Edtech firms raised $278 million in the first nine months of 2024, according to statistics collated by Inc42. This represents a meager 3% increase from the $269 million raised in the same period the previous year.

Of the overall edtech funding raised in the first three quarters of 2024, PhysicsWallah alone brought about $210 million. Without PW, there was an almost 75% decrease in Indian edtech financing in the first nine months of the year. YoY

During the quarter ended just before, the Indian edtech sector was not able to secure a spot on the list of the top 10 most funded startup sectors.

While several sectors profited greatly from the funding season of 2021–2022, the Indian edtech industry ended up being the key successor when the widespread brought the entire world to its umbrella.

Digital learning became possible as a result of the forced closure of colleges and schools, and techies began to swarm to meet the growing demand for online education. Not to add, the edtech growth narrative in India was further fueled by the workforce's increasing desire for skill development in the tech and IT-related businesses.

Due to this, the Indian edtech industry received $4.7 billion in funding in 2021, making it the third most funded sector overall, behind only fintech ($8 billion) and ecommerce ($10.7 billion). Actually, just in 2022, edtech raised $2.4 billion. The magnitude was such that the $11 billion the sector raised between 2014 and 2024 was largely comprised of these two years.

However, when the world reopened to regular commerce, the industry insiders were faced with unexpected problems. Demand for online learning leveled off as traditional schools reopened, highlighting weaknesses in edtech's economic models and long-term viability. The outcomes were evident right away. In 2023, edtech startup funding fell 88% year over year to $283 million.

A great deal of financing was cut off, and many skeletons began to come out of the closet. For starters, many firms found themselves struggling with unfinished playbooks as their runways ended because investors tightened their budgets. This resulted in closures, layoffs, and other things.

The sector's problems intensified when BYJU'S, the largest edtech in the nation, began to stumble from its position as the poster child for India's edtech development to becoming entangled in back-to-back scandals. Furthermore, we are aware of how the once-promising edtech decacorn's fortunes have changed since then, particularly in 2024.