Prepared for
Market Roundup | Online Learning Platforms in India
Edition – 1
April 2021
Page 2
About the report
Foreword
We are living in unprecedented times.
The COVID-19 pandemic, which hit the world in 2020, has changed the world’s operating order. The impact of COVID-19 on global economy has been adverse, with the Indian GDP estimated to
have shrunk by 7%+ in CY2020. However, the pandemic has proved to be a water-shed moment for the digital economy.
With the increased need for social distancing becoming the norm, digital consumption in India has increased rapidly in 2020 on the back of increased online activity across sectors – from social
networking to entertainment. Given the specific impact on the education sector with most schools and colleges closing down, the EdTech industry in India was well positioned to benefit from the
changing consumer preferences.
At the onset of the pandemic, several large EdTech learning platforms in India provided free trial access to their learning content. The user base, reach and engagement on these learning platforms
increased manifold on back of closure of schools, physical coaching / test preparation centers. Several top players rapidly expanded their product categories and capabilities via organic and
inorganic routes.
The last 12 months have also seen strong financial and strategic investor activity in the sector. EdTech sector led the PE/VC funding in 2020 with ~22% share of investments. Backed by strong
funding, large incumbent platforms also chose strategic M&A route to fuel their growth and expand into ancillary offerings.
As we embark on the road ahead, we believe that this is an opportune time to provide readers with a backdrop / context of EdTech industry in India, a summarized view of the top learning platforms
in the industry and their performances in the past 12 months, review the financial and strategic deal activity in the sector and assess the key growth / investment themes for the sector in the next 6-
12 month period.
We hope you will find this an interesting read.
Note for the reader
This report is a first in a series of periodical industry round-ups on the Indian EdTech industry with the aim of providing the reader with a backdrop in which Indian EdTech learning platforms are
operating, tracking the performance of key industry players, and providing a view on the key deal activity in this space. This issue focuses on online K-12 learning and online test preparation segments.
Amitabh Jhingan, EY LLP
Partner, Education Sector Leader
Page 3
Agenda
Market dynamics and trends
Player analysis
Deals landscape
Page 4
Executive summary1
Page 5
-7.7
3.4
-9.6
-8.8
GDP
Agri, forest &
fisheries
Industrial
Services
While COVID-19 led to a general economic slowdown, the pandemic has accelerated the adoption of digital platforms, especially across various consumer facing sectors
COVID-19 pandemic, which hit the world over a
year ago changed the world’s operating order, with
the Indian GDP estimated to have shrunk by 7.7%
between April 2020 and September 2020
Industrial and services sectors were severely
impacted
Ind
us
try
Growth
Lockdown accelerated digital adoption with data
usage in India in CY20 increasing by 34% vis-à-
vis CY19
The time spent on mobile and application
downloads also witnessed increases of 31% and
21% respectively in CY20 (vs.CY 19)
12 15.7
CY2019 CY2020
Data usage (GB per person per month)
3.5 4.6
CY2019 CY2020
Time spent on mobile (in hours)
20 24.3
CY2019 CY2020
Application downloads (in bn)
Apps across various consumer categories
witnessed accelerated adoption
Number of subscriptions for videos saw a
considerable increase along with the
number of subscribers over the year
92%
90%
75%
57%
54%
85%
84%
69%
47%
51%
Messenger Chats
Social networking
Entertainment
Games
Music
CY2020
CY2019
Video subscriptions
(in mn) CY2019 CY2020 Growth
Subscribers 11 29 2.5x
Subscriptions 21 53 2.5x
Source: Secondary research, Ministry of Finance – Govt. of India, EY-Parthenon analysis
Growth rates
Apr 2020 – Sept 2020
Growth in app usage (CY2020)
Page 6
Nation wide lockdown Unlock 1.0 Unlock 2.0 Unlock 3.0 Unlock 4.0 Unlock 5.0
25/03/2020 – 07/06/2020 08/06/2020 01/07/2020 01/08/2020 28/08/2020 15/10/2020 – present
