Chapter 1

Introduction

Educational technology in way could be traced back to the emergence of very early tools, e.g.,
paintings on cave walls. But usually its history is made to start with educational film (1900's)
or Sidney Pressey's mechanical teaching machines in the 1920'.
First large-scale usage of new technologies can be traced to US WWII training of soldiers
through training films and other mediated materials. Today, presentation-based technology,
based on the idea that people can learn contents trough aural and visual reception, exists in
many forms, e.g., streaming audio and video, PowerPoint presentations + voice-over. Another
interesting invention of the 1940's was hypertext, i.e., V. Bush's memex.
The 1950's led to two major still popular designs. Skinners work led to "programmed
instruction" focusing on the formulation of behavioral objectives, breaking instructional
content into small units and rewarding correct responses early and often. Advocating a mastery
approach to learning based on his taxonomy of intellectual behaviors, Bloom endorsed
instructional techniques that varied both instruction and time according to learner requirements.
Models based on these designs were usually referred to as computer-based training" (CBT),
Computer-aided instruction or computer-assisted instruction (CAI) in the 1970's through the
1990's. In a more simplified form they correspond to today's "e-contents" that often form the
core of "e-learning" set-ups, sometimes also referred to as web-based training (WBT) or e-
instruction. The course designer divides learning contents into smaller chunks of text
augmented with graphics and multimedia presentation. Frequent Multiple-Choice questions
with immediate feedback are added for self-assessment and guidance. Such e-contents can rely
on standards defined by IMS, ADL/Scorm and IEEE.
The 1980's and 1990's produced a variety of schools that can be put under the umbrella of the
label Computer-based learning (CBL). Frequently based on constructivist and cognitivist
learning theories, these environments focused on teaching both abstract and domain-specific
problem solving. Preferred technologies were micro-worlds (computer environments were
learners could explore and build), simulations (computer environments where learner can play
with parameters of dynamic systems) and hypertext.
Digitized communication and networking in education started in the mid-80s and became
popular by the mid-90's, in particular through the World-Wide Web (WWW), email and
Forums. There is a difference between two major forms of online learning. The earlier type,
based on either Computer Based Training (CBT) or Computer-based learning (CBL), focused
on the interaction between the student and computer drills plus tutorials on one hand or micro-
worlds and simulations on the other. Both can be delivered today over the WWW. Today, the
prevailing paradigm in the regular school system is Computer-mediated communication
(CMC), where the primary form of interaction is between students and instructors, mediated
by the computer. CBT/CBL usually means individualized (self-study) learning, while CMC
involves teacher/tutor facilitation and requires scenarization of flexible learning activities. In
addition, modern ICT provides education with tools for sustaining learning communities and

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associated knowledge management tasks. It also provides tools for student and curriculum
management.
In addition to classroom enhancement, learning technologies also play a major role in full-time
distance teaching. While most quality offers still rely on paper, videos and occasional
CBT/CBL materials, there is increased use of e-tutoring through forums, instant messaging,
video-conferencing etc. Courses addressed to smaller groups frequently use blended or hybrid
designs that mix presence courses (usually in the beginning and at the end of a module) with
distance activities and use various pedagogical styles (e.g., drill & practise, exercises, projects,
etc.).
The 2000's emergence of multiple mobile and ubiquitous technologies gave a new impulse to
situated learning theories favouring learning-in-context scenarios. Some literature uses the
concept of integrated learning to describe blended learning scenarios that integrate both school
and authentic (e.g., workplace) settings. Web services, both educational and non-educational
gain popularity.
The 2010's include MOOCs, a consolidation of rapid eLearning in business, a return of a type
of simulations through serious gaming and a technical trend towards delivery with HTML5 (as
opposed to proprietary solutions). Non-educational on-line applications are main-stream now,
e.g. shared office applications, note pads, ang various instant messaging applications. In
addition, there is a lot of noise about learning analytics and statistical AI to analyze the data.
Other topics like PLE or educational badges don't have much success. Simple content delivery
and simple student management and assessment tools are still king as demonstrated by the
(UK-based) Association for Learning Technology Annual Surveys.
See also the very complete (until the early 2000s) History of virtual learning environments on
Wikipedia or the more recent the 25 Years of Ed Tech blog posts by Martin Weller.
Many topics fade in and out over longer cycle (typically about 15 years), e.g. technology can
lower costs, intelligent tutoring, adaptive systems, individual learning, student data to improve
education. Some authors talk about "Zombie" ideas “The zombie idea that is rapidly being
converted into policies that in the past have been “refuted with evidence but refuse to die” is:
new technologies can cure K-12 and higher education problems of teaching and learning.”
(Larry Cuban on School Reform and Classroom Practice (2012, retrieved April 2019).
Technology-driven learning is bringing a qualitative and quantitative difference to education.
India has an enormous appetite for quality education and the introduction of online learning
has changed the scenario of the Indian educational system, with its reach and economical
access. Technology and education together are changing the face of global learning. With an
overwhelming increase in mobile-connected devices, global data traffic and mobile video
traffic, the EduTech sector is set to enter a new era. Now we can access knowledge online to
keep pace with the latest developments. EduTech companies are driving further development
of data-driven education technologies, leading to fundamental changes in how school and
college students as well as professionals seeking new skills are learning.
In India, where mobile penetration is counting a billion people with over 300 million connected
to the internet and is expected to reach 550 million by 2018, we have immense potential to
digitally educate the masses. In fact, the past few years have seen a substantial rise in digital
and live online interactive platforms at different levels of learning. With the evolution of

