The Indian edtech industry has experienced a dramatic resurgence in funding during the first half of 2024, marking a notable 96% increase compared to the same period last year. From January to June 2024, Indian edtech companies attracted $164 million in investment, up from $81.9 million in the first half of 2023, according to market intelligence firm Tracxn.

With over 11,000 active edtech companies, India now ranks as the third-highest funded edtech market globally, trailing only behind the United States and China. While funding levels are still below the peak reached in 2021, the impressive growth in 2024 signals renewed investor interest despite broader economic challenges and a shift back to traditional classroom education.

Neha Singh, Co-founder of Tracxn, attributed this resurgence to the sector’s adaptability. She noted that despite a general decline in funding since 2021, the Indian edtech sector has demonstrated considerable resilience. Investors remain engaged, particularly as edtech companies integrate traditional learning methods with digital innovations.

The continued demand for online learning platforms and professional upskilling programs is driving growth in the sector, even as many schools across India have resumed in-person classes. These areas address gaps in offline education and sustain interest in digital learning solutions.

Bengaluru continues to be a major hub for the Indian edtech industry, capturing over 64% of the total funding raised. Delhi and Mumbai follow as significant contributors to the sector’s financial activity. Despite facing challenges, the industry benefits from strong demand, technological progress, and supportive government initiatives such as the National Education Policy 2020.

However, not all sub-sectors are thriving. The test preparation segment, which once attracted significant investment, has seen a marked decline. Leading investors, including Blume Ventures, Wellfound, and LetsVenture, are now shifting their focus towards other areas such as professional education and vocational training.

Although only one funding round in 2024 surpassed $100 million—down from multiple high-value rounds in previous years—the long-term outlook for India’s edtech sector remains positive. Late-stage funding continues to play a prominent role, and startups are evolving to address the shifting needs of learners.

As technology-driven education solutions gain momentum, the Indian edtech market is poised for further innovation and growth. With a strong foundation and ongoing digital advancements, the sector is well-positioned to meet the increasing demand for flexible, high-quality education in the years ahead.