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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
As India’s edtech industry hits the brakes, the company finds itself caught between a rock and a hard place.
Editor's note: Vamsi Krishna rubbishes claims that Vedantu is in trouble. But, with India’s education technology sector in the doldrums and the K12 segment—kindergarten to grade 12—reaching crisis point, trouble seems to have finally reached the doors of his edtech startup. “Revenues are down drastically and Vedantu is not able to turn it around,” says an industry executive, asking not to be named. “The burn is still significantly higher. The Ai Live product, launched in April to bring down the course fee by 80% in some cases, didn’t work out. They had to cut down a lot of jobs. Salaries of teachers were also slashed across the board.” At this point, it seems Vedantu is just trying to “stay afloat”, he adds. “I wonder how long they can afford to. Already, there are talks of finding a buyer.” After growing rapidly in the pandemic years—owing to COVID-19-induced lockdowns and excess liquidity in the markets—India’s edtech sector is facing an existential crisis. With schools reopening and central banks around the world tightening monetary policy, it has been hit with a double whammy. Edtech …
As India’s edtech industry hits the brakes, the company finds itself caught between a rock and a hard place.
Editor's note: Vamsi Krishna rubbishes claims that Vedantu is in trouble. But, with India’s education technology sector in the doldrums and the K12 segment—kindergarten to grade 12—reaching crisis point, trouble seems to have finally reached the doors of his edtech startup. “Revenues are down drastically and Vedantu is not able to turn it around,” says an industry executive, asking not to be named. “The burn is still significantly higher. The Ai Live product, launched in April to bring down the course fee by 80% in some cases, didn’t work out. They had to cut down a lot of jobs. Salaries of teachers were also slashed across the board.” At this point, it seems Vedantu is just trying to “stay afloat”, he adds. “I wonder how long they can afford to. Already, there are talks of finding a buyer.” After growing rapidly in the pandemic years—owing to COVID-19-induced lockdowns and excess liquidity in the markets—India’s edtech sector is facing an existential crisis. With schools reopening and central banks around the world tightening monetary policy, it has been hit with a double whammy. Edtech …
Co-founders Alakh Pandey and Prateek Maheshwari made Physics Wallah the company it is today by keeping their focus on the digital media, test-prep business. With fresh funds at its disposal after the IPO, it is making the mistake of believing it is an education company.
For one of the world’s largest and shrewdest investors to entirely skip putting money in the country is a sign of how quickly the nature of the Indian startup ecosystem has changed.
As the company weighs a move into test prep ahead of a 2027 IPO, the question is whether entering a category from which upGrad has consciously stayed away so far makes sense.
Co-founders Alakh Pandey and Prateek Maheshwari made Physics Wallah the company it is today by keeping their focus on the digital media, test-prep business. With fresh funds at its disposal after the IPO, it is making the mistake of believing it is an education company.
For one of the world’s largest and shrewdest investors to entirely skip putting money in the country is a sign of how quickly the nature of the Indian startup ecosystem has changed.
As the company weighs a move into test prep ahead of a 2027 IPO, the question is whether entering a category from which upGrad has consciously stayed away so far makes sense.
