost school hours.

Indian ed-tech start-ups cornered a chunky $2.2 billion in funding in 2020, led by the K-12 and test preparation segments, according to a report by IVCA-PGA Labs. This is a substantial increase compared with investments worth $553 million that such companies garnered in 2019.

The increasing investor appetite for the sector is not surprising, given that the pandemic led to a significant increase in demand for ed-tech services. Students across the country signed up for such platforms to make up for lost school hours.

Byju’s alone secured over $1 billion from investors this year and is understood to be negotiating another $200 -million deal. In an interview with FE in late September, founder & CEO Byju Raveendran had mentioned that the company added more than 25 million free users in the last five months compared with just above 40 million in the first four-and-a-half years. “Students who benefited by accessing the content signed up for subscription,” the CEO had said.

The full article was originally published on Financial Express