India's Ed-tech sector sees USD 2.1 billion investment in 2020: Research report

India's Ed-tech sector has seen an investment of USD 2.1 billion in the calendar year 2020 compared to USD 1.7 billion in the entire previous decade, according to a research report.

The Ed-tech industry is poised to reach USD 12 billion by 2025, said Ed-tech sector thematic research report covering the e-learning industry of Anand Rathi Advisors Limited (ARAL).

Higher population of young workforce, socio-economic indicators, rising urbanisation, surging internet users and increasing amount of unemployment in the country are a few favourable factors which water the seeds of the rapidly evolving Ed-tech industry, it said. Increasing investor interest in the segment in the last five years has put the wind in the sails of Indian Ed- tech industry, the report said.

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"2020 has seen a higher amount of total investments of USD 2.1 billion in the sector compared to investment of USD 1.7 billion in last 10 years combined," ARAL said.

COVID-19 pandemic has helped move the Ed-tech industry forward.

"With lockdowns making offline education ineffective, adopting online modes to continue learning was the next step enabling e-learning to gain a foothold in the long term," it said.

The report also discusses the challenges faced by various stakeholders, the National Education Policy 2020 and other government initiatives that help the sector thrive.