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technologies such as cloud computing, data centers and virtualization and its integration with
the education industry, education and coaching institutions are witnessing a rapid rise in
enrolments and added revenue.
Live Interactivity with professors or academicians, World Class Learning Pedagogy and High-
Quality Content are the new buzzwords. Getting instructions from specialized instructors
through live broadcasts at home or attending the recorded lectures increases students’
involvement and learning at higher levels of education. Video Content delivery, student-to-
student interactions via video conferencing and virtual updating of textbooks are some of the
unique advantages of digital learning that provide personalized attention to all students.
Video based learning also has an enormous potential to make any communication and
information based activity more immersive and experiential. These technologies have the
ability to take students out of the confines of the classrooms and engage them in different ways
and methods.
Going offline is yet another digital innovation in our education system which allows students
to access content offline or even in internet connectivity as low as 100 kbps. Learning is
bringing a qualitative difference to education in rural and semi-urban areas of India. Although
rural India has woken up to the online learning trend quite late because of the lack of a stronger
mindset in smaller towns and infrastructural challenges, this issue has been gradually resolved.
From mobile classrooms to online tutors, today there are hundreds of such startups passionate
about transforming the education system in our country.
In the expanding digital age, the world is mirroring these scenarios, and the demand for quality
education through digital platforms is increasing around the globe. The two important aspects,
i.e. reach & accessibility to quality education through digital platforms has also given a boost
to cross-border and cross-country learning. Among Indian students especially in Gulf countries
for instance, we have witnessed significant growth in demand and acceptance for digital
learning.
Technology intervention also bridges the gap in tier 2 and tier 3 cities giving them access to
the best possible learning resources from across the world, at a very affordable price. The
developing wave of adaptive learning facilitates the students with various levels of intellectual
capabilities to garner vital skills at their own pace. Numerous coaching centres have also started
developing quality study material that can be disseminated on an online platform. This is
increasing the success ratio of people learning on online platforms exponentially
Considering the juggernaut of technological advancement in Educational technology or
EduTech, we are witnessing 2017 to be a year full of innovative methods of imparting
education. Technological revolution in student-teacher interface in the form of mobile learning
is also generating great realism in a simulated environment. Mobile learning has encouraged
‘anywhere, anytime’ learning and has allowed students to gather, access, and process
information outside the classroom.
Mobile learning has not only encouraged learning in a real-world context, but has also helped
to bridge the gap between after school and home environments. A country that depends on the
development of its educational sector for its economic and social growth, a surge in switching
to technology-driven education will amply propel rural India towards empowerment.

