Indian Edtech Start-Ups Stage a Revival with 5x Funding Rise in H1 2025

After a slowdown and uncertainty post the Byju's crisis, India's edtech industry made a robust revival in the first half of 2025. Activity on the investment front increased more than fivefold from the year ago, with study-abroad service, workforce training, and AI-based language remain the areas of focus for start-ups.

After slowing down and increasing doubt after the Byju's drama, India's education technology  industry rebounded well in the first half of 2025. Investment in edtech start-ups increased more than fivefold from a year ago during the same period. It raised $120 million in 11 deals during Janury-June, data by Venture Intelligence quoted by The Economic Times revealed.

The industry's raise was $22 million through seven deals during the same period last year, according to the report. Still, this figure is less than the $230 million of funding raised during the first half of 2023.

A majority of the funding went into start-ups providing study-abroad solutions, workforce upskilling platforms, and AI-driven ventures venturing into language learning, as well as regional education.

The space is also set to grow more as PhysicsWallah is set to list. This is a revival of momentum following the industry's reboot after the ongoing insolvency process of Byju's meltdown.

Indian Edtech Start-Ups

PhysicsWallah has submitted revised draft papers with markets regulator Sebi (Securities and Exchange Board of India) to mop up ₹3,820 crore through an initial public offering (IPO) for growth and expansion plans.

The IPO has a fresh issue of equity shares aggregating ₹3,100 crore and an offer for sale of up to ₹720 crore by promoters, as per the revised draft red herring prospectus (UDRHP) submitted on Saturday.

Both promoters, Alakh Pandey and Prateek Boob, will offer shares aggregating ₹360 crore each through the OFS. Currently, both own 40.35% stake each in the company.

The edtech provides competitive exam test preparation courses on JEE, NEET, GATE and UPSC, and upskilling courses, all through online channels (YouTube, website, and apps), technology-enabled offline facilities, and hybrid centres, which provide a combination of online classes with on-site assistance.

Also, Softbank-funded edtech unicorn Eruditus recently closed a refinancing of up to $150 million headed by MARS Growth Capital, a joint fund of Liquidity and Japan's biggest bank MUFG Bank. CollegeDekho has also raised ₹40 crore from debt marketplace Recur Club.

Former COO of Unacademy Vivek Sinha's edtech venture Emversity has raised $5 million in its pre-Series A round from existing investors Z447 and Lightspeed Venture Partners. And even Byju Raveendran also made the announcement that the founder will introduce Byju's 3.0 once insolvency proceedings are over.

Some of the leading start-ups in this category are Byju's and Unacademy, among others. This category also experienced a subsequent growth in its funding during 2021, followed by a decline.

As of August 2024, this category raised $151 million in funding, a 28% rise compared to the same time in 2023, based on data from Tracxn. The test preparation category is another category that is picking up pace.