BENGALURU: Funding in the edtech sector has witnessed a significant drop, about 39%, in 2022 compared to last year. According to market intelligence firm Tracxn report, about 70% of funding is made up of five $100+ million rounds raised by edtech firms Byju’s, Upgrad, LEAD School and PhysicsWallah.
The sector has been struggling ever since schools and colleges reopened after the pandemic, forcing many companies to fire employees to reduce operational costs.
The report also says, in 2022, Indian start-ups have raised $24.7 billion in funds, which is 35% lower compared to the same period last year ($37.2 billion). It attributes the drop to a decline in late-stage investments that fell by 45% from $29.3 billion in January-November 2021 to $16.1 billion for the same period in 2022.