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Educational technology is an inclusive term for both the material tools and the theoretical
foundations for supporting learning and teaching. Educational technology is not restricted to
high technology but is anything that enhances classroom learning in the utilization of blended,
face to face, or online learning.
An educational technologist is someone who is trained in the field of educational technology.
Educational technologists try to analyze, design, develop, implement, and evaluate process and
tools to enhance learning. While the term educational technologist is used primarily in the
United States, learning technologist is synonymous and used in the UK as well as Canada.
Modern electronic educational technology is an important part of society today. Educational
technology encompasses e-learning, instructional technology, information and communication
technology (ICT) in education, EdTech, learning technology, multimedia learning, technology-
enhanced learning (TEL), computer-based instruction (CBI), computer managed instruction,
computer-based training (CBT), computer-assisted instruction or computer-aided instruction
(CAI),[10] internet-based training (IBT), flexible learning, web-based training (WBT), online
education, digital educational collaboration, distributed learning, computer-mediated
communication, cyber-learning, and multi-modal instruction, virtual education, personal
learning environments, networked learning, virtual learning environments (VLE) (which are
also called learning platforms), m-learning, ubiquitous learning and digital education.
Each of these numerous terms has had its advocates, who point up potential distinctive features.
However, many terms and concepts in educational technology have been defined nebulously;
for example, Fiedler's review of the literature found a complete lack agreement of the
components of a personal learning environment. Moreover, Moore saw these terminologies as
emphasizing particular features such as digitization approaches, components or delivery
methods rather than being fundamentally dissimilar in concept or principle. For example, m-
learning emphasizes mobility, which allows for altered timing, location, accessibility and
context of learning; nevertheless, its purpose and conceptual principles are those of educational
technology.
In practice, as technology has advanced, the particular "narrowly defined" terminological
aspect that was initially emphasized by name has blended into the general field of educational
technology. Initially, "virtual learning" as narrowly defined in a semantic sense implied
entering an environmental simulation within a virtual world, for example in treating
posttraumatic stress disorder (PTSD). In practice, a "virtual education course" refers to any
instructional course in which all, or at least a significant portion, is delivered by the Internet.
"Virtual" is used in that broader way to describe a course that is not taught in a classroom face-
to-face but through a substitute mode that can conceptually be associated "virtually" with
classroom teaching, which means that people do not have to go to the physical classroom to
learn. Accordingly, virtual education refers to a form of distance learning in which course
content is delivered by various methods such as course management applications, multimedia
resources, and videoconferencing. Virtual education and simulated learning opportunities, such
as games or dissections, offer opportunities for students to connect classroom content to
authentic situations.
Educational content, pervasively embedded in objects, is all around the learner, who may not
even be conscious of the learning process. The combination of adaptive learning, using an
individualized interface and materials, which accommodate to an individual, who thus receives

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personally differentiated instruction, with ubiquitous access to digital resources and learning
opportunities in a range of places and at various times, has been termed smart learning.Smart
learning is a component of the smart city concept.
Computer-supported collaborative learning
Computer-supported collaborative learning (CSCL) uses instructional methods designed to
encourage or require students to work together on learning tasks, allowing social learning.
CSCL is similar in concept to the terminology, "e-learning 2.0" and "networked collaborative
learning" (NCL).With Web 2.0 advances, sharing information between multiple people in a
network has become much easier and use has increased. One of the main reasons for its usage
states that it is "a breeding ground for creative and engaging educational endeavors." Learning
takes place through conversations about content and grounded interaction about problems and
actions. This collaborative learning differs from instruction in which the instructor is the
principal source of knowledge and skills. The neologism "e-learning 1.0" refers to direct
instruction used in early computer-based learning and training systems (CBL). In contrast to
that linear delivery of content, often directly from the instructor's material, CSCL uses social
software such as blogs, social media, wikis, podcasts, cloud-based document portals, and
discussion groups and virtual worlds. This phenomenon has been referred to as Long Tail
Learning.Advocates of social learning claim that one of the best ways to learn something is to
teach it to others. Social networks have been used to foster online learning communities around
subjects as diverse as test preparation and language education. mobile-assisted language
learning (MALL) is the use of handheld computers or cell phones to assist in language learning.
Collaborative apps allow students and teachers to interact while studying. Apps are designed
after games, which provide a fun way to revise. When the experience is enjoyable the students
become more engaged. Games also usually come with a sense of progression, which can help
keep students motivated and consistent while trying to improve.
Classroom 2.0 refers to online multi-user virtual environments (MUVEs) that connect schools
across geographical frontiers. Known as "eTwinning", computer-supported collaborative
learning (CSCL) allows learners in one school to communicate with learners in another that
they would not get to know otherwise, enhancing educational outcomes and cultural
integration.
Further, many researchers distinguish between collaborative and cooperative approaches to
group learning. For example, Roschelle and Teasley (1995) argue that "cooperation is
accomplished by the division of labour among participants, as an activity where each person is
responsible for a portion of the problem solving", in contrast with collaboration that involves
the "mutual engagement of participants in a coordinated effort to solve the problem together."

