After China’s education crackdown, it’s party time for India’s online start-ups

Eruditus, an executive education platform based in Mumbai, recently raised US$650 million, valuing the firm at US$3.2 billion

As investment pours in, concerns about exploitation of customers have become more urgent, as the sector remains largely unregulated

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An Indian teacher uses an app that uses ‘gamified’ methods to help children learn. Photo: AFP

Published: 10:30am, 25 Aug 2021Updated: 9:22pm, 25 Aug 2021

Business is booming in India’s education technology sector, where the country’s digital expansion, pandemic disruption and China’s crackdown on online tutoring have combined to create a gold rush irresistible to venture capitalists.

As investment floods in, concerns about exploitative practices have grown more urgent, as the industry remains effectively unregulated despite the billions on offer.

Eruditus, an executive education platform based in Mumbai, this month announced a funding round led by US venture capital firm Accel and Japanese conglomerate Softbank. It raised US$650 million, valuing the firm at US$3.2 billion.

It means India’s education technology sector – or ed-tech – has now produced four “unicorns”, as venture capitalists describe privately held start-ups valued at more than US$1 billion.

“The power of digital technology is now revolutionising education [in India],” said Mohan Kannegal, Eruditus CEO for India and Asia-Pacific.

“Given how important high-quality education is to India’s young people, my outlook is that we are at the beginning of a massive transformation. The end-game is that every Indian will have access to the highest quality of education – [it will be] true democratisation of education.”

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