Only essential services allowed Re-opening of
malls, hotels,
restaurants,
places of
worship
Relaxations in
night curfews
Increase in
domestic flights
and trains
Gyms and
yoga centres
opened
Night curfew
revoked
Metro services
allowed; larger
gatherings allowed
Fear of second wave in Mar 2021
resulting in reinstatement of night
curfews and restrictions in several
states
Impact on mainstream education sector
Schools/ Colleges shut
Board exams postponed
No exams for classes 1 to 8
Last SSC paper cancelled
NEP 2020 approved Schools allowed to
partially open for staff
Class IX – XII students
voluntarily allowed in Non-
containment areas
Opening of schools at state’s
discretion
Fear of second wave in Mar 2021
resulting in temporary closures of
schools in several states
Impact on Online learning platforms -- Total page views of top 100 websites in Education segment in India
1.0
1.4
2.0 1.7
2.2 2.1 2.4 2.5 2.1 2.3
2.4
2.1
Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
COVID lockdowns and restrictions adversely impacted the traditional education sector; however, the events accelerated the growth and funding for Indian EdTech sector
Mar’20 Feb’21
Source: Secondary research, News Reports, Similarweb data, EY-Parthenon analysis
~150% growth in page views of top 100 education websites in 6 months (Mar – Oct 2020), of which 100% growth was in 2 month lockdown period
(Mar-May 2020)
Consistent performance on monthly page views during post COVID period indicating user stickiness in platform access To
tal p
ag
e v
iew
s
Page 7
Penetrate deeper into “Bharat”
Vedantu - introduced micro-courses, acquired
doubt-solving platform for penetrating into Tier 3/
4 cities
Most platforms launched multiple state board
offerings to penetrate state markets
Acquire for growth and new capabilities
Byju – used M&A to diversify into coding, doubt-
solving feature and hybrid UG test prep
Unacademy - strengthened its leadership in test-
prep with multiple acquisitions, acquired
capabilities to focus on employability /
placements
Looking beyond traditional segments
Byju’s acquisitions in coding, gamification, and
Unacademy’s acquisition in employability aimed
to drive growth in newer and non-traditional
segments
Several large players were quick to tap the post-COVID opportunities by diversifying into new product-market segments via organic and inorganic means
Byju’s in talks to acquire US-based reading platform Epic”
TechCrunch, Mar’21
Vedantu acquires doubt solving app Instasolv”
Mint, Feb’21
Toppr launches Toppr Codr to teach K-12 students coding”
CNBC TV18, Jul’20
Edtech Platform Toppr Claims 100% Growth In Paid Subscribers In Last Quarter”
Inc42, Nov’20
Airtel partners with Vedantu to provide classes via DTH channels at ₹4 per day”
Mint, Nov’20
Byju’s adds free live classes for students amidst COVID-19 lockdown”
TOI, Apr’20
Unacademy entered the coveted Unicorn Club after raising $150 million in a round led by Softbank.”
Entrepreneur, Sep’20
Unacademy Preps For Acquisitions With $50 Mn Secondary Round From Tiger Global, Others”
Inc42, Jan’21
Unacademy Acquires TapChief To Focus On Higher Education, Placements With Unacademy Pro”
Inc42, Jan’21
Byju’s to buy medical, engineering entrance coaching leader Aakash in $1 billion mega deal”
ThePrint, Jan’21
BYJU's acquires code training app WhiteHat Jr for $300 million”
Mint, Aug’20
Toppr partners Ryan Group to roll out its integrated platform 'School OS’”
CNBC TV18, Aug’20
Key post-COVID growth themes
Source: Secondary research, EY-Parthenon analysis
BYJU’s
Unacademy
Vedantu
Toppr
Page 8
How effectively can the post-COVID
reach and engagement translate into
revenues across various scenarios?
What are the new growth opportunities
for EdTech platforms in the future?
How are unit economics / profitability
likely to change under various scenarios?
How will the future growth and
engagement on the learning platforms vary
across the potential scenarios?
The trajectory of the pandemic will have a significant impact on the short-term future of EdTech; players and investors need to ponder on several open questions
FY22 the next 6-12 months
How will EdTech
evolve in the short-
term – next 6-12
months?