5
 Company Profile

Toppr was founded in 2013. In April 2015, Toppr acquired Jodhpur-based Easy Prep – an
online platform to help students prepare for entrance exams. In February 2016, Toppr went on
to acquire ‘Manch’ - a knowledge delivery platform.
Toppr is a product of Toppr Technologies Private Limited. It was co-founded by Zishaan
Hayath and Hemanth Goteti, alumni of IIT Bombay. It is a learning app for students studying
in classes 5th to 12th or students appearing for entrance exams and scholarship exams. As of
December 2017, Toppr has a user base of 2.5 million. The content on the app is available in
English and Hindi.
Toppr Technologies Private Limited incorporated on 02 April 2013. It is classified as Non-
govt company and is registered at Registrar of Companies, Mumbai. Its authorized share capital
is Rs. 4,363,985 and its paid up capital is Rs. 4,021,447. It is inolved in Other education.
Toppr Technologies Private Limited's Annual General Meeting (AGM) was last held on 29
September 2018 and as per records from Ministry of Corporate Affairs (MCA), its balance
sheet was last filed on 31 March 2018.
Directors of Toppr Technologies Private Limited are Alok Goel, Aditya Gurunath Systla,
Rahul Chandra, Zishaan Mohammed Hayath, Hemanth Goteti, Nirav Avinashbhai Khambhati.
Toppr Technologies Private Limited's Corporate Identification Number is (CIN)
U80904MH2013PTC241592 and its registration number is 241592.Its Email address is
finance@toppr.com and its registered address is A 204, Supreme Business Park, Hiranandani,
Powai Mumbai Mumbai City MH 400076 IN.
At Toppr, students are at the centre of our universe. Toppr believe that every student is different
and has different learning needs. Toppr work relentlessly to solve student problems using
advanced technology and help them learn better. We have thoughtfully designed Toppr to
ensure that it is a one-stop after-school learning platform. It has more than 1.5 million learning
pieces, including adaptive practice questions, solutions, concepts, and videos that come
together seamlessly to give 360° learning. We use artificial intelligence-based machine
learning algorithms on top of this strong infrastructure, to create personalised learning paths
for millions of students.
Toppr: India's #1 JEE Main/Advanced & NEET Learning Platform offers a variety of learning
resources in the form of video tutorials, a chance to have an online chat session with expert
professors, performance reporting, feedback and scheduled test series among other features.
Websites like this have made learning much easier than it was earlier.
Furthermore, these platforms also offer mobile apps that make it easy to learn on the go while
we are commuting or when in search of a break from the same old study table. You will be able
to assess where you stand from a national perspective and work harder on areas that you find
challenging, eventually allowing you to perfect well next year in your medical exam.

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CIN : U80904MH2013PTC241592
Company Name : TOPPR TECHNOLOGIES PRIVATE LIMITED
Company Status : Active
RoC : RoC-Mumbai
Registration Number : 241592
Company Category : Company limited by Shares
Company Sub Category : Non-govt company
Class of Company : Private
Date of Incorporation : 02 April 2013
Age of Company : 6 years, 6 month, 13 days
Share Capital:
Authorised Capital : ₹4,363,985
Paid up capital : ₹4,021,447

As on date,6 Directors and 0 Signatories are associated with the company. The company had 2
Directors in the past, who have already resigned, on various dates.
There are no directors in this company who are 'Disqualified by ROC u/s 164(2)' or 'DIN is
deactivated due to non-filing of DIR-3 KYC form', as everyone filed their KYC promptly.
The total registered charges of company stand at ₹63,50,00,000.00 (₹63.50 Cr) (3 Charges) out
of which, charges amounting ₹55.50 Cr (2 Charges) are still open and ₹8.00 Cr (1 Charge) are
Satisfied and Closed. Overall, MILESTONE TRUSTEESHIP SERVICES PRIVATE
LIMITED holds highest open charge, amounting ₹40,00,00,000.00 (₹40.00 Cr)
The website of the company is www.toppr.com. As per MCA records, company is registered
at A 204; Supreme Business Park; Hiranandani; Powai Mumbai City MH 400076 IN.

Funding
On May 9, 2013, Toppr raised angel funding worth $200,000. In May, 2014, the start-up
received funding of Rs. 12 crores ($2 million) from SAIF Partners and Helion Ventures. In
May, 2015 Toppr raised INR 65 Cr. from their existing investors: SAIF Partners and Helion
Ventures, along with, FIL Capital Management. During the latest round of funding on 23
October 2017 Toppr raised Rs. 45 crores.

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Awards and Recognitions:
Toppr has won the following awards;
2017 - Awarded the Best Educational Website by India Digital Awards [IAMAI].
2016 - 2017 - Awarded the Best Educational Website (emerging) by AWS Mobility.
2015 - Recognized as one of the Top 10 Hottest Start-ups by CB Insights.

Toppr app features:

 Online Classes
Watch short Video Classes to learn new concepts, attend Live Classes to interact with tutors,
flip through Stories and read Concepts to revise and strengthen your basics. Whether you’re
starting a new chapter or revising an old one, we’ve got you covered!
 Adaptive Practice
Adaptive practice ensures that you start off at a level that’s best suited to you, and gives you
questions so that you can achieve your unique learning goals. With the right questions at the
right time, you don’t have to worry about your practice.
 Mock Tests
Solve previous year papers, attempt all India level mock tests, or create one on your own and
challenge your friends. From creating exam strategies to polishing your weak subjects, mock
tests on Toppr help you be exam ready in every way.
 Live Doubts
Stuck with a doubt in the middle of the night? You can get it resolved instantly, 24x7. Simply
upload a picture, or type it into the Doubts on Chat app. Our team of experts will solve it and
help you until you completely understand it, no matter how difficult it may be!
 Live Classes
Learn from India's best teachers and clear your doubts in real time. Schedule timely reminders
and study in the comfort of your home. Learn and compete with other students in real time.

