India's edtech sector continues to feel the effects of the funding slowdown, with total fundraising from January to August 2024 reaching just $215 million, a 30% drop compared to the $307 million raised during the same period in 2023. According to the *Tracxn Feed Geo Report: Edtech India 2024*, the sector, which consists of roughly 11,000 active companies, still ranks as the third highest globally in terms of total investment to date.
Despite this overall decline, there is a positive trend in the first half of 2024. The sector attracted $164 million in funding in H1 2024, nearly doubling the $81.9 million raised in H2 2023. While the sector faces challenges due to macroeconomic conditions and the return to traditional learning as schools reopen, demand remains strong for innovative online courses and professional upskilling programs, particularly in areas where offline education is inadequate.
The highest funding quarter for Indian edtech was recorded in Q3 2021, when the sector raised $2.48 billion. Although current funding levels are far below those record highs, there are signs of renewed investor interest as companies adapt to hybrid learning models, integrating digital innovations with conventional teaching methods. Neha Singh, co-founder of Tracxn, commented that while funding remains below its 2021 peak, the sector's growth in 2024 reflects a potential rebound driven by this ongoing evolution in education.