Prolonged COVID
Large scale adoption of online learning
Mainstreaming / precedent-setting of online delivery of
education
Continued growth in PE/VC investments
Minor 2nd / 3rd waves
Gradual resumption of physical learning
Wider acceptance of hybrid learning – potential for
B2B2C models, especially on K-12
Non-critical learning needs to be delayed / shifted online
Quick recoveries
Potential drop in m-o-m EdTech growth
Competition from offline players
Increased focus on monetization of current base
Key questions to answer
1
Scenarios
Source: EY-Parthenon analysis
What will be the impact on strategic M&A
and consolidation within the industry?
2
3
4
5
Page 9
Player analysis 2
Page 10
There are several large online learning platforms in India, with most of them focusing on B2C K12 and test prep segments of the market
Total funding raised (US$ million) Online K-12 / Test Prep Players
Product categories and language
coverage1
Proposition and pricing2
Reach of these learning platforms3
Engagement metrics4
Social media engagement5
We have analyzed the performance of these top four K12 / test
prep centric players on multiple parameters including:
The above analysis has been based on multiple sources including
details available at the websites / apps, secondary search and
standard third party databases such as Similarweb, Alexa rankings,
RivalIQ, Tracxn, and other such databases.
Data as on March 31, 2021
Source: Tracxn, EY-Parthenon analysis
The Indian EdTech landscape has a long tail of smaller players –
a total of 4,450 startups in 2020 with over 1,150 being
shut down and many more coming up
Player analysis
2,770
440206 107 69 67 50 39 28 23
Byju
's
Un
aca
de
my
Ve
da
ntu
Top
pr
Next
Ed
uca
tion
Cue
ma
th
Dou
btN
ut
Le
ad
Scho
ol
Extr
am
ark
s
Cla
ssp
lus
We have shortlisted the top 4 players (by funding raised) for a deeper assessment B2B-centric players
B2C-centric players
Player Valuation
US$
As on date
Byju’s 13 bn March 2021
Unacademy 2 bn Jan, 2021
Vedantu 600 mn July, 2020
Toppr 150 mn July, 2020
Page 11
*Note: Toppr offers coding classes for K-1 to K-12 on its Toppr Codr platform and Vedantu offers coding classes for children aged 6-12; Toppr also offers the Nepal Examination Board
**Note: Languages offered: Unacademy - English, Hindi, Marathi (NTSE, Maharashtra board), Maithili (Maharashtra board K-10) and French (CBSE K-9 and K-10); all courses are also offered in Hinglish; Byju’s and Toppr – English; Vedantu – English and Hindi
Source: Company websites, EY-Parthenon analysis
Toppr has the widest coverage across grades and boards in the K12 segment; Byju’s offerings cover key central and state boards in India
Player analysis – categories and language`s (K12)
Byju’s Toppr* Unacademy Vedantu*
OfferingsNo. of
languages
No. of
boardsOfferings
No. of
languagesNo. of boards Offerings
No. of
languages
No. of
boardsOfferings
No. of
languages
No. of
boards
Pre K and K-5 ✓ ✓ K-5 only X ✓Reading classes for ages
4 – 6 + K1-5
Grades 6 to 8
CBSE ✓ 1 ‒ ✓ 1 ‒ ✓ 2 ‒ ✓ 2
State boards ✓ 1 9 ✓ 1 20 X ‒ ‒ ✓ 21
1-on-1
Other boards
(IGCSE, IB, ICSE)✓ 1
1
Only ICSE ✓ 1 3 X ‒ ‒ ✓ 2
3
IB/IGCSE:
only 1-on-1
Grades 9 to 10 ✓
CBSE ✓ 1 ‒ ✓ 1 ‒ ✓
2
(+ French
as a
subject)
‒ ✓ 2
State boards ✓ 1 9 ✓ 1 20 ✓ 4 1 ✓ 2 1
Other boards
(IGCSE, IB, ICSE) ✓ 11
Only ICSE ✓ 1 3 X ‒ ‒ ✓ 2
3
IB/IGCSE:
only1-on-1
Grades 11 to 12
CBSE X ✓ 1 ‒ ✓ 2 ‒ ✓ 2
State boards X ✓ 1 20 X ‒ ‒ ✓ 21
only 1-on-1
Other boards
(IGCSE, IB, ICSE)X ✓ 1
3
Commerce:
only ICSE
X ‒ ‒ ✓ 23
only1-on-1
Scholarship exams, Olympiad and
standardized testsX ✓ 1
NTSE, IMO,
SAT, etc. ✓ 3 NTSE X
► Toppr’s portfolio of offerings has widest coverage (~20 state boards across grades 6-12) addressing requirements of ~85%+ class X state students in India