Toppr Values:
 Customer Happiness
Make a positive difference in the lives of our students
 Integrity
Maintain transparency in our processes and commitments

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  Relentlessness
Set ambitious targets and work hard towards achieving them
 Speed
Do today, what we could do tomorrow
 Innovation
Reform the oldest industry and find better ways to do it
 Efficiency
Find quick and smart solutions to meet our goals
 Excellence
With every milestone, aim higher and strive to achieve it
 Empathy
Keep students first by putting ourselves in their shoes
 Nurturing
Grow by investing in people
 Openness
Do it like it should be done, tell it as it should be told

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 Report on work profile
Activities carried out by the student in the company
Junior Academic consultant(trainee)
 Generating leads
 Identifying the potential customers using the leads
 Fixing demo
 Visiting the place as per their request
 Conducting a session
 Creating a need
 Giving a demo
 Closing the case with revenue

Generating leads:
A lead is usually allotted to an individual to follow up on. Once the individual reviews and
qualifies it to have potential business, the lead gets converted to an opportunity for a business.
The opportunity then has to undergo multiple sales stages before the deal is won.
Online lead generation:
Online lead generation is an Internet marketing team that refers to the generation of prospective
consumer interest or inquiry into a business' products or services through the Internet. Leads,
also known as contacts, can be generated for a variety of purposes: list building, e-newsletter
list acquisition, building out reward programs, loyalty programs or for other member
acquisition programs.
 Social media:
With the rise of social networking websites, social media is used by organizations and
individuals to generate leads or gain business opportunities. Many companies actively
participate on social networks including LinkedIn, Twitter and Facebook to find talent pools
or market their new products and services.
 Email Marketing:
Email remains one of the main ways that businesses communicate with clients & vendors.
Because of this, marketers often send messages to users’ inboxes. Many leads are generated
every day with cold email campaigns and warm email campaigns. For the foreseeable future
email campaigns remain a great email marketing tool.
 Co-registration advertising:
The advertiser receives some or all of the standard fields collected by a site during the site's
registration process.

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Identifying the potential customers using the leads:
Business from potential customers who have had no prior contact with the salesperson
conducting the call. It is an attempt to convince potential customers to purchase either the
salesperson's product or service. Generally, it is referred as an over-the-phone process, making
it a source of telemarketing, but can also be done in-person by door-to-door salespeople.
During initiating the call, it is mandatory to collect student information as well as parent income
in order to know the customer well before counselling at the door.
Fixing demo:
After initiating the call, it is the academic counsellor work to go to the customers house in order
to give the counselling to the student as well as parent.
The salesperson has to collect the information in the beginning and then he should go for a
counselling. Later onward he should explain the product with the help of the laptop which
would be clearer in order to understand the things. Explaining about the features as well the
pros and cons out of it.
When it comes to the bargaining of the product, immediately the consultant should not go for
the discount. He should wait for the things happening around him in order to grab the sale.
Visiting the place as per their request:
As per the customer convenience we visit the customers house. Before the leaving the office,
we have to make a conformation call so that it should not go waste.
In most of the cases the house will locked or there will be relatives at their home so it is
necessary to call before we leave. And another conformation call will be given when we reach
the nearest location, so that it should not be uncomfortable to the customer in order to invite
us. We visit Saturday and Sunday the most where we find the parent as well as student to free
at their home.
Conducting a session:
After visiting to the house, it is next to counselling the student as well as the parents. Here the
parent and student both are focused in order to get the sale. Before the counselling starts, we
have to get in touch with the family member and their business or job.
Counselling of student is done with their study (E.g.: which is your toughest subject).
Counsellor should come with solution for each and every question where student is facing a
problem, and solution should be a product. Counsellor should also teach how to overcome with
that and which would be more in the favour of customer as well as the company. Counselling
the parents is also necessary in order to know the financial income of the house.

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Creating a need:
During the counselling session the counsellor has to know what the customer is needed. This
can only be done by good counselling. If the student wants to pursue medical in future then the
customer has to be given such counselling where they can pitch the customer with related
product.
Creating a need is necessary to know the customer the benefit out of it. Which would create a
enormous change out of it.

Giving a Demo:
Demo of the product in necessary to show the customer how the product work. Counsellor
should ask the customer to use it and ask for the review which will help the counsellor to
identify the problems faced by the customer.
Thus, demo is very much helpful in getting the review from the customer and will be able to
convenience the customer how their product differs from other.

