With the possibility of going back to schools and universities increasingly slim for a second year in a row, EdTech startups were having a heyday. Then came the report of the Hero Group’s foray into the EdTech space with its own startup.
Teachers being among the unsung heroes of a pandemic, innovation in education became much more prominent. Technology became the catalyst of change. Last week Hero Group began to hire professionals for key positions in its proposed EdTech startup. Munjal family, which founded and owns the Hero Cycles since 1956 has been at the forefront in the education industry as well.
Pandemic was not only an eye-opener for entrepreneurs and businessmen to transit in their model and theory but also for the investors, to foresee the scope of expansion. The trend of online education or digital teaching initiated by ed-tech startups like Byju’s, Unacademy, and Vedantu experienced a big surge in revenue as they were able to attract their customer base faster. Students can no longer access tuitions and examination coaching, these startups offered customized study portions for anything you want help with.
You will find more infographics at Statista
Last year, 4,440 ed-tech platforms raised funding of more than $1.1 billion. This amount is four times more than what was raised in four years previously.
Taking a leap of faith with high-tech ambitions
Hero group is inclined towards industry-required professional courses. A lot of job postings and forms to enroll can be seen on Linkedin and job searching sites like iimjobs.com. Named after co-founder and chairman of Hero Motor Group, Brijmohan Lall Munjal, Munjal University was founded in 2013. The focus of the university was to not make education a business but to impart quality education of industry standards.
Currently, the BML Munjal University offers professional courses which increase the probability of students being employed at top companies in the country. But with the Hero Group entering the EdTech space, a larger collaboration with the University would be ideal for the startup. The faculty already at hand, combined with technology prowess of the group and its financial power, a Hero EdTech startup will be a formidable rival for the legacy players in India.
Providing digitized education
Moving towards an inclusive digital future, the internet, modern devices, and sophisticated software are now available at every nook & corner of even the semi-developed cities in India. The scope of reach of education has widened like never before. The impact of Edtech on education, society in general, is a reliable bet. Consequently. the EdTech sector as a business opportunity is within the grasp of aspiring conglomerates like the Hero Group that wish to create their own startups.
In a report published by Harvard Business Review, it was mentioned that people are open and receptive to the idea of studying online. They are most focussed and it saves their time otherwise spent on unwanted things. Expanding the business through an online platform will be a tough spot to be in. The market already has players that have a prime position in the ed-tech industry.
Startups like Unacademy, Toppr, and Byju’s have raised funding from Soft Bank, Tiger Global, and 100x.vc. According to a 2016 KPMG report, the EdTech industry in India was worth about $247million and could reach $1.96 billion in 2021.
Hero has the leverage on the funding factor. Hero Group will have the edge in terms of the investment needed to set up the new EdTech startup. Munjal’s new ed-tech platform will be including gamification of learning, user-friendly tools, and artificial learning. Courses based on and powered through AI and Blockchain technology will provide a digital storage of academics for authenticated users that would accelerate its implementation with the technology.