Overseas education companies join student flight from US classrooms

The Trump administration's immigration policy is not only affecting students who are looking to study higher education in the US, but also companies serving this demographic.

In an attempt to mitigate the effects, education startups are opening new fronts in other parts of the world like the Middle East, Asia and Europe, and providing value-add services like loans and other assistance to students, founders added.

As per a November 2024 report by Frost & Sullivan, Indian students studying abroad were estimated at 2.5 million by 2030 – from 770,000 in 2019 and an estimated 1.65 million in 2023 – with the US, UK, Australia and Canada being the most preferred countries. 

But during the Trump era, the number of students traveling to the US is declining.

As per a report by Bloomberg, following data analysis provided by the US International Trade Administration, foreign students arriving in the US decreased 28% year-on-year in July 2025, with Indian students decreasing 46%.

This has impacted overseas education startups specifically that serve the US market like AdmitKard and Leap.

Numerous new startups have emerged over the past few years to serve foreign-bound students, which until a few months ago had a CAGR of 7%.

Sudeep Laad, global education practice managing director at LEK Consulting, said 50% of all Indian students abroad go to the top four nations, and the US and Canada take approximately half of that. The other two top destinations are the UK and Australia.

Business under pressure

Rachit Agarwal, AdmitKard's founder, explained that 45% of students traveling to Canada and the US contributed to around 35% of the company's revenues. That segment has been hit.

He had said there were roughly 150,000 Indian students going to the US, and that number has decreased to 60,000 now. This drop is visible in the business of AdmitKard, and the rate of approvals has dramatically fallen. The company is facing cost pressure while dealing with the changing scenario.

"It is an absolute bloodbath," Agarwal said to ET.

Another of the founders, who wished to remain anonymous, added that education loan startups targeting students who are relocating to the US are also affected since many of the students cannot get visas in time and others are reconsidering their options.

Crizac, which listed recently and bought Raj Consulting last year to grow its US business, during an earnings call last month stated that there is uncertainty over the US, with thousands of students being affected.

Gaurav Jain of Kaizenvest, an education sector-focused PE fund, said some of the players in the market could experience a fall in revenues or shut shop, as they rebase by increasing geographies and providing value-added services.

AdmitKard's Agarwal added some of the startups, including theirs, have already raised concerns with the external affairs ministry, which has pledged assistance to smoothen the process of expanding in Europe, and opening up more destinations in the Middle East. 

Recalibration

AdmitKard is opening in the UK, which would take 18-24 months, and expanding more destinations at a focus on cost, which has faced pressure, according to Agarwal.

Akshay Chaturvedi, the founder of Leverage Edu, whose biggest market is the UK, told geopolitics is a gigantic risk involved in the business.

His company is also diversifying, increasing both the source and destination markets, meaning students and universities they represent.

India is presently LeverageEdu's largest student market but it is experiencing demand from Dubai, Africa, Nepal and in South Asian nations like Malaysia and Vietnam, Chaturvedi said. Destination-wise, the firm is looking to expand into Dubai, Australia and Canada as well, he added.

Crizac in its August earnings call indicated that there is increasing demand for new or alternative places, like South Asian students traveling to Dubai or Chinese students traveling to Malaysia and Singapore.

Kaizenvest's Jain explained that certain companies are seeking deeper relationships with their present clients by providing value-added products like loans.