E-commerce in education is among the top up and coming sectors globally, according to a report by YoStartups. The education e-commerce startup ventures are on the rise around the world especially in regions that do not have access to good educational institutions or educators. These ventures offer a diverse range of services from online tutorial classes to full-fledged courses at various levels.
According to a Sloan Consortium study conducted in 2011, 6 million students in the US have opted for at least one online course. The online education sector is estimated to touch over $275 billion in 2022.
According to a research report by YoStartups, there has been a notable increase in the edtech and other online education platforms across the world. This growth is also fuelled by the positive trends in the investments in the sector.
In the years from 2014 to 2018, there has been a 10% increase in the investments received by the sector. 2016 seemed to be a financially eventful year for the segment for being the year with the maximum number of deals and highest investment amounts raised in the five years. In terms of the investments received each year, 2018 is the closest to 2016, but the same cannot be said for the number of deals as the lowest number of deals in the period were recorded in 2018.
Here are some of the top startups that are helping shape the education e-commerce segment.
Byju’s is one of the top EdTech startups
The learning app company from India has taken the global education e-commerce industry by storm with its unmatched growth. The company was set up in 2008 by Byju Raveendran and Divya Gokulnath and is among the top unicorn startups in India. Byju’s learning app provides effective learning programs for students from grade 6 through 12 and for a number of competitive exams. The Bangalore based startup has made 3 acquisitions so far and is backed by the likes of Aarin Capital, Sofina, and Sequoia.
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Coursera is one of the top EdTech startups
Co-founded by Andrew Ng and Daphne Koller, Coursera is a leading online education brand based in Silicon Valley. The innovative startup partners with close to 150 universities and educational institutions across the world to provide excellent online courses for several specializations. It counts more than 20 million active users and has over a 1000 online courses to offer. Coursera partners with the likes of John Hopkins University, University of Pennsylvania, and Standford among the many others to bring its course to students across cities. The online courses are offered via their web-based platform and through their app.
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Kahoot! is one of the top EdTech startups
Oslo based Kahoot! is an innovative learning brand that offers online courses through a game-based platform. Kahoot! founders Alf Inge Wang, Asmund Furuseth, Jamie Brooker, Johan Brand, and Morten Vorsevik found the company in 2011 and have seen the startup set new benchmarks in the education e-commerce industry since then. The platform is available in over 200 countries across the globe and offers learning programs for various subjects in multiple languages for K-12 students. Kahoot! has captured a large market in the US and the UK with a good share of teachers and students using the platform to learn and impart knowledge in non-conventional and fun ways. According to the company’s data, more than 50% of students in the US use Kahoot!.
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Babbel is one of the top EdTech startups
Babbel is helping combat the shortage of language teachers by offering e-learning solutions for learning new languages through its app. The Berlin based startup is a leading language learning app globally that boasts of an active user base of 1 million. The app has been a hit among its users owing to the effective language lessons it offers that is helping them hold small conversations within using it for as less as five hours. Babbel was founded by Lorenz Heine, Markus Witte, and Thomas Holl in 2007 and has grown to become one of the most innovative companies in the online education sector. The app currently offers lessons for 14 languages.
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Course Hero is one of the top EdTech startups
California based online education company Course Hero is among the first few companies to have entered the online education arena. The company’s platform offers access to over 20 million study materials for various courses and is a one-stop shop for such materials in the form of notes, videos, and practice problems among the others. Co-founded by Gregor Carrigan, Jared Grauer, and Andrew T. Grauer, Course Hero offers learning aids that help in building up the knowledge gained in classrooms at a deep level through easy and detailed learning materials.
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Countries with Rapidly Growing Education E-commerce Sectors
Around the globe, more and more countries are now recognizing the need and importance of digital education tools and brands. The top countries that are leading the way setting examples of successful convergence of e-commerce and education are China, India, and the USA.
China as a market for EdTech or Education E-commerce Startups
China’s unmatched technological readiness combined with its lead in introducing the best of technologies to the rest of the world creates perfect grounds for a thriving education e-commerce sector. The Chinese online education market was valued at 29 billion yuan in 2017 and is expected to continue to grow steadily over the next few years. The country has a robust demand for online education and learning platforms owing to the popular practice of enrolling students in additional classes after school hours. A notable company from the education e-commerce sector in China is VIPKid, which made headlines last year for raising the largest amount of funds in the online education sector till date. E-tail and marketplace are the dominant e-commerce category in the Chinese education e-commerce sector in the last five years.
USA as a market for EdTech or Education E-commerce Startups
The online education market in the USA has found a boost from leveraging the country’s status as a top international destination for education. There were more than 6 million students who enrolled in online education programs in 2016, exhibiting a growth rate of over 5% from 2015. The online education sector found a strong footing initially owing to the increasing number of high school dropouts. These students opt for full-fledged degrees as well as shorter specific courses to help in their careers. However, the industry continues to thrive despite the high rates of enrolment for high school education in recent years. The number of students enrolling for distance education courses went by 17.2% from 2012 to 2016. As more prestigious universities now actively offer online degrees and courses for students globally, the education e-commerce sector in the US is bound to grow impressively in the coming years helping it maintain its top position.
India as a market for EdTech or Education E-commerce Startups
According to a report by KPMG, the Indian online education market will likely touch $2 billion by 2021. The sector is expected to gain 8 million users by then, an impressive increase from 1.6 million in 2016. The largest segment in the education e-commerce segment in India currently is the reskilling and online certification and was valued at $93 million in 2016. The increased internet penetration combined with the affordability for owning smartphones is driving the online education market in India. Internationally recognized players like Byju’s are some of the top contributors to the industry shaping it with their innovative web and app-based learning solutions.
EdTech or Education E-commerce Trends for 2019
The education e-commerce industry is witnessing a surge in income and startups all over the world. Let us look at some of the top trends for the education ecommerce industry for 2019.
More learning platforms will be seen adopting a game-based approach to impart their modules in the most fun way. Gamification of the course material is one way to makea online learning materials stand out.
A multi-channel approach in offering learning programs has gained popularity in recent years and is expected to rise in 2019. The multi-channel approach includes tackling the subject matter through online as well as offline activities.
Several online education platforms are leveraging virtual reality and augmented reality as well to offer an impactful learning experience. A rise in this trend can be expected in the education e-commerce field in 2019 and the years following it.
The global online education market is expected to rise at CAGR of 10.26% in the next few years, helping it achieve new heights. According to a research report by YoStartups, there have been very few exits in the industry which can be a good sign of growth.
Know more about the funding patterns in the ecommerce industry here.
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