The untapped potential of edtech in Indonesia

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Hello readers,

When I was working on the Tech in Asia Conference Report – A glimpse into Southeast Asia’s golden age – the potential of edtech in the region came up a fair bit in my conversations with several VCs.

Edtech is an exciting vertical in Southeast Asia and especially so in Indonesia. The country is home to the fourth-largest education system in the world, but it faces several challenges in the sector. While that may be the case, this also means there’s plenty of opportunities for startups to address the gaps.

Today we look at,

• The potential that Indonesia’s edtech sector holds
• A Singaporean e-scooter firm’s plans for expansion
• Other newsy highlights such as the latest investment into India by Lee Fixel’s venture fund and Amazon’s plans for more office space in Singapore

Plenty of room to grow in Indonesia’s edtech scene

Edtech startups in Indonesia are a varied bunch, providing services for vocational training, early childhood education, and learning management, among others.

• Kid gloves on: The majority of Indonesian edtech startups that raised money in 2020 cater to K12 students, or students from ages 5 to 18. However, startups targeting the vocational training and learning management system segments have also raised funds.
• Untapped potential: The K12 segment is seeing a high rate of growth, but market penetration remains low. Additionally, edtech companies usually target junior to senior high school students, or those ages 12 and up, which means that the primary or pre-primary sector is an underserved market that businesses could explore.
• The next big thing? As Indonesia’s economy digitizes, workers will have to upskill, making vocational training an exciting area for growth in edtech. Firms in the space could also go into the business-to-business segment by selling their products to schools.

Read more: Indonesian edtech’s unexploited opportunities

Scooting to success

Vroom! Singapore-based e-scooter firm Neuron Mobility announced that it has raised US$12 million in a series A+ funding round led by Australian tech-focused VC firm Square Peg, along with GSR Ventures. This brings the company’s total series A funding to US$30.5 million.

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