What’s up with edtech?

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Hello readers,

Online classes: yay, or nay? Honestly, they’re not for me. How do you pay attention when FarmVille – a popular game on Facebook in 2010, when I was still in school -is just a click away? But that doesn’t change the fact that in 2020, education tech has become a hit industry. And this week, it’s also the vertical that has raised the most money.

Want to know more about edtech? We lay out some resources you may need to keep track of all the trends and movements in this industry.

1️⃣ How edtech will differ from the past

Parents are making more active decisions in their children’s education, with 51% spending more money on internet-based learning resources such as virtual tutors and e-learning platforms subscriptions. Even half of YouTube’s users are there for learning purposes, and a third of parents give their children the go-ahead to watch YouTube regularly.

2️⃣ Opportunities and challenges in Indonesia

The archipelago offers a large addressable market and big problems for edtech startups to solve. Indonesia also has 50 million students aged 5 to 18 years old, prompting many startups like Zenius and LingoAce to target this K12 population. Opportunities in the adult and vocational training segments are available as well. However, edtech startups will first need to overcome hurdles like customers’ limited ability to pay, inadequate digital infrastructure, and a shortage of qualified talent.

3️⃣ Vietnam is seeking its next edtech breakthrough

The country has about 16 million students in primary and secondary levels as well as another 1.7 million studying at universities. But besides Topica, Vietnam’s leading edtech startup that bagged US$50 million in 2018, no one else has come close. Furthermore, Topica’s reported layoffs and leadership changes this year may indicate that it’s not so easy for startups to crack the country’s edtech sector despite its lucrative potential.

The biggest deals by country

🇨🇳 Yuanfudao: The Chinese online education platform that helps students to prepare for exams bagged US$2.2 billion from Citic PE, DCP Capital, DST Global, Danhe Capital, Government of Singapore Investment Corporation, Greenwoods Investment, Ocean Link, Temasek Holdings, and TrustBridge Partners.

🇮🇳 Zomato: The India-based restaurant search and discovery app secured US$52 million from Kora Capital.

Pitch decks for your reference

Lists of most active investors in the region

List of top-funded startups in Asia

Going deeper