Will self-regulation work for India’s edtech sector?

Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a Premium subscription.

Hello reader,

Last week, I went for my first cycle as a member of the national military reserve. For those not familiar with this, all Singaporean males are required to undergo 10 cycles of military training after their initial two-year stint as a full-time soldier has been completed.

It was a strange feeling experiencing the sights and sounds that were an integral part of my life for a time: the ever-so-slight smell of preservatives in the food, the stale and musky air of the bunks, and the dreaded early mornings.

While most of the week was spent on military procedures, what I really appreciated was talking to some of the other servicemen and taking in as many life lessons as I could. Some of what I learned pertained to family, while others were about careers. In any case, it was nice to realize that learning never really stops.

Speaking of education, India’s edtech scene is seeing some big moves, as the country’s top players have come together to form a new regulatory body. What will come of it? That’s for you to find out in our premium story for today.

Today we look at,

• Whether the formation of an organic regulatory body is enough to stave off government intervention in the Indian edtech space.
• Livestreaming firm BeLive getting a US$4.5 million boost.
• Other newsy highlights such as PUBG: Battlegrounds developer Krafton taking on Garena, Google, and Apple, as well as fresh capital for beauty social commerce firm Raena.

Premium summary

Watching the watchmen

Image credit: Timmy Loen

The saying “who watches the watchmen?” is often used to describe the issue of governing or regulating those in power. In India, the country’s major edtech players are looking to solve this problem with the creation of a self-regulatory body known as the Indian Edtech Consortium (IEC).

• Edtech, assemble: Companies such as Byju’s, Unacademy, upGrad, Vedantu, and Simplilearn make up the IEC. The development comes as the industry grapples with several issues, prompting the country’s education ministry to announce that it would be working on its own regulatory policy for the sector.

• Monkey see, monkey do?: Many of India’s concerns about edtech have also come amid China’s crackdowns on its own edtech industry. Following new regulations, edtech companies in China have had to lay off hundreds or even thousands of employees in a bid to stay compliant. The crackdowns have “spooked” edtech startups and investors in India, according to Siddarth Pai, founding partner of 3one4 Capital.

• Positive examples: Edtech is not the first industry in India to take a stab at self-regulation. The country’s advertising sector has been using its own regulatory framework since 1985, allowing it to avoid government regulation. Should the IEC be able to follow this example, edtech firms could see accelerated market opportunities while protecting learners and other stakeholders at the same time.

Believing in BeLive