“You Invested in Edtech Recently? Hmm…Interesting!”
At a recent industry event, I had the opportunity to connect with many peers from the investing ecosystem. Every time I mentioned Equanimity’s latest edtech investment, I was met with expressions of surprise. Edtech investments have plummeted over the past two years. In 2021, EdTech startups raised USD 4.8B making it the fifth most funded sector in the country which saw a significant drop in 2023 to about USD 0.6B with a slight up-tick to USD 0.7B in 2024. The skepticism is understandable as students move away from online-only models, while unicorns in the space navigate turmoil. Offline has reclaimed it’s share in Edtech, parents want their kids to step out of the house.
But is a sector's success only validated by its funding? There will always be certain VC-favourite sectors that shift with different cycles. During the crest, companies in a booming sector may experience immense growth, leaving funds that didn’t ride the wave feeling left out. But during the trough, what will drive the company forward? I believe it ultimately comes down to whether the company is solving a fundamental human need and addressing a large market.
We've all heard about the gap between industry and academia. Despite advancements in education infrastructure and curriculum, this gap persists—not due to a lack of progress, but because of the rapid pace of change driven by emerging technologies. Employers are evolving faster than universities can keep up, leaving millions of graduates underprepared for modern job roles. As per the recent QS World future skills index, India’s Skills Fit score, which measures alignment between workforce skills and employer needs stands at 59.1/100 vs. 86.1, which is the G7 average. The Skills Fit score highlights how effectively education systems prepare graduates for key industries, especially in emerging fields like AI, green technology, and digital innovation.
Now that the need is established, let’s try explore the market size and the growth potential. The Indian youth in the age group of 15-29 years comprise 27.2% of the population for year 2021 (Ministry of Statistics & Programme implementation GoI). According to the World Economic Forum Future of Jobs report, globally, frontline job roles like farmworkers, delivery drivers, construction workers, salespersons, etc. are predicted to see the largest growth in absolute terms of volume. However, technology-related roles are the fastest-growing jobs in percentage terms, including Big Data Specialists, Fintech Engineers, AI and Machine Learning Specialists and Software and Application Developers.
Udemy’s CEO, Greg Brown, recently stated, “In the past year alone, we saw 1.2 million GenAI enrolments from India—equivalent to more than two enrolments per minute.” With 16 million users in India, Udemy is witnessing significant growth in GenAI skill development, driven not just by individual learners but also by corporates investing in soft skills to complement GenAI learning. This trend is not just limited to online platforms—leading Indian universities and colleges are actively revamping their curricula to integrate AI, cybersecurity, and data science into their current programs.
At Equanimity, we invested in Edept which is trying to solve this problem. Edept empowers universities and institutes to offer industry-led degree and certification programs in new-age courses, enhancing employability outcomes for young graduates. Universities are actively seeking such partnerships to enhance their digital capabilities and unlock new revenue streams by introducing innovative, market-relevant courses. Edept offers programs in GenAI, data analytics, cybersecurity, business analytics, and more. By embedding these programs into degree pathways, universities are able to make their graduates more employable and differentiate their programs.
Beyond skilling, mentorship is also a critical requirement. A study by Praxis Global last year among higher education students highlighted the growing importance of mentorship, with 40% of respondents identifying mentoring facilities as a key factor when choosing online upskilling courses. Mentorship helps learners refine their skills further and apply them effectively in real-world scenarios. In fact, industry mentorship is becoming a key differentiator in skill-based education, as companies are increasingly valuing practical knowledge over theoretical expertise.
Edept connects students with industry mentors who provide insights into current trends and practical applications of their coursework in the real world. They take mentorship a step further by offering industry projects and internship opportunities, allowing students to gain hands-on experience. This not only enhances learning but also helps industry players build a strong talent pipeline and assess student performance ahead of the final placement season. With hirers valuing both skills and formal degrees, industry collaborations are becoming essential for academia, students and employers.
The Indian government is also pushing for educational advancement, as reflected in the recent budget. The allocation for the Ministry of Education reached ₹128,650 crore, a 6.22% increase over the Budget Estimate (BE) 2024-25. This increased investment aims to strengthen school education, higher education, skill development, and research, ultimately enhancing India’s human capital. Other Government initiatives such as the Skill India Mission and the National Education Policy (NEP) 2020 further reinforce the shift towards skill-based, multidisciplinary learning models.
As the workforce evolves, the role of edtech will no longer be about digital content—it will be about equipping learners with tangible, future-proof skills that make them indispensable in the job market. With players like Edept bridging the skills gap, India’s workforce will see improved employability, accelerated economic growth, and enhanced global competitiveness.
- Pooja Parmar, Equanimity Investments