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Why Do Edtech Startups Fail Despite Funding Boom?

Edtech startups in India raised more than $4.7 B in 2021, and four of them reached unicorn status during 2021-22. So why are the B2C Edtech models in India struggling despite good funding

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Why Do Edtech Startups Fail Despite Funding Boom?

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  1. Why Do Edtech Startups Fail Despite Funding Boom? GREEN pakistan.desertcart.com

  2. EdTech is a term used to describe digital learning technologies that enhance or supplement education in the classroom. EdTech can include hardware like computers, as well as software designed to improve teaching and learning. Today's educators use EdTech tools to increase student engagement, improve educational outcomes, and encourage lifelong learning. What is EdTech? pakistan.desertcart.com

  3. It is one of the new types of educational technology that has grown very fast during the pandemic time. Some of the biggest EdTech companies are Coursera, Byjus, and Unacademy providing digital education to thousands of students across the globe. As the world is moving online some customers also prefer to shop for stationery and school supplies online along with studying online. What is EdTech? pakistan.desertcart.com

  4. Why do Education Tech Startups Fail? Edtech startups in India raisedmore than $4.7 B in 2021, and four of them reached unicorn status during 2021-22. So why are the B2C Edtech models in India struggling despite good funding to back them? Let’s examine some of the reasons why these B2C Edtech companies have not sustained over the years. pakistan.desertcart.com

  5. Edtech startups are creating unrealistic pricing models in the Indian markets. They charge exorbitant prices and parents don't have much to afford them. The high customer acquisition cost (CAC) pushes Edtech players to increase their pricing, without realizing that the end customer; the parents have only as much. Unrealistic Pricing for EdTech Customers pakistan.desertcart.com

  6. Education is a critical factor for all Edtech companies, who are making a difference in the lives of children around the world. There is a huge opportunity for them in our economy but their current pricing models are not sustainable and don’t reflect the reality at all. Unrealistic Pricing for EdTech Customers pakistan.desertcart.com

  7. The education tech sector in India is a nascent industry. The players have only seen success and prosperity in the past few years, with no proper benchmarking, as to where they stand globally or how much they need to charge from their customers. Unrealistic Pricing for EdTech Customers pakistan.desertcart.com

  8. In India, education is one of the largest and most critical sectors with a unique market structure. One of the biggest challenges for Edtech firms in the country is focusing on growth at the expense of customer understanding. Start-ups can't see past short-term growth and underestimate customer dynamics. The higher education system in India is undergoing a transformation where student mobility and choice are increasing. Inability to Understand their Core Customer Requirements pakistan.desertcart.com

  9. However, most companies in the space seem to be too obsessed with short-term growth, to focus on building long-term durable relationships. They also tend to underestimate the competitive landscape and evolving customer requirements. Inability to Understand their Core Customer Requirements pakistan.desertcart.com

  10. High Customer Acquisition Cost High customer acquisition cost (CAC) has been the buzzword of 2019 and it is an important metric that every startup should monitor closely. At the beginning of 2020, when Edtech was in full bloom, the cost of customer acquisition shot up by 70-80% of the revenue of the Edtech platforms from a humble 20-25%. It is a simple dynamic, the marketing and branding activities for all B2C Edtech platforms remain the same; it's digital. pakistan.desertcart.com

  11. Missing Contextual Integration The Edtech companies fail at providing a more contextual understanding of the subject. The best example to understand this would be the homework assignment provided by teachers. In such instances, students are expected to do homeschooling or invest more time in their academics outside of school. pakistan.desertcart.com

  12. Missing Contextual Integration Some of these projects take weeks/months to complete, which is almost impossible for an average student, especially with all the unstructured time after school, weekends, and summers. pakistan.desertcart.com

  13. SEE YOU! THANK YOU!!! You can find us at twitter @desertcartmena & support@desertcart.com pakistan.desertcart.com

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