► Byju’s portfolio of offerings covers central and 9 key state boards across grades 6 to 10 addressing requirement of ~40% of students in India
► Vedantu offers coverage across central and 1 state board (Maharashtra) via its offerings
► Unacademy offers 4 languages for grades 9-10, and also provides coverage of 1 state board (Maharashtra)
Byju’s offers its K 11-
12 course as a
bundle with the JEE /
NEET package
-
-
-
Page 12
Unacademy is the largest learning platform in terms of number of test prep categories and language offerings
Player analysis – categories and languages (test prep)
Source: Company websites, EY-Parthenon analysis
Byju’s Toppr Unacademy* Vedantu
OfferingsNo. of
languagesNotes Offerings
No. of
languagesNotes Offerings
No. of
languages**Notes Offerings
No. of
languagesNotes
UG entrance exams
JEE ✓ 2 ✓ 1 - ✓ 2 - ✓ 2
NEET ✓ 2 ✓ 1 - ✓ 2 - ✓ 2
BITSAT X - - ✓ 1 - ✓ - - X - -
CLAT X - - ✓ 1 - ✓ 2 - X - -
CA, CS, CMA X - - ✓ 1 - ✓ 2 Excl. CMA X - -
Others (VITEEE, IELTS, UPSEE
WBJEE etc.)X - - ✓ 1
VITEEE, WBJEE,
UPSEE etc. ✓ 1 IELTS X - -
PG entrance exams 8 8
CAT X - - X - - ✓ 2 X - -
IIT JAM X - - X - - ✓ 2 - X - -
GATE X - - X - - ✓ 2 - X - -
NEET PG X - - X - - ✓ 1 - X - -
GRE X - - X - - ✓ 1 - X - -
Government entrance exams
UPSC ✓ 2 - X - - ✓ 3 - X - -
Railway X - - X - - ✓ 2 - X - -
State PSC X - - X - - ✓ 11 - X - -
SSC and Bank X - - X - - ✓ 5 - X - -
CET (MHT CET, KCET, AP EAMCET,
TS EAMCET)X - - ✓ 1 - ✓ 5 - X - -
Defence (CDS/AFCAT/CAPF,
NDA/Airforce X & Y/Navy)X - - ✓ 1 NDA ✓ 2 - ✓ 2 NDA
Teaching (NET + TET) X - - X - ✓ 2 - X - -
Others (ESE, BCECE, KEAM) X - -✓
1BCECE,
KEAM✓ 2 ESE X - -
*Note: Unacademy offers courses for Ujian Tulis Berbasis Komputer (UTBK), an entrance test to higher education which is carried out by the Lembaga Tes Masuk Perguruan Tinggi (LTMPT), a HE Entrance Test Institute; State PSCs include MPSC, TNPSC, Kerala PSC, Karnataka PSC, DSSB, GPSC, OPSC,
JPSC, MPPSC & VYAPAM, APPSC & TSPSC, BPSC, CGPSC, WBPSC, PPSC, HPSC, JKPSC, HPPSC, UPPSC & UPSSSC and RPSC
**Note: Languages offered: Unacademy - English, Hindi, Malayalam, Tamil, Gujarati, Bengali, Telegu, Kannada, Marathi, Sanskrit, Odia; all courses except for JEE, NEET, GATE, NEET PG, GRE, CET and ESE are also offered in Hinglish; Byju’s and Vedantu – English and Hindi; Toppr – English
--
► Toppr has a wide coverage across multiple UG test prep categories and several Government exam categories
► Byju’s has focussed on the biggest categories (JEE, NEET) in UG Test Prep and has also established presence in large Government exam category (UPSC)
► All learning platforms have presence in UG test preparation (JEE, NEET focus)
Page 13
Vedantu and Byju’s offer their courses at relatively higher prices than Toppr and Unacademy on a per subject basis and offer a higher degree of personalized attention
Byju’s Toppr Vedantu Unacademy
CBSE class 9 price (INR) Streaming / SD card =
26,000 (for 2 subjects)
Advanced =
30,000 (12 subjects)
Ultimate =
40,000 (12 subjects)
Pro Lite: 36,000 (4 subjects)
Pro Classic: 48,600 (5 subjects)
Pro Plus: 66,600 (5 subjects)
Plus: 15,000 (9 subjects)
Iconic: 28,000 (9 subjects)
2-year JEE course price
(INR) SD card: 135,000
Advanced: 70,000
Ultimate: 85,000
Pro Lite: 78,299
Pro Classic: 1,08,000
Pro Plus: 1,62,000
Plus: 56,000
Iconic: 1,00,000
Pricing model
Package-based
pricing with annual
upfront payment
Package-based pricing with
upfront payment
Two variants one with an
additional “ask” feature
Package-based pricing with an
option to pay monthly in the Pro
Lite package; upfront payments
in other packages
Three variants, additional
features such as unlimited
doubt-solving offered in the
Classic pack and personal tutor
in the Plus pack
3-24 months subscription plans
with an option to pay in parts or
upfront
Two variants, one offering
