Edtech typically had individuals as customers and is considered B2C until recently. As the students moved to physical classrooms and with lesser time on hands the Edtechs saw a reduction of students joining their courses. But with tech progress and the Big Companies wanting to train their employees are using them resulting in a win-win for both.
Large Edtechs like Mumbai based upGrad, Simplilearn (US, Singapore & Bengaluru) and Scaler (Bengaluru) are already earning about 15 to 30% of their revenues from the enterprise segment and expect the share to go up to 40 to 50% in near future.
Many large enterprises outsource their software needs to their GCCs in India, and the reskilling of their employees is a big opportunity that has already started trimming the losses of the edtech companies. Many large companies hire fresh graduates and some employees on the bench in IT sector too need to be trained. Being big ticket clients, the edtech sector is expected to do well in near future. There are many startups and smaller edtech companies that are very profitable already but in niche markets and may be able to scale up too. The main challenge may be to have enterprise level technological reliability and robustness with quick upgrading of the sessions.
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