What is the Next big thing?6 years ago Ruchika Mathur
With 17.31 % of the world’s population (1.27 billion) and 50 % of which is constituted of people of ages between 0 years to 25 years , India can be considered a young country and is set to develop a huge education industry.
The global education market currently valued at $4.4 trillion and estimates of 23 percent growth by 2017, Of which the Indian market is estimated to be worth INR 5.9 trillion in 2014-15. India’s online education market sizeis predicted to grow to $40 billion by 2017 from the present $20 billion. After looking at these eyebrow raising figures, to comment that Education technology is on rise will be an understatement.
The internet user base has touched around 243 million in June 2014, a year-on-year growth of 28%. Of the total user base, mobile internet users accounted for 130 million in 2013, a growth of about 92% from 68 million in 2012. IAMAI (Internet and Mobile Association of India) expected the number of mobile internet users to have touched 185 million by June 2014, accounting for about 76% of the internet user base in the country. That sought internet market penetration confirms anindubitable growth of online education market in India.
While an increasing number of private institutions and start-ups are stepping in and are focussing on the area with greatest potential impact .Low-cost private education solutions for students living at the Bottom of the Pyramid (BoP) and high end technical solution for middle and upper class students.
Lohit Sahu of Phyzok learning solutions Pvt Ltd, Who has won the star entrepreneur award at the 5th BITSAA ‘Global 30 under 30’ is expecting to change the education pattern and bring innovative learning models to the existing education system. Education solution provider K2 Learning Resources, has launched TabLab, an initiative to bringeducation particularly commerce education on tablets. “We are moving faster and way beyond what we had imagined a few decades ago. The need of the hour is to offer technology solutions that add value to learning process. This is the prime motive that inspired us to come up with TabLab. As our country is known for its tech-savvy young generation, we want our education system to prosper and be more effective. It cannot get simpler than that, says Sripal Jain, Founder, K2 Learning Resources on the launch.
The education start up, has raised Rs 8 crore ($1.3 million) in angel funding from Radheshyam Agarwal, founder and director of Calcutta Tube India.
There has been a lot of investment already made in the sector. An average of $200 million a year was being invested in the Indian educational sector, which offers an attractive return on investment, about 22 per cent to 25 per cent a year. This has attracted many angle investors and seed funds to invest in the growing market of educational technology start-ups. Mumbai-based Kaizen Management Advisors Pvt Ltd the technology-focused equity investor has already invested $55 million in India.
This technological gap and the outreach of internet might be a good source of opportunity for the Education technology business in India and the investors looking for long term investment can expect high return in future with the growing market traction . The Education Technology Industry in India can be the next big thing! Watch out!!
This article is among the top five articles of the blogfest conducted during “Entrepreneurship India 2014“. It is the flagship event of Maçon – the Entrepreneurship cell of IBS Hyderabad. The event is a week long celebration to hone the entrepreneurial skills of students through guest lectures by eminent speakers, workshops and competitions. Entrepreneurship India provides a perfect platform wherein the pragmatic approach is being inculcated by providing right blend of exposure and guidance from the industry veterans such as venture capitalists, potential investors and the faculty members.