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Investors favour upskilling platforms as other edtechs struggle with funding winter

Higher education and upskilling startups have raised $1.1 billion in private equity and venture capital funding so far this year, slightly less than the $1.25 billion raised in the first 11 months of 2021, according to data by Tracxn Technologies.

Bengaluru/Mumbai / November 30, 2022 / 11:42 AM IST
(Illustration by Suneesh K.)

(Illustration by Suneesh K.)

With schools, colleges, and physical tuition centres reopening, India's edtech startups have struggled to raise funds from investors this year. To make matters worse, the much-discussed funding winter has made it difficult for edtech startups to raise funds.

Despite this, a niche category of online learning - higher edtech and upskilling - appears to have found favour with investors due to continued growth in demand for their offerings.

Higher education and upskilling startups have raised $1.1 billion in private equity and venture capital funding so far this year, slightly less than the $1.25 billion raised in the first 11 months of 2021, according to data by Tracxn Technologies.

K-12 (kindergarten through class 12) and test preparation platforms, on the other hand, have seen a 60 percent decline in funding during the same period. According to the data, K-12 and test prep startups have raised $1.78 billion so far this year, compared to $4.13 billion in the first 11 months of 2021.