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Page 1: Market Roundup | Online Learning Platforms in India

Prepared for

Market Roundup | Online Learning Platforms in India

Edition – 1

April 2021

Page 2: Market Roundup | Online Learning Platforms in India

Page 2

About the report

Foreword

We are living in unprecedented times.

The COVID-19 pandemic, which hit the world in 2020, has changed the world’s operating order. The impact of COVID-19 on global economy has been adverse, with the Indian GDP estimated to

have shrunk by 7%+ in CY2020. However, the pandemic has proved to be a water-shed moment for the digital economy.

With the increased need for social distancing becoming the norm, digital consumption in India has increased rapidly in 2020 on the back of increased online activity across sectors – from social

networking to entertainment. Given the specific impact on the education sector with most schools and colleges closing down, the EdTech industry in India was well positioned to benefit from the

changing consumer preferences.

At the onset of the pandemic, several large EdTech learning platforms in India provided free trial access to their learning content. The user base, reach and engagement on these learning platforms

increased manifold on back of closure of schools, physical coaching / test preparation centers. Several top players rapidly expanded their product categories and capabilities via organic and

inorganic routes.

The last 12 months have also seen strong financial and strategic investor activity in the sector. EdTech sector led the PE/VC funding in 2020 with ~22% share of investments. Backed by strong

funding, large incumbent platforms also chose strategic M&A route to fuel their growth and expand into ancillary offerings.

As we embark on the road ahead, we believe that this is an opportune time to provide readers with a backdrop / context of EdTech industry in India, a summarized view of the top learning platforms

in the industry and their performances in the past 12 months, review the financial and strategic deal activity in the sector and assess the key growth / investment themes for the sector in the next 6-

12 month period.

We hope you will find this an interesting read.

Note for the reader

This report is a first in a series of periodical industry round-ups on the Indian EdTech industry with the aim of providing the reader with a backdrop in which Indian EdTech learning platforms are

operating, tracking the performance of key industry players, and providing a view on the key deal activity in this space. This issue focuses on online K-12 learning and online test preparation segments.

Amitabh Jhingan, EY LLP

Partner, Education Sector Leader

Page 3: Market Roundup | Online Learning Platforms in India

Page 3

Agenda

Market dynamics and trends

Player analysis

Deals landscape

Page 4: Market Roundup | Online Learning Platforms in India

Page 4

Executive summary1

Page 5: Market Roundup | Online Learning Platforms in India

Page 5

-7.7

3.4

-9.6

-8.8

GDP

Agri, forest &

fisheries

Industrial

Services

While COVID-19 led to a general economic slowdown, the pandemic has accelerated the adoption of digital platforms, especially across various consumer facing sectors

COVID-19 pandemic, which hit the world over a

year ago changed the world’s operating order, with

the Indian GDP estimated to have shrunk by 7.7%

between April 2020 and September 2020

Industrial and services sectors were severely

impacted

Ind

us

try

Growth

Lockdown accelerated digital adoption with data

usage in India in CY20 increasing by 34% vis-à-

vis CY19

The time spent on mobile and application

downloads also witnessed increases of 31% and

21% respectively in CY20 (vs.CY 19)

12 15.7

CY2019 CY2020

Data usage (GB per person per month)

3.5 4.6

CY2019 CY2020

Time spent on mobile (in hours)

20 24.3

CY2019 CY2020

Application downloads (in bn)

Apps across various consumer categories

witnessed accelerated adoption

Number of subscriptions for videos saw a

considerable increase along with the

number of subscribers over the year

92%

90%

75%

57%

54%

85%

84%

69%

47%

51%

Messenger Chats

Social networking

Entertainment

Games

Music

CY2020

CY2019

Video subscriptions

(in mn) CY2019 CY2020 Growth

Subscribers 11 29 2.5x

Subscriptions 21 53 2.5x

Source: Secondary research, Ministry of Finance – Govt. of India, EY-Parthenon analysis

