Indian Edtech Start-Ups Make a Comeback with 5x Funding Surge in H1 2025

After experiencing a slowdown and growing skepticism following the Byju’s saga, India’s edtech sector bounched back strongly in the first half of 2025. The investment in edtech start-ups grew over five times compared to the same period last year. It raised $120 million across 11 deals in the Janury-June period, according to Venture Intelligence data shared by The Economic Times.

The sector’s fundraise was $22 million across seven deals in the same period last year, the report said. However, the current figure is still lower than the $230 million funding raised in the first half of 2023.

Most of the funding was directed towards start-ups offering study-abroad solutions, workforce upskilling platforms, and AI-driven ventures expanding into language learning, along with regional education.

The sector is poised for further growth as PhysicsWallah prepares to go public. This marks a revival in momentum after the industry’s reset in the wake of Byju’s downfall, which is now undergoing insolvency proceedings.

Indian Edtech Start-Ups

PhysicsWallah has filed updated draft papers with markets regulator Sebi (Securities and Exchange Board of India) to raise ₹3,820 crore through an initial public offering (IPO) for expansion and growth initiatives.

The proposed IPO comprises a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of shares aggregating up to ₹720 crore by promoters, according to the updated draft red herring prospectus (UDRHP) filed on Saturday.

Both promoters, Alakh Pandey and Prateek Boob, will each offload shares worth ₹360 crore through the OFS. At present, both hold 40.35% stake each in the company.

The edtech offers test preparation courses for competitive exams focusing on JEE, NEET, GATE and UPSC, along with upskilling programmes, delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid centres that combine online teaching with in-person support.

Additionally, Softbank-backed edtech unicorn, Eruditus, has recently closed a refinancing of up to $150 million led by MARS Growth Capital, a joint venture between Liquidity and Japan’s largest bank MUFG Bank. CollegeDekho has also secured ₹40 crore funding from debt marketplace Recur Club.

Former Unacademy COO Vivek Sinha’s edtech start-up Emversity has also raised $5 million in its pre-Series A round led by existing investors Z447 and Lightspeed Venture Partners. And even Byju Raveendran also announed that the founder will launch Byju's 3.0 after the completion of insolvency proceedings.

Some of the prominent start-ups in this segment include Byju’s, Unacademy, and others. This segment also saw a subsequent growth in its funding in 2021, followed by a drop.

By August 2024, this segment secured $151 million in funding, marking a 28% increase compared to the same period in 2023, according to data from Tracxn. The test preparation segment is another area that is gaining momentum.