The edtech industry has been in the spotlight for the wrong reasons.
Coverage of questionable financial practices and aggressive sales tactics from a K-12 player, both mass and silent layoffs have cast a shadow over the entire sector. Amid this, the edtech industry faces another obstacle: a funding winter in the startup space. As venture capital firms tighten their purse strings, many edtech startups are struggling to stay afloat.
I believe it’s time for us to remember that every industry goes through phases of growth, consolidation, and maturity. Let’s explore the edtech industry’s journey, draw parallels with the evolution of the dotcom and e-commerce sectors in the early 2000s, understand why there is hope for a brighter future, and what might help edtechs weather this storm.
The rise of edtech companies has been nothing short of meteoric. Both global and Indian companies have showcased the potential of online education, offering high-quality programs that empower learners worldwide. In the K-12 space, edtech has aimed to level the playing field and bridge teaching gaps, as seen in the case of Khan Academy. One can explore a segment of Khan Academy’s vast repository or read about their work in Uttar Pradesh to grasp the incredible impact and possibilities that lie ahead when the right intent aligns with innovation and sterling execution.
Upskilling or continuing education companies, like upGrad, have been instrumental in helping millions upskill from the comfort of their homes thanks to a steadfast focus on learner outcomes and a keen understanding of what works for the adult consumer. Physics Wallah, the test-prep giant, has shown that organic growth and profitability are possible without the dilution of core values.
However, this growth has also brought challenges to the forefront. Aggressive selling, lofty promises, predatory pricing, messy books, poor reporting; the list is long enough to serve as a reminder that unchecked growth with faulty business practices eventually catches up and thwarts even the grandest plans.
Although this may seem like the end of edtech, it’s worth recalling the early 2000s when the dot-com bubble burst. Businesses with unsustainable models vanished, making way for Amazon and Flipkart to take off and revolutionise e-commerce. The dotcom and e-commerce industries emerged from their turbulent phases stronger and more resilient. For example, Amazon started off as an online bookstore before becoming into a major force in global e-commerce. PayPal was acquired by eBay for $1.5 billion in 2002. Alibaba’s ascent in the early 2000s cleared the path for China’s expansion in the online industry.
India’s e-commerce industry saw notable growth as well, with examples of maturity and consolidation. eBay paid $50 million to purchase Baazee in 2004. In 2007, Flipkart began as an online bookshop and grew to become one of the biggest e-commerce platforms in India. Walmart paid $16 billion to purchase the bulk of Flipkart in 2018, indicating the country’s increasing prominence in the global e-commerce scene. One additional example is Meesho. What began as a social networking platform for product resale developed into a broad marketplace with a variety of product categories.
Any industry’s natural phases of development include consolidation and maturity. It makes it possible to separate the wheat from the chaff, guaranteeing that only companies with a solid base, a reliable business plan, a constant focus on the needs of their customers, and a dedication to moral corporate conduct will thrive. The edtech industry is no exception. It is on the path to maturity, and this journey is an opportunity for reflection and improvement.
Here are a few items that might serve as a starting point for reflection.
Pause and gather insights from independent studies
A UNESCO study reported that technology changes faster than it is possible to study it. According to the study, many companies pay for studies on the effectiveness of their own product. However, these studies are not independent examinations. The need of the hour is independent study and research to gain unbiased insights. In India, this could mean studies on the job markets and employment opportunities in less popular fields and domains. It would also mean deep research on what media mix or technologies work for learners and where most investments are needed.
Focus on outcomes
In the case of K-12, it would mean defining what these outcomes would look like. It would determine if some edtechs resign themselves to being glorified tutorials or push themselves to be engines of social transformation. In the case of upskilling and higher education, it would mean diving into youth employability statistics further, identifying mass outcome areas, and working towards positive change. It would be a good time for academia and industry to join hands and work on this shared problem together so that the nation can reap the benefits of the demographic dividend years.
Better Consumer Experience
E-commerce went on to introduce several consumer-friendly innovations. User reviews, for example, help people evaluate products before buying. This feature made a difference to both organizations and their consumers. Edtechs would need to focus on more features that add value to the consumer and enhance their experience. It’s time to look beyond including new technologies and think deeply about learner problems and how one might solve them at scale using technology.
Personalization
One size doesn’t fit all. E-commerce’s true power is the extent of personalization that it offers due to the advances in data gathering and analysis. One size doesn’t fit all in education as well. Technologies like artificial intelligence can personalize learning experiences when used correctly. There’s potential here to give learners contextual learning that seems relevant and familiar while addressing their learning level and style.
Be better, way better, than brick-and-mortar
There’s a management term, “reverse innovation,” popularized by Dartmouth professors Vijay Govindarajan and Chris Trimble and General Electric’s Jeffrey R. Immelt. It refers to an innovation seen or used first in the developing world, developed at low cost, to solve a pressing problem. The quality of the innovation is such that it spreads to the industrialized world. In the case of edtech, the innovation should be so successful at getting outcomes that the brick-and-mortar institutions adopt it. For example, universities have been taking notice of the skilling and rigorous employability focus of edtech programs and have been learning from them. Universities are also working on evolving their curriculum faster to meet the needs of the industry like edtechs have since inception. Edtechs need to keep up and even accelerate the pace of meaningful innovation going forward.
In conclusion, the edtech industry is going through a transformative journey, much like the dotcom and e-commerce sectors. While challenges exist, they are an integral part of growth and maturation. By learning from history, advocating for responsible practices, committing to student welfare, and embracing more research and innovation, we can ensure that the edtech industry continues to evolve and positively impact the world of education. The best may be yet to come.