additional features such as live
doubt solving and personal tutor
Core value proposition/
advantages
(Website)
Conceptual clarity
through visualization
Personalized learning
Unmatched individual
attention
Platform for all your learning
needs
Widest syllabus coverage
Live & interactive
Best teachers
Adaptive teaching
Convenient & safe
“Netflix for Live Education”
Democratize access to high
quality education
Player analysis – pricing
► Byju’s and Vedantu’s offerings are more premium priced in comparison to the offerings of Toppr and Unacademy
► In K12 - average pricing of ~INR 12,000 – INR 15,000 per subject vs. INR 2,000 – INR 4,000 for Toppr and Unacademy
► In Test-Prep – average pricing of ~INR 100,000+ for 2-year JEE course, vs. INR 60,000- INR 100,000 for Unacademy and Toppr
► Most players offer value adding pricing features such as discounts and EMI. For e.g. Unacademy offers no cost EMI on 6 months and above subscription plans. Similarly, Toppr
offers EMI on courses costing >INR 15,000.
Source: Company websites, EY-Parthenon analysis
Note: Data as on 26 March 2020
Page 14
Toppr’s wide coverage esp. in K12 segment has helped in high traffic generation; Toppr and Byju’s record high monthly visits and unique visitors
Player analysis – reach metrics
Source: SimilarWeb, EY-Parthenon analysis
We
bsit
e v
isit
s
(mobile
+ d
eskto
p)
Un
iqu
e v
isit
ors
(mobile
+ d
eskto
p)
Toppr had multiple product launches in Q2 (Answr,
Codr, OS) driving higher website visits
Nov-20Apr-20 Jul-20May-20 Sept-20Jun-20 Oct-20Aug-20 Dec-20 Jan-21 Feb-21
Toppr and Byju’s
have constantly been
able to generate the
highest traffic (visits,
and unique visitors)
vis-à-vis other learning
platforms on back of
their marketing
campaigns and
product launches
Toppr and Byju’s
have constantly been
able to generate high
traffic (visits, and
unique visitors) vis-à-
vis other learning
platforms
Typical drivers for high
traffic include wide
coverage of grades
and boards (esp. on
K12 segment), multiple
product offerings
(learning platform,
coding, doubt-solving,
etc.) to the same
target segment,
consistent marketing
campaigns
K12 segment in India constitutes of ~260 mn+ students / learners of which ~92 mn+ are in private unaided schools*
Toppr and Byju have a wide coverage (in terms of grades x boards) across K12 segment as well as have ancillary offerings (Coding, Doubt-Solving)
Vedantu, which is a premium priced proposition, has coverage of central and 1 state board
Unacademy’s coverage in K12 segment is limited, given its historic focus on a UG, PG, Government test prep segments
Unacademy
Byju’s
Toppr
Vedantu
Page 15
Unacademy has the highest number of MAUs and DAUs on its platform; Byju’s records higher number of MAUs and DAUs compared to other K12 centric platforms
Player analysis – engagement (stickiness)
Source: SimilarWeb, EY-Parthenon analysis
Ap
p M
AU
s
Unacademy
Byju’s
Toppr
Vedantu
Nov-20Apr-20 Jul-20May-20 Sept-20Jun-20 Oct-20Aug-20 Dec-20 Jan-21 Feb-21
Toppr and Byju’s
have constantly been
able to generate the
highest traffic (visits,
and unique visitors)
vis-à-vis other learning
platforms on back of
their marketing
campaigns and
product launches
Unacademy is the
largest platform in
terms of App DAUs
and MAUs over the
past 12 month period
High MAU and DAU
are driven by user
engagement and
stickiness; this, in turn,
is driven by app
features (UX, UI,
navigability, content
quality) as well as by
consumer preferences
(relevance of offerings
to the market,
seasonality in the
need, user
demographics, other
factors)
Ap
p D
AU
sD
AU
:MA
U
(App)
Multiple government tests (SSC, Bank, Railway,
Defence) announced in the Oct-Dec period
Unacademy scores the highest in terms of stickiness of the offerings with strong MAUs, DAUs and DAU : MAU ratios.
