Why Starting An Edtech Business is Profitable
Edtech startups have paved the way for students to push their limits and get out of boring learning patterns and study in a holistic way. Introducing new ways of teaching such as audio-visual lessons, interactive content and online courses, among others, edtech startups in India have totally transformed the way of teaching as well as learning.
As per a 2016 KPMG report, the Indian edtech market is pegged to touch $1.96 billion by 2021. India is home to the second-highest number of edtech companies, followed by Brazil, the United Kingdom and China.
Growing Wave of Online Education
Technology has penetrated deep into the education industry. Nowadays, it is no more a surprise to witness a smartphone in the hands of kids. Mobile apps that provide enhanced learning opportunities for school children have become mainstream. Even schools are now combining the traditional system with online education. Technology adds on to the visual experience by incorporating animations that can be used interactively for effective teaching, and communication.
Edtech apps are proving to be beneficial for parents who wish to home-school their children, in the form of online course material. Thus, starting an Edtech app will be a profitable business move.
There are numerous reasons that are fueling the edtech industry in India and are helping individuals to foray into an industry worth billions. Here are some of the reasons as to why starting an edtech business is profitable….
No Geographical Boundaries
The traditional way of acquiring education always had something to do with geographical proximity and physical presence. For instance, if we consider the erstwhile systems of Gurukula, students had to go to the villages that were far from their places and reside in them and receive education and other skills under the guidance of the gurus. Similarly, the current schooling system comprises a 6-hour stay of students in the school premises.
However, with online education and edtech startups coming into the play, the geographical boundaries and physical presence are no longer mandatory for students to acquire knowledge.
Rise of Low-Cost Mobile Phones and Internet Services
The digital penetration of low-cost mobile phones is one of the biggest catalysts of the edtech culture that is prevailing in India. Not just the penetration of low-cost mobile phones contributed to the growth of edtech startups, but low-cost internet services are also a major contributor to the industry with over 550 million people connected to the internet.
The amalgamation of both these low-cost services has given many advantages to the edtech industry, hence filling the young entrepreneurs with confidence to start off with a business.
Inducing Trust in Parents
There was a time when parents were reluctant to trust on such new ways of education for their children’s studies. Parents were convinced that nothing else in this world could teach their children better than the traditional education system. However, since technology hasn’t left any field untouched, people are willing to understand the worth of technology and becoming open to experimenting with new technologies. Therefore, they have started allowing their kids to spend time on online learning technologies, which in turn, gives a boost to the edtech industry.
No Language Barriers
As these edtech startups are taking the world by storm, they are making sure that they reach out to every student without any barrier. One of the biggest barriers to education remains language. In a multi-linguistic country like India, many of the edtech businesses come up with solutions to provide education in every language possible. In this way, edtech companies help in eradicating the biggest barrier in the way of acquiring knowledge. This is another reason that the edtech industry is witnessing such a massive growth across the country.