An unprecedented advisory from the Union Education Ministry urging citizens to exercise caution while dealing with edtech companies in December 2021 saw some of the leading lights of India’s edtech arena, including the likes of Byju’s, UpGrad etc., scampering to form the India Edtech Consortium as a self-regulatory body to improve the edtech sector’s act on the way it dealt with customers.
Two years since the formation of the IEC under the aegis of the Internet & Mobile Association of India (IAMAI), will recent comments made by UpGrad Co-Founder Ronnie Screwvala about the edtech sector, as reported in the media lead to a revamp in the operations of the India Edtech Consortium and a change in its member composition?
Or, are we likely to witness the establishment of a new industry-led body for the edtech sector that would exclusively focus on aspects related to corporate governance in this promising domain? And possibly even revive the old debate about whether the edtech sector needs to be regulated?
Edtech’s Self-Created Problems
While only time can tell which of these three scenarios would play out in the edtech sector, Screwvala’s outburst does imply that at least some in the Indian edtech arena feel that the business-as-usual approach is past its sell-by date and a new way of doing things is called for in the edtech domain. Incidentally, till now, there has been no official reaction from either the IEC or the IAMAI on what Screwvala has had to say about how the actions of some individuals have contributed to the current challenges being faced by the edtech domain.
But, while Screwvala may have a point, one should not lose sight of the fact that blame games will not help India’s edtech arena get itself out of the situation it now finds itself in due to a combination of factors, many of which are self-created.
Individual companies in the edtech arena need to take a long hard look at their operations, put in place strong oversight mechanisms, and think long term rather than be mindlessly obsessed with valuations to emerge as stronger sustainable enterprises. On its part, UpGrad must take on a bigger responsibility of being an example for others in the Indian edtech arena now that its actions would come under the spotlight even more because of the strong stance taken by Screwvala.
Onus On Board Members
One would hope that Screwvala mentioning the need for greater oversight would hopefully galvanise board members at edtech companies to maintain a more effective check on the functioning of these enterprises by not shying away from asking the tough questions to charismatic founder CEOs at startups. It would be even better if Screwvala’s comments could lead to edtech companies appointing more independent directors on their boards.
At a time when doubts have increasingly started to surface over corporate governance at even storied organisations being more honoured in the breach than in the observance, having a larger number of independent directors at edtech companies can ensure that the checks and balances system at such enterprises is working effectively to benefit all stakeholders, including the users of edtech platforms. By virtue of their positions, independent directors may be expected to more likely display the courage to speak up strongly at board meetings even if they were the only dissenting voices at such forums.
Until recently, the edtech sector was looked upon as the biggest success stories of the Indian startup ecosystem courtesy the humongous valuation that Byju’s once enjoyed. Some of that gloss of the edtech sector has now considerably diminished largely due to the troubles at Byju’s, which, by the way, was also the only Indian company to sponsor the FIFA World Cup 2022 held in Qatar.
Sumali Moitra is a current affairs commentator. Twitter: @sumalimoitra. Views are personal, and do not represent the stand of this publication.
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