In the last couple of months, you must have seen news stating a ton of layoffs in the Ed-Tech Space of India and that includes Companies with Billion Dollar Valuations like Unacademy, and Vedantu as well as Byju's, but very few people are talking as to why this is happening now. So today let's discuss why I think the Ed-Tech Industry in India is Crashing down.
After Covid hit us in 2020 we quickly saw the transformation of Education from OFFLINE to an ONLINE form and that literally blew the Ed-Tech Industry in India into the Skies as their valuations went crazy and Venture Capitalists just couldn't slow down pouring Money into them. As a result of that, the Ed-Tech Industry progressed a lot and acquired a lot of students under their banner and on paper, all looked good. But there was a little thing that they forgot to account for and that was NORMALCY.
So when the world started to become Normal and Schools started to open even though most of the Ed-Tech Companies thought they were going to coexist that didn't really happen. Instead, we saw a steady decline in Userbase of several Ed-Tech Companies and that led to a huge Dip in their overall Valuation. Now there were some Ed-Tech Companies that have tried venturing into the Offline market as well by acquiring different Companies but those were simply not enough for them to keep their Userbase intact.
If all of that was not enough the RBI hiked the Repo rates which meant that the VC money that was flowing into the Companies was halted which further meant that these Ed-Tech Companies had to make some tough decisions and among those Tough Decisions were the most obvious one which was FIRING PEOPLE. The sheer number of people that were being Laid Off from their Jobs was just insane. It was so bad that it made National news almost every other day, and now after almost hundreds of people were laid off from each Ed-Tech Company, we still are unsure what will happen next and what the future holds for ED-TECH in INDIA.