High user stickiness for Unacademy is driven by its relevant suite of offerings for users (esp. on Government test prep segment), unique rock star
faculty model, and relatively shorter test preparation periods (esp. for government and PG test prep segments)
Byju’s score well on MAU and DAU engagement metrics as well on back of its engaging content and personalised attention
Page 16
Unacademy and Vedantu have higher engagement in terms of page views and average daily time spent on site
Player analysis – engagement (interactivity)
Unacademy’s large
number of product
categories on test
prep segment
results in better user
engagement /
interactions
resulting in higher
visit duration, page
views and low
bounce rates
Parameter Byju’s Toppr Unacademy Vedantu
Average Daily Time
Spent on Site (mm:ss)02:46 03:53 05:45 05:31
Average daily page
views per visitor (#)2.03 3.02 4.39 3.34
Bounce Rate 67.6% 59.4% 45.8% 52.9%
Data as on March 30, 2021 | Last 90 day average
Source: Alexa, EY-Parthenon analysis
Unacademy and Vedantu score higher in user engagement / interactions in terms of visit duration and page views
This is driven by app-specific features (UX, UI, AI/ ML based recommendation engine, engaging content), delivery model (Live vs. recorded, degree of personalised
attention) and user profile (user demographics, needs, relevance of product offerings, etc.)
Page 17
Byju’s and Toppr report highest number of followers on Facebook; Unacademy has the highest number of social media followers and YouTube channel subscriptions
Player analysis – engagement (social media)
Source: Rival IQ, EY-Parthenon analysis
1,150 1,270 1,040 143
0
1,000
2,000
Fa
ce
bo
ok
fo
llo
ws (
‘00
0s)
1 6 119 70
1,000
2,000
Tw
itte
r fo
llo
ws
(‘0
00
s)
134 33959
800
1,000
2,000
Insta
gra
m
follo
ws (
‘00
0s)
3.7
0.4
44.36.6
YouTube, has been a important platform for educational content and many EdTech
platforms such as Unacademy started as a YouTube channel.
Note: Followers as on 26 March 2021
To
tal so
cia
l m
ed
ia f
ollo
ws
(‘0
00
s)
1,285 1,3092,118
230
0
1,000
2,000
3,000
Byju’s Toppr Unacademy Vedantu
Byju’s Toppr Unacademy Vedantu
Byju’s Toppr Unacademy Vedantu
Byju’s Toppr Unacademy Vedantu
Byju’s Toppr Unacademy Vedantu
88K 687K 160K ~3K
Engagement (March 2021)
Note: Subscribers on YouTube across 12 channels of Byju’s, 13 channels of Toppr, 177 channels of Unacademy &
32 channels Vedantu as on 31 March 2021
Source: YouTube, EY-Parthenon analysis
YouTube subscribers – cumulative across channels (million)
Page 18
Deals landscape 3
Page 19
COVID-19 induced lockdowns accelerated the growth of online learning platforms; EdTech funding witnessed 4.6x growth in 2020 compared to 2019
Deal landscape
742
325
1,833
2018 2019 2020
+464%
Source: Traxcn, EY-Parthenon analysis
Induced by countrywide lockdowns, 2020 played a pivotal role for the EdTech industry – this is further underpinned by the value of VC/PE deals in EdTech
Investments (by value) in the year grew by ~460% from 2019 – highest in terms of value till date
The year was also characterized by the highest ever volume of consolidation and M&A activity
Active investors included marquee names such as SoftBank, Silver Lake, Sequoia, Blume, BlackRock, etc.
