India holds an important place in the global education industry. The country has one of the largest networks of higher education institutions in the world, with ~260 million students enrolled in >1.5 million schools and ~39,000 colleges, primarily dominated by the private sector. In India, the education market stood at US$ 100 billion in 2016 and is expected to reach US$ 180 billion by 2020, presenting itself as a lucrative opportunity for monetisation.
Introduction of technology has led to increasing acceptance of alternative learning modes such as online learning in India. As of 2016, India witnessed a growth in users with 40% of the total population using the Internet. The internet user base is expected to reach 735 million by 2021, highlighting a positive outlook for online education in India. With the highest adoption rate of technology among the youth and an exponential rise in the number of smartphone users, the country will witness an incredible pace of internet growth.
The online education market stood at US$ 247 million in 2016 with ~1.57 million paid users; is expected to expand at a 52% CAGR to reach US$ 1.96 billion in 2021 driven by increased consumer adoption, improvements in offerings and changes in business models. The paid user base is expected to increase from 1.57 million users in 2016 to ~9.6 million in 2021. Out of 1400 edtech companies in the world, India has the second-highest number with 327 companies (10%).