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The Problem of Oversaturation in the Indian EdTech Industry
Teachers and students have multiple EdTech tools to use in the classroom. In fact, many EdTech apps and programs serve the same purposes. Why? Because there are more than 4,500 startups in the EdTech industry, catering to more or less the same target group of students.
“Certain segments of Indian EdTech are now saturated. The market for $1,000 online K-12 tutoring courses or test prep is crowded, with Byju’s, Unacademy, and Vedantu dominating. To find new revenue streams and to fuel growth, they need to add offerings,” said Wani of GSV Ventures.
Byju's has achieved this through the mergers and acquisitions of Epic, Aakash, and Great Learning. Unacademy and many other players have made such moves too. But how does one curb oversaturation in the industry? Let’s find out!
How To Curb Oversaturation?
To help combat EdTech oversaturation, EdTech companies can focus on untapped opportunities and introduce innovative solutions, creating value for users. They can focus on other vital areas to strike a balance. For instance, impressive learning outcomes, improved reach to education, and strategic use of EdTech tools are some key focus areas to balance the EdTech market.
Following are some more ways EdTech companies and school leaders can combat the problem of the oversaturated industry:
Democratizing Access to Education
“Online complements offline really well, and together as a package, the omnichannel model is going to steer and be here for a long period of time,” says GV Ravishankar, managing director, Sequoia India, a venture capital firm.
Online-first EdTech companies can tap into adjacent markets to increase their potential user base. Thus generating new customer value and new demand. The companies can reinvent themselves by moving to a hybrid model.
According to a PWC report, 87% of the Indian population lives in Tier-2 cities and beyond. So, EdTech players can establish a significant presence in these underpenetrated cities if they provide multilingual, personalized content.
More specifically, they can serve students from Tier-2 regions, including those in cities that draw students preparing for competitive exams. They can also compete or collaborate with region-specific brands, such as Rau’s IAS Study Circle in Delhi or Mahesh Tutorials in Mumbai.
For example, Byju’s acquiring Aakash was part of a long-term strategy. Aakash, which has more than 200 physical locations and enrolls 2.5 lakh students, can assist Byju in reaching tier-2 cities. Its recently unveiled BYJU'S Tuition Center combines classroom and online study in 200 cities.
Likewise, upGrad entered the test preparation industry and acquired The Gate Academy, which has 50 locations across India. Rebranded as ‘upGrad Jeet,' it will target Hindi-speaking, mid-level government job aspirants of small towns.
Apart from increasing the user base, an offline presence can help attract parents from tier-2 and beyond cities belonging to low-income and middle-income groups. These parents may have seen the company’s TV or online ads but usually are skeptical of an all-digital approach to education.
Promote Rural Reach
The term "Digital Divide" became quite well-known during the pandemic. Many children in rural areas weren’t able to participate in the learning process primarily due to a lack of access to high-quality educational material and digital devices.
EdTech can make access to great learning material and excellent teachers more straightforward and affordable, especially in rural locations. But to do that, they will need to put themselves in the shoes of a rural school teacher and comprehend what an under-resourced rural school in the remotest areas could be — usually, one or a few multi-grade classrooms without a roof or a fan!
EdTech companies for low-income communities can produce short content in local languages that even hardly educated parents can understand. Instead of expensive toys or gadgets, the study material can instruct and interest children with everyday objects. The companies can even collaborate with the government so that parents respond to their effort more seriously.
In fact, a few EdTech companies are beginning to target rural India as a market for their products. Rocket Learning makes a good case in point. Currently working in Maharashtra, Uttar Pradesh, and Haryana, Rocket Learning reaches nearly 100,000 children and 8,000 teachers, delivering content in Hindi and Marathi. It works with the state governments to facilitate school and Anganwadi teachers to create WhatsApp groups for their classes to ensure smooth content delivery and ample reach.
Personalized and Engaging Content
Education is vast, and its dynamics highly differ from place to place and student to student. So, most EdTech solutions offered might not appeal to every child equally.
EdTech players can offer tailored solutions in native languages with familiar, localized examples that make sense for learners. Their products should address different learning abilities, such as delivering content through voiceovers for students unable to read the text.
Moreover, a student's learning style should be considered when developing content. An interactive content strategy is more likely to be successful. Artificial intelligence and machine learning can personalize content according to students’ needs and abilities.
Gamification is one method for increasing student engagement by presenting stories and creating characters that students find relatable, with elements like point scoring, peer competition, teamwork, and progress indicators.
What Might Be in Store for the EdTech Industry?
Wading through the sea of oversaturation, EdTech players in the industry must explore and focus on untapped areas, including offline centers, low-income groups, rural areas, and tier-2 cities. EdTech players can capitalize on tremendous opportunities at the bottom of the pyramid if they recognize the constraints and offer the right solutions.
With these efforts, the industry can reach higher levels, widen its reach, and stay relevant to the changing landscape. The opportunities are tremendous. All they need to do is knock on the right doors.