PE
/VC
fu
nd
ing
Str
ate
gic
M&
A
Spike in M&A
activity – primarily
led by string of
acquisitions by
Unacademy & Byju’s
COVID-19 augmented
EdTech growth in 2020 –
leading to a ~460% hike
in funding
22%20%
12%
7%
6%4% 5%
4%
20%
FinTech
EdTechHyperlocal
Social
Logistics Tech
B2C
Others
Gaming
Online
classifieds
EdTech led the quantum of PE/VC
investments in India in 2020
1828
59
20202018 2019
200
10
416
20192018 2020
95
20
20192018 2020
US$8.18 b
1.All 2020 numbers exclusive of Jio deals
# of deals in EdTech (#)Investments in EdTech (US$ m)PE/VC funding in 2020 (by sector)
Page 20
Funding in 2020 was predominantly late stage funding for the four large edtech learning platforms to fund their organic / inorganic growth
Date Investee Investor(s)Deal value
(US$ m)Deal rationale
Mar-21 Byju’s
MC Global edtech investments. B Capital, Tiga
Investments, TCDS (India) LP, Arison Holdings,
XN Exponent Holdings, Baron Emerging Markets
Fund and Baron Global Advantage Fund
460 Funding acquisitions/ Inorganic growth (Acquisition of test
prep player Aakash)
Feb-21 DoubtnutLupa, SIG, Sequoia, Omidyar, Waterbridge,
Redwood, Surge31
Expansion of the product to cover more languages, boards,
etc. and launch of paid courses
Feb-21 SplashLearn Owl Ventures, Accel 18 Scaling of recently launched tutoring vertical and towards
research and development
Dec-20 Cuemath Falcon Edge, Sequoia, CapitalG, Aspada 40 Launch of the product internationally – improving presence
in the US
Nov-20 Unacademy
Tiger Global, Dragoneer, India Internet Fund,
SoftBank, General Atlantic, Steadview, DF,
Sequoia
86 Focused at strengthening position through acquisitions,
diversification into K12 and potential international expansion
Nov-20 Byju’s T. Rowe Price, BlackRock 200 Focused on growth through acquisitions, improving
penetration in lower tiers, category expansion to improve
coverage and development of hybrid models of deliverySept-20 Byju’s
Silver Lake, BlackRock, Tiger Global, General
Atlantic, Alkeon, Sands Capital, Bond Capital501
Sept-20 UnacademySoftBank, General Atlantic, Facebook, Sequoia,
Blume Ventures, Nexus, IIFL Finance154
Focused at strengthening position through acquisitions,
diversification into K12 and potential international expansion
Aug-20 Byju’s DST Global 122 To fuel business expansion goals and also meet working
capital needs
Jul-20 TopprMitul Devchand, Helion, Kaizenwest, Foundation
Holdings, Eight Road Ventures47
Development of AI-based Toppr School OS – unifying in-
school and after-school learning
Jul-20 VedantuCoatue, Tiger Global, GGV Capital, Omidyar,
WestBridge, 360insights, The Rainmaker100
Development of content and refining technologies for live
delivery
Unacademy Byju’s Vedantu TopprSource: Traxcn, Mergermarket, Secondary research, EY-Parthenon analysis
Deal landscape
Page 21
Top EdTech players were also actively engaged in strategic M&A for growth, establishing presence in ancillary markets, and acquiring strategic capabilities
Date TargetDeal value
(US$ m)
Stake
acquired
Valuation
(US$ m)Strategic benefits
Unacademy – (only key deals highlighted) in addition to these, Unacademy acquired ~4 more companies to strengthen its leadership
Mar-21 Handa Ka Funda NA Leadership in digital learning in test-prep (esp. CAT, Banking exams)
Feb-21 TapChief 13.7 Entry into ancillary market of job discovery and placement support to
strengthen Unacademy Pro offering
Dec-20 NeoStencil Consolidate leadership in test-prep and in Tier II/III cites
Jul-20 Mastree 5 51% 13.3 Diversification and entry into K12 learning space
Jul-20 Prepladder 50 100% 50 Strengthen presence in medical test-prep for NEET PG, FMGE, etc.