Growth rates

Apr 2020 – Sept 2020

Growth in app usage (CY2020)

Page 6: Market Roundup | Online Learning Platforms in India

Page 6

Nation wide lockdown Unlock 1.0 Unlock 2.0 Unlock 3.0 Unlock 4.0 Unlock 5.0

25/03/2020 – 07/06/2020 08/06/2020 01/07/2020 01/08/2020 28/08/2020 15/10/2020 – present

Only essential services allowed Re-opening of

malls, hotels,

restaurants,

places of

worship

Relaxations in

night curfews

Increase in

domestic flights

and trains

Gyms and

yoga centres

opened

Night curfew

revoked

Metro services

allowed; larger

gatherings allowed

Fear of second wave in Mar 2021

resulting in reinstatement of night

curfews and restrictions in several

states

Impact on mainstream education sector

Schools/ Colleges shut

Board exams postponed

No exams for classes 1 to 8

Last SSC paper cancelled

NEP 2020 approved Schools allowed to

partially open for staff

Class IX – XII students

voluntarily allowed in Non-

containment areas

Opening of schools at state’s

discretion

Fear of second wave in Mar 2021

resulting in temporary closures of

schools in several states

Impact on Online learning platforms -- Total page views of top 100 websites in Education segment in India

1.0

1.4

2.0 1.7

2.2 2.1 2.4 2.5 2.1 2.3

2.4

2.1

Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21

COVID lockdowns and restrictions adversely impacted the traditional education sector; however, the events accelerated the growth and funding for Indian EdTech sector

Mar’20 Feb’21

Source: Secondary research, News Reports, Similarweb data, EY-Parthenon analysis

~150% growth in page views of top 100 education websites in 6 months (Mar – Oct 2020), of which 100% growth was in 2 month lockdown period

(Mar-May 2020)

Consistent performance on monthly page views during post COVID period indicating user stickiness in platform access To

tal p

ag

e v

iew

s

Page 7: Market Roundup | Online Learning Platforms in India

Page 7

Penetrate deeper into “Bharat”

Vedantu - introduced micro-courses, acquired

doubt-solving platform for penetrating into Tier 3/

4 cities

Most platforms launched multiple state board

offerings to penetrate state markets

Acquire for growth and new capabilities

Byju – used M&A to diversify into coding, doubt-

solving feature and hybrid UG test prep

Unacademy - strengthened its leadership in test-

prep with multiple acquisitions, acquired

capabilities to focus on employability /

placements

Looking beyond traditional segments

Byju’s acquisitions in coding, gamification, and

Unacademy’s acquisition in employability aimed

to drive growth in newer and non-traditional

segments

Several large players were quick to tap the post-COVID opportunities by diversifying into new product-market segments via organic and inorganic means

Byju’s in talks to acquire US-based reading platform Epic”

TechCrunch, Mar’21

Vedantu acquires doubt solving app Instasolv”

Mint, Feb’21

Toppr launches Toppr Codr to teach K-12 students coding”

CNBC TV18, Jul’20

Edtech Platform Toppr Claims 100% Growth In Paid Subscribers In Last Quarter”

Inc42, Nov’20

Airtel partners with Vedantu to provide classes via DTH channels at ₹4 per day”

Mint, Nov’20

Byju’s adds free live classes for students amidst COVID-19 lockdown”

TOI, Apr’20

Unacademy entered the coveted Unicorn Club after raising $150 million in a round led by Softbank.”

Entrepreneur, Sep’20

Unacademy Preps For Acquisitions With $50 Mn Secondary Round From Tiger Global, Others”

Inc42, Jan’21

Unacademy Acquires TapChief To Focus On Higher Education, Placements With Unacademy Pro”

Inc42, Jan’21

Byju’s to buy medical, engineering entrance coaching leader Aakash in $1 billion mega deal”

ThePrint, Jan’21

BYJU's acquires code training app WhiteHat Jr for $300 million”

Mint, Aug’20

Toppr partners Ryan Group to roll out its integrated platform 'School OS’”

CNBC TV18, Aug’20

Key post-COVID growth themes

Source: Secondary research, EY-Parthenon analysis

BYJU’s

Unacademy

Vedantu

Toppr

Page 8: Market Roundup | Online Learning Platforms in India

Page 8

How effectively can the post-COVID

reach and engagement translate into

revenues across various scenarios?