Closing the case with the revenue:

Usually we should not start with the pricing of the product it may look odd. It would be much
better if customer comes with that.
We should not talk about the discount in the beginning it self which may lose the product
quality and the brand fame. We should always take time to speak about the offers.
There are many ways of payment and he can break the amount. There is Bajaj financer which
would help the eligible customer to offer the emi option.

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 Expectations set and achievement (targets achieved) during the program
I was expected to call more than 30 leads in a day out of which I has to find out minimum of 5
potential customer. After identifying the potential customer, it was to fixing up the demo.
Where out of 5 potential customer min 2 customer to get the demo fixed in a day. The target
for the week to close minimum of 3 deals.

Learning from each of the tasks carried out

Direct sale to customer
 You can explain and even demonstrate complex products
 It's convenient for the customer and easy to bring in other individuals who need to be
involved
 You can learn more about what the customer wants
 You can build a personal relationship
 You can use your selling skills to convince the customer to buy

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14
 Study on the revenue generated by EduTech companies
Online Education Market in India To Touch $1.96 Bn by 2021 – Decoding the Impact on
EdTech Startups. Paid User Base in EduTech Will Grow 6X from 1.6 Mn in 2016 To 9.6 Mn
in 2021.

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Online education in India will see approximately 8x growth in the next five years, says a recent
report by Google, KPMG. This will have a significant impact on the edtech market that has a
potential to touch $1.96 Bn by 2021 from where it stands now i.e. $247 Mn.

Traditional education systems (such as classrooms, tuitions) are slowly losing their importance
as both students and educators embrace what edtech startups offer – convenience,
personalisation, and agility. Then, we have newer concepts such as massively open online
courses gaining popularity amongst students and working professionals, alike. To this end,
edtech startups too are making their presence felt in the $100 Bn Indian education sector,
according to IBEF.

We at Inc42 reached out to a few investors and startup founders to answer these queries for
us. Along with decoding the trends and facts mentioned in the Google-KPMG report shared
with Inc42, we have tried to give you a quick overall view of the Indian edtech sector as it
stands now.

Existing Business Models and Revenue Models in Edtech

The current user base for online education industry in India largely consists of school students
and working professionals. Some startups are providing standardised offerings in the form of
test preparation content and K-12 learning courses. Then there are startups that are offering
skill-based education, and finally, the ones that bring on innovative and new models on deck.

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Primarily, there are five business models/categories which are growing at a rapid pace in the
edtech sector in India taking online education to the next level. These include primary and
secondary supplement education, test preparation, reskilling and online certifications, higher
education and language, and casual learning.

Market Size 2016

17%

38%
13%

30%
2%

Reskilling and online certifications Language and casual learning

Primary and Secondary supplemental education Higher education
Test preparation

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 Market size 2021

26% 23%

1%

9%

39%

Reskilling and online certification Langauge and casual learning

Primary and Secondary supplement education Higher education
Teat preparations

From a Monetation point of view, edtech startups in India have gained pace. Not only investors
but the number of parents believing in online tutorials has also seen an upward growth. The
recent BYJU’s TV advertisement best describes this. The ad showcases the
acceptance of parents when they watch their wards learning concepts on the mobile
with BYJU’s app.

If we go by facts, the Google-KPMG report states that it is expected that the paid user base will
grow 6X from 1.6 Mn users in 2016 to 9.6 Mn users in 2021. The report also revealed that 44%
of online education searches are now coming from beyond the top six metros and there has
been a 4X growth in education content consumption on YouTube in the last one year.

In line with below-mentioned revenue models, reskilling and online certification has the
maximum paid users – approximately 499K, as per the report. The reason being that this
segment is led by working IT professionals, with an eye to enhance their key skills without
having to dedicate specific learning hours.

In line with below-mentioned revenue models, reskilling and online certification has the
maximum paid users – approximately 499K, as per the report. The reason being that this
segment is led by working IT professionals, with an eye to enhance their key skills without
having to dedicate specific learning hours.

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19
 Key Factors Leading to Growth of Online Education

India is a country of Vedas and Puranas. There were times when education meant spending
one’s entire childhood with the gurus in their ashrams. In the 21st century, this scenario has
changed drastically and for the better.

With the growing smartphone users, Internet penetration more than 900 startups in edtech have
managed to come up in the past two years. There are a few other factors responsible for the
spurt in online education in the country.

 Low Cost

As mentioned in the report, online courses offer a low-cost alternative (INR 15K-INR 20K)
against the high cost (INR 8 Lakh – INR 10 Lakh) courses from private colleges or institutes
in streams such as engineering, medical and commerce & arts. Online education is also a boon
in disguise for areas where quality offline education is at an all-time low.

