EdTech After the Pandemic Boom: Where Are India’s Unicorns Heading?

India’s EdTech sector exploded during the COVID years. As schools shut down, platforms like Byju’s, Unacademy, Vedantu, UpGrad, Eruditus, Lead School and PhysicsWallah became unicorns, backed by billions of dollars in funding.

But since then, the industry has faced headwinds: funding has fallen steeply, many startups have shut down, and investor focus is shifting.

In 2021, EdTech startups in India raised over $4 billion; by 2023 and 2024, that number dropped dramatically, funding in 2024 to date is about $215 million, markedly lower than during the boom.

Meanwhile, many of the unicorns are adjusting their strategy. Byju’s, for example, has been cutting back on marketing spend, consolidating its sub-brands and trying to focus on cost efficiency and sustainable growth over rapid expansion.

Firms are reducing burn rates, trimming teams, and being more selective about growth over flashy metrics.

There are some early signs of recovery. In H1 2025, EdTech funding rebounded in part, up more than five-fold compared to the prior year, especially for companies focusing on AI, vernacular education, upskilling, and study-abroad services.

Niche players, especially in online courses, test preparation, professional / workforce skills, are attracting investor attention again.

Challenges remain: profitability is still elusive for many; early-stage funding is hard to come by; and with schools fully reopened, hybrid and offline models are regaining importance. But the unicorns that survive are those re-aligning with lean business models, diversification (across geographies, vernaculars), and technology (especially AI) to stay competitive.