What are the new growth opportunities

for EdTech platforms in the future?

How are unit economics / profitability

likely to change under various scenarios?

How will the future growth and

engagement on the learning platforms vary

across the potential scenarios?

The trajectory of the pandemic will have a significant impact on the short-term future of EdTech; players and investors need to ponder on several open questions

FY22 the next 6-12 months

How will EdTech

evolve in the short-

term – next 6-12

months?

Prolonged COVID

Large scale adoption of online learning

Mainstreaming / precedent-setting of online delivery of

education

Continued growth in PE/VC investments

Minor 2nd / 3rd waves

Gradual resumption of physical learning

Wider acceptance of hybrid learning – potential for

B2B2C models, especially on K-12

Non-critical learning needs to be delayed / shifted online

Quick recoveries

Potential drop in m-o-m EdTech growth

Competition from offline players

Increased focus on monetization of current base

Key questions to answer

1

Scenarios

Source: EY-Parthenon analysis

What will be the impact on strategic M&A

and consolidation within the industry?

2

3

4

5

Page 9: Market Roundup | Online Learning Platforms in India

Page 9

Player analysis 2

Page 10: Market Roundup | Online Learning Platforms in India

Page 10

There are several large online learning platforms in India, with most of them focusing on B2C K12 and test prep segments of the market

Total funding raised (US$ million) Online K-12 / Test Prep Players

Product categories and language

coverage1

Proposition and pricing2

Reach of these learning platforms3

Engagement metrics4

Social media engagement5

We have analyzed the performance of these top four K12 / test

prep centric players on multiple parameters including:

The above analysis has been based on multiple sources including

details available at the websites / apps, secondary search and

standard third party databases such as Similarweb, Alexa rankings,

RivalIQ, Tracxn, and other such databases.

Data as on March 31, 2021

Source: Tracxn, EY-Parthenon analysis

The Indian EdTech landscape has a long tail of smaller players –

a total of 4,450 startups in 2020 with over 1,150 being

shut down and many more coming up

Player analysis

2,770

440206 107 69 67 50 39 28 23

Byju

's

Un

aca

de

my

Ve

da

ntu

Top

pr

Next

Ed

uca

tion

Cue

ma

th

Dou

btN

ut

Le

ad

Scho

ol

Extr

am

ark

s

Cla

ssp

lus

We have shortlisted the top 4 players (by funding raised) for a deeper assessment B2B-centric players

B2C-centric players

Player Valuation

US$

As on date

Byju’s 13 bn March 2021

Unacademy 2 bn Jan, 2021

Vedantu 600 mn July, 2020

Toppr 150 mn July, 2020

Page 11: Market Roundup | Online Learning Platforms in India

Page 11

*Note: Toppr offers coding classes for K-1 to K-12 on its Toppr Codr platform and Vedantu offers coding classes for children aged 6-12; Toppr also offers the Nepal Examination Board

**Note: Languages offered: Unacademy - English, Hindi, Marathi (NTSE, Maharashtra board), Maithili (Maharashtra board K-10) and French (CBSE K-9 and K-10); all courses are also offered in Hinglish; Byju’s and Toppr – English; Vedantu – English and Hindi

Source: Company websites, EY-Parthenon analysis

Toppr has the widest coverage across grades and boards in the K12 segment; Byju’s offerings cover key central and state boards in India

Player analysis – categories and language`s (K12)

