Is Coaching Business Profitable in India?

Is Coaching Business Profitable in India?

Is Coaching Business Profitable in India?

Do you ever wonder whether coaching is a profitable business to invest in? Well, research suggests—the market size of online tutoring services is expected to grow at a CAGR of 15.96% from 2020 to 2025, reaching USD 14.76 bn.

Also, in recent times, there has been a boost in the number of coaching classes and private tutoring. Some of them have even become brands themselves. 

Think about it: Don’t parents need a tutor that focuses on their children’s education? The competition among students is on a rise and to excel under pressure you must prepare well. And thus coaching becomes important. 

Professionals in the coaching centers are experts in their respective fields. They bring the best of knowledge to your child with the help of the latest technology and study apps. 

So if you are planning to start a coaching institution in India, read on. This blog discusses the factors contributing to the evolution of the coaching institutions that make it a profitable venture!

What Makes Coaching So Popular?

Coaching is a method to enhance the performance of students. Coaching institutions nourish students with personal tutoring and even group coaching. Here are some compelling reasons that make coaching popular:

1. Increasing Competition

India has a huge playground of students who are competing daily. And to come out on the top, they require the best possible tutoring. But this is not limited to their schooling years. 

Parents send their children to classes in advance for their future and for competitive exams. And the coaching institutions meet this demand. They are equipped to pay one-on-one attention to the students, work upon their weaknesses, and support them with personalized teaching methods if required. All of this being essential to excel in academics, parents insist on sending their children to coaching classes. 

2. Innovative Study Material 

Although most schools have adopted and incorporated technology in their teaching methods, there is only so much they can do. At present, teachers often create presentations or show videos on YouTube to explain complex concepts. This may also be due to the constraints due to the school infrastructure and academic calendar. 

This is where the coaching institutions enter. They provide exciting and creative study material to the students. These include extensive notes that are not elsewhere available on the internet or in the books, self-explanatory videos, a series of practical worksheets and even hands-on learning activities. Consequently, learning becomes easier. Furthermore, students have a 24/7 access to the video repository. As a result, they can always go back and revise if they haven't understood. 

3. Multiple Test Series

Do students require practice? Yes and what better place than an institute that prepares you well for examinations? Students are able to test their knowledge and understand mistakes through test series and training sessions. 

Most schools only hold semesters and unit tests. And while this strategy may work for students until grade 8, students of grade 9 and 10 require more training. Although schools at this point conduct pre-board exams, they are always bound by time constraints. 

Furthermore, some students need to put in more effort than others. A coaching institution makes all of this possible. It has the flexibility to arrange for test series at different points in the year to ensure that students can continuously revise the material. Furthermore, if students do not want to enrol for the entire year but only want to appear for the test series, that’s also possible. 

Investments In Edtech Startups 

Edtech startups (Coaching startups like Byju’s) have seen a total investment of $2.22 billion. And the investments are increasing by the year. Byju’s and Unacademy have raised the most capital during the COVID-19 period. Furthermore, the Edtech market is expected to grow by two times, to 225 billion USD by FY 2025. This demonstrates the demand for quality education in the country.

As technology advances, learners are given priority, which increases the demand for coaching institutions. Learning was made simpler by one-on-one contact with students and speedy problem-solving techniques. This is one of the significant reasons for the growth of edtech and coaching business in India. 


According to statistics, the global private tutoring market’s worth in 2020 stood at USD 92.59 billion. By 2028, it is expected to reach USD 171.93 billion, growing at a 8.3% CAGR. 

We see parents' desire for their children to obtain better training. And coaching can provide this. The industry is bringing more positive development to education and will continue to expand its arena, and thus, the demand for coaching institutions will grow and this would be a better time to invest.