 Convenience, Flexibility, And Personalisation

Nitin Bawankule, Industry Director, Google India believes that the perceived convenience
increased reach and personalisation offered by online channels are playing a key role in the
adoption of online education in India. He further added,

“It is also interesting to note, that high growth in education search queries is now coming in
from Tier II and III cities such as Patna, Guwahati, Aligarh, and Kota – which points to the
opportunities that growing penetration of smartphones and improving quality of Internet have
opened up.”

With regard to students, the report cites that flexibility with commencement dates and variety
of study material available are the key motivational factors leading to online channel adoption.
Also, they consider peers and Internet search as the top two sources of brand awareness and
indicate a quality of course content as the top reason for selecting a specific brand.

However, it has been seen that adoption in this category is much higher among Science students
in the higher secondary. These students prefer quality supplementary content to aid them in
preparation for competitive exams, in addition to the school curriculum. Commerce/Arts
students adopting online courses are relatively lower on account of limited content availability.

 Increased Internet Penetration

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As per the report, India has witnessed a significant increase in the total Internet user population
from 2011 to 2016, with overall Internet penetration of 31% in 2016. Approximately 409 Mn
Internet users are expected to grow to approximately 735 Mn by 2021, supported by the
exponential rise of smartphone users that reached around 290 Mn in 2016.

According to Kae Capital’s Venture Partner, Shubhankar Bhattacharya, rising incomes,

consumerism, and a gradual shift to urban living implies that more and more of the masses seek
better and alternative modes of learning – to write a specific competitive exam, to improve
their job prospects and clear interviews, for the future of their children, and to perform better
at work. He further added,

The fact that smartphones and mobile data are becoming even more mainstream and there is
growing familiarity with online payments, suggests that a very significant proportion of the
audience will adopt or switch to a new-age learning mode.

Also, with nearly 46% of the Indian population in the age group of 15-40, the rising middle-
class population is also playing a key role in the growth of this sector.

 Technology: Emerging Growth Driver

As shared in an official statement, Sreedhar Prasad, Partner, KPMG India believes that the
emergence of hybrid learning channels, the continuous need for working professionals to learn

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new skills as well as the emergence of technologies such as big data and artificial intelligence
is enabling online education vendors to design customised content.

As Toppr founder Zishaan Hayath stated in a recent Inc42 post, “By leveraging evolved
multimedia formats, platforms are allowing students to grasp academic concepts better. The
use of machine learning and artificial intelligence gives them the ability to adopt a personalised
approach that considers individual unique learning patterns to further enhance a student’s
learning experience.”

He also added that by leveraging technology, adaptive practise sessions assess students’
strengths and weaknesses for each particular topic, to give them an efficient way to progress in
their academics.

Furthermore, Gartner had earlier predicted that there will be nearly 21 Bn connected things all
over the world by the year 2020. This number has been raised to 30 Bn by ABI Research.
Beas Dev Ralhan, the founder of Next Education is a big supporter of Internet of Things and
believes it to have enough potential to cause major disruption in the education sector.
“Interactive boards and digital highlighters are among the latest devices related to the IoT in
the field of education. Similarly, digital scanners aid the learning experience by digitally
transferring text to smartphones. Radio-frequency identification (RFID) chips are finding
applications in students-related research projects while QR codes are helping to access
additional knowledge resources,” he cited while giving examples of IoT usage in education.
In the coming years, it is expected that gamification will be on the rise with edtech startups
adopting simulation of concepts to enhance key work skills of professionals or imbibing
interest and a better understanding of monotonous subjects like History, Geography or even
Science in a better manner.
The report also suggests that consumption of content will evolve through the use of
technologies like wearable devices and virtual labs including data storage on clouds to enable
flexibility of accessing it anywhere, anytime – taking online education to the next level.
Funding Trends in Edtech

Edtech is one of the few sectors which weathered the funding winter experienced in India,
going ahead of the curve. As per an Inc42 DataLabs report, around 125 Startups were funded
between 2014 and 2016, garnering a total investment of $256 Mn, showcasing an average
year-on-year growth of 49% in deals and 149% in total funding. Also, by Q1 2017, funds
amounting to $21.34 Mn (disclosed funds) have already been infused in the Indian edtech space
across 11 deals.

However, still, the average ticket size of funding in edtech is comparatively less than other
major sectors such as ecommerce. Even majority of the most recent funding in Q1 2017 are all
less than $10 Mn.

In 2016 also, only Simplilearn, Toppr, BYJU’s, and EduPristine were able to raise beyond $10
Mn. Of these, BYJU’S funding was most significant as it raised over $50 Mn in two rounds of

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funding, which continued in 2017 with additional (undisclosed) funding from Verlinvest – a
Belgium-based diversified investment holding company.

