In 2020:
- BYJU is the world's leading unicorn ed-tech unicorn
- September 2020 BJYU is valued at 10.0 B +
By 2025:
- EdTech is growing at 16.3% and will grow 2.5x from 2019 to 2025
- Global education market reaches 7.3 T$
- Global edtech to reach $ 404 B$
Why is Ed-tech growing? Why is BYJU expanding?
- The surge in EdTech spending brought on by COVID-19 is expected to re-calibrate to a longer-term integration of digital technologies and shift to much higher adoption of online education in the future.
- Business to consumer EdTech models are on the rise as students, parents and workers increasingly seek e-learning support and up-skilling
- The broader consumer technology expectations will focus on mobility, personalization, social and gamified learning- all of which BYJU offers at a superior service compared to its competitors in the Indian market it dominates
How is BYJU positioned in world's top ranked ed-tech markets?
1. China |
2. India |
China remains the largest global market for EdTech funding by a large margin. The pace seems to picking back up as China emerges from the economic impact of COVID faster than most in 2020. Regardless, the largest unicorn company in China is valued at 7.8$ B compared to BYJU at 10$ B.
SOURCE 3. U.S.Operating in a very different learner, parent, institutional and political landscape than Asian peers, US Unicorns are predominantly post-secondary focused (e.g. Coursera, Udemy).U.S. startups in ed-tech raised almost $1.5 billion from investors last year, a 20% increase from 2017, research firm EdSurge says. In 2019, BIJU paid $120 million to acquire Osmo, a U.S. startup that makes learning games for young children. BYJU believes that the U.S. has a large demand for “better learning,” a strong digital payment infrastructure, and a willingness to pay subscription fees. Winning in U.S.’s education market, where most students attend public schools and many ed-tech companies are proliferating, is challenging. For this reason, Byju markets targets younger children in a new, growing post-COVID U.S. market by offering online-only learning videos and games.
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India has overtaken the US ed-tech market in 2020, for the most part driven by ByJu’s relentless capital consumption. With more than 1.25 billion people, the second most populated country in the world, it has 50 million students going to school or preparing for competitive exams. BYJU provides a low-cost solution to India's high-cost education infrastructure.
SOURCE Conclusion:BYJU cornered the ed-tech market in India to a consumer base the company identified and targeted. It takes a personalized learning approach, and combines content, media and technology to make learning effective. It has scaled a business to customer learning model in a profitable way in India by focusing on content and teaching in a targeted consumer market with high demand. Is it wise to expand to the U.S., even though India presents such a vast untapped opportunity with so many students in need? BYJU believes so and will continue to target the younger education market in the U.S.
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