Byju’s – (only recent key deals highlighted) in addition to these, Byju’s acquired ~7 more companies in K12 learning, gamified learning and career support
Apr-21Aakash
Educational~1000
Strategic merger to benefit from leadership and strong track record in UG test
prep and ability to provide hybrid learning models
Feb-21 Toppr 150 150 Access to a wide syllabus across state boards and test prep categories
Feb-21 Scholr 2.5 Strengthen capabilities in doubt resolution to target Tier 3/4 segments
Sept-20 LabInApp NA Strengthen technical capabilities in virtual lab simulation for K12 segment
Aug-20 Whitehat Jr. 300 100% 300 Ancillary offering to cross-sell and strengthening presence in the US
Vedantu
Feb-21 InstaSolv 67% Strengthen capabilities in doubt resolution to target Tier 3/ 4 audiences
Deal landscape
Source: Traxcn, Mergermarket, Secondary research, EY-Parthenon analysis
- Announced1.Acquisitions between Jul’20 and Mar’21 considered
Page 22
The key investments themes in EdTech are likely to continue to be around monetizing ‘Bharat’, serving global demand, model innovations and market consolidation
Monetizing “Bharat”
opportunity
Global foray – market
entry
Innovative delivery models
123
Portfolio expansion4
With top learning platforms so far being focussed on the “top of the pyramid” (esp. Tier 1/ 2 cities), the
platforms are now looking to expand and tap opportunities in Tier 3/ 4 cities to achieve scale
The players are looking at various levers – sachetization of offerings, vernacularization, usage of free
“doubt resolution” platforms to garner traffic and win share from the unorganized market
EdTech players are increasingly looking at expanding beyond domestic shores
Byju’s acquisition of Whitehat Jr. and Osmo for establishing presence in the US market
Unacademy recently launched test-prep curriculum for Indonesia
Online platforms are associated with inherent limitations around peer learning, track record, learning
outcomes, etc.
Players are innovating and exploring hybrid models of delivery – Byju’s acquires Aakash with an aim to
provide the convenience of online learning with offline immersions
Players are also innovating on technology – with gamification, adaptive learning, etc. to improve user
experience and learning outcomes
Acquisitions provide EdTech players a medium for quick inorganic growth.
While they help strengthen leadership in respective fields, they also enables players to quickly
diversify by building capabilities in complementary offerings (K12 capabilities for test-prep providers
and vice versa)Source: Secondary research, EY-Parthenon analysis
Deal landscape
Key investment theses
Page 23
Terminologies
• The sum of all unique visitors (all devices)
on mobile and website per analyzed month
• Average percentage of users who view
only one page before leaving the website
over the past 90 days
• The average number of pages a viewer
views in a given session over the past 90
days
• The average time on the website over the
past 90 days
• Sum of all visits on mobile and website for
the past 30 daysMonthly visits
• Number of application downloads
• Sum of all daily active users on the app
Monthly
unique visits
Average time
spent
Pages per
visit
Bounce rate
Downloads
DAU
• Sum of all monthly active users (users who
log in even once in the given month) on the
appMAU
• Billion
• Compounded annual growth rate
• Year on year
• Million
• Kindergarten to Grade 12K-12
• Gross domestic product
• Calendar year
Bn
Mn
Y-o-Y
CAGR
GDP
CY
• Under graduate / post graduateUG / PG
• National Education Policy
• Business to consumer
• Business to business
• Secondary School Certificate
• Private Equity / Venture CapitalPE / VC
• US Dollar
• Indian National Rupee
NEP
SSC
B2B
B2C
US$
INR
• Mergers & acquisitionsM&A
Prepared for
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