According to Shubhanker, most of these companies have been around in some shape or form
for several years now. That has provided them time to not only evolve their model and the form
factor in which content is being delivered but also build trust and familiarity with their core
audience, which we feel matters a great deal in education, more so than other spaces. He said,

“While it is fair to say that edtech has still never gotten as “hot” as say, ecommerce once was,
and that investors are still warming to its potential, the round sizes are probably not the right
way to assess company prospects. Unlike many other kinds of businesses, most education
companies do not require enormous amounts of capital to achieve scale because the product
tends to be built around a highly intangible offering. This capital efficiency plays into the size
of the funding rounds as well.”

Prateek Bhargava, founder and CEO, Mindler.com further believes that given the challenging
nature of the sector, investors want ventures to reach a critical mass and validate their business
models. “While the sector is hot and has glaring inefficiencies to solve, the slow pace of growth
in the initial years is making the investors extremely selective. Also, the capital light nature of
the sector makes the barriers to entry low and makes the space extremely competitive.”

Online Education: Existing Roadblocks and Future Trends

Learntron’s founder Subbu opines that, for B2B startups, long sales cycles is a roadblock while
for B2C startups, the cost of customer acquisition is way too high and eats away into the
margins.

Gaurav Munjal, CEO and co-founder Unacademy agreed to this. He added, “In edtech when
ticket size is huge, the scale is less. For example, when companies are selling high ticket size
courses like $1000 per course, then the number of people buying the course will be very small.
However, when the ticket size is very small, then the scale is large. So, there has to be a balance
somewhere between that. I believe, balancing this out and scaling along, in general, will help
beat the monetisation challenges for the startups.”

Another point was made by Kae’s Shubhankar who said, “For all that has been said and done
in the digital arena, most Indians still feel that high-quality education can only be delivered in
a face-to-face setting, by a trusted individual or organisation and are more than willing to pay
a premium for such a service. The biggest challenge for new-age education companies,
therefore, is to convince their users that they are buying a product that offers the same, if not
better, level of service than a traditional institution.”

To an extent, the startups have been able to achieve success in this area. However, education
in itself is a largely fragmented market, making it a significantly tough space to crack. As
suggested by Mindler’s Prateek, inaccessibility to key decision makers emerges as the top
challenge in the B2B space. While edtech ventures are focussing on speed-to-action and
deliverables, the stakeholders involved may not be working at the same pace and generally like
to take it slow for reasons such as limited budgets, too many options to choose from, fear of
parent response or just plain resistance to change.

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He further added, “Very often, in the edtech space, the consumer and the customer are different.
This is especially true in case of institutional selling or B2B sales. The custodians of decision-
making at times are not in sync with user requirements and are slow to respond. This is also
the reason that B2C models have seen a faster pace of growth compared to B2B model in the
edtech space. The solution here may lie in an innovative go-to-market strategy which can make
the captive B2B market more like a B2B2C.”

The report described further trends that can be expected to make a change in the Indian edtech
space.

With ~280 Mn students expected to be enrolled in schools by 2021 and increasing adoption
amongst this target audience, online primary and secondary supplemental education is expected
to be the dominant category of courses with a 39% market share in 2021.

At the same time, online test preparation is expected to be the fastest-growing category of
online education, estimated to grow at an impressive CAGR of 64% in the next five years.

Open courses and distance learning enrollments in India to rise to around 10 Mn in 2021,
growing at a CAGR of around 10%.

280 Mn job seekers are expected to enter the job market by 2050, thereby opening the gates for
quality skill enhancement training options.

Government initiatives such as SWAYAM, E-Basta, Rashtriya Madhyamik Shiksha Abhiyan

(RMSA), Skill India, and Digital India will enable the infrastructure needed by students to
study online.

In Conclusion
Education is paramount to an emerging nation like India. While the government’s slogan of
Digital India is slowly taking shape with fintech and big data segment (among others)
benefiting from the move, the question arises – are skill and knowledge the same for an
emerging population, as education? As mentioned, legacy ways of imparting education are
being overtaken with modern, tech-friendly methods. Companies such as Emotix Technologies
have even gone a step further and started integrating actual robots to supplement a child’s
learning curve.
With imminent layoffs and job scarcity, working professionals too have taken to upskilling,
reskilling at any and all stages of their careers in order to stay ahead of the automation curve.
There can be no doubt about it: online education by edtech startups is here to stay.
But it is this concluding opinion by Aditi Avasthi, CEO, Embibe.com that defines the state of
online education startups as they are right now,
The edtech industry will still be a fringe play in the face of the gigantic offline education
industry unless we start hitting at the heart of what matters to the student – outcomes. There
has to be a clear RoI from consuming education through high-tech channels beyond mere
convenience. Data science-driven personalisation can make that happen.

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