Byju’s Toppr* Unacademy Vedantu*

OfferingsNo. of

languages

No. of

boardsOfferings

No. of

languagesNo. of boards Offerings

No. of

languages

No. of

boardsOfferings

No. of

languages

No. of

boards

Pre K and K-5 ✓ ✓ K-5 only X ✓Reading classes for ages

4 – 6 + K1-5

Grades 6 to 8

CBSE ✓ 1 ‒ ✓ 1 ‒ ✓ 2 ‒ ✓ 2

State boards ✓ 1 9 ✓ 1 20 X ‒ ‒ ✓ 21

1-on-1

Other boards

(IGCSE, IB, ICSE)✓ 1

1

Only ICSE ✓ 1 3 X ‒ ‒ ✓ 2

3

IB/IGCSE:

only 1-on-1

Grades 9 to 10 ✓

CBSE ✓ 1 ‒ ✓ 1 ‒ ✓

2

(+ French

as a

subject)

‒ ✓ 2

State boards ✓ 1 9 ✓ 1 20 ✓ 4 1 ✓ 2 1

Other boards

(IGCSE, IB, ICSE) ✓ 11

Only ICSE ✓ 1 3 X ‒ ‒ ✓ 2

3

IB/IGCSE:

only1-on-1

Grades 11 to 12

CBSE X ✓ 1 ‒ ✓ 2 ‒ ✓ 2

State boards X ✓ 1 20 X ‒ ‒ ✓ 21

only 1-on-1

Other boards

(IGCSE, IB, ICSE)X ✓ 1

3

Commerce:

only ICSE

X ‒ ‒ ✓ 23

only1-on-1

Scholarship exams, Olympiad and

standardized testsX ✓ 1

NTSE, IMO,

SAT, etc. ✓ 3 NTSE X

► Toppr’s portfolio of offerings has widest coverage (~20 state boards across grades 6-12) addressing requirements of ~85%+ class X state students in India

► Byju’s portfolio of offerings covers central and 9 key state boards across grades 6 to 10 addressing requirement of ~40% of students in India

► Vedantu offers coverage across central and 1 state board (Maharashtra) via its offerings

► Unacademy offers 4 languages for grades 9-10, and also provides coverage of 1 state board (Maharashtra)

Byju’s offers its K 11-

12 course as a

bundle with the JEE /

NEET package

-

-

-

Page 12: Market Roundup | Online Learning Platforms in India

Page 12

Unacademy is the largest learning platform in terms of number of test prep categories and language offerings

Player analysis – categories and languages (test prep)

Source: Company websites, EY-Parthenon analysis

Byju’s Toppr Unacademy* Vedantu

OfferingsNo. of

languagesNotes Offerings

No. of

languagesNotes Offerings

No. of

languages**Notes Offerings

No. of

languagesNotes

UG entrance exams

JEE ✓ 2 ✓ 1 - ✓ 2 - ✓ 2

NEET ✓ 2 ✓ 1 - ✓ 2 - ✓ 2

BITSAT X - - ✓ 1 - ✓ - - X - -

CLAT X - - ✓ 1 - ✓ 2 - X - -

CA, CS, CMA X - - ✓ 1 - ✓ 2 Excl. CMA X - -

Others (VITEEE, IELTS, UPSEE

WBJEE etc.)X - - ✓ 1

VITEEE, WBJEE,

UPSEE etc. ✓ 1 IELTS X - -

PG entrance exams 8 8

CAT X - - X - - ✓ 2 X - -

IIT JAM X - - X - - ✓ 2 - X - -

GATE X - - X - - ✓ 2 - X - -

NEET PG X - - X - - ✓ 1 - X - -

GRE X - - X - - ✓ 1 - X - -

Government entrance exams

UPSC ✓ 2 - X - - ✓ 3 - X - -

Railway X - - X - - ✓ 2 - X - -

State PSC X - - X - - ✓ 11 - X - -

SSC and Bank X - - X - - ✓ 5 - X - -

CET (MHT CET, KCET, AP EAMCET,

TS EAMCET)X - - ✓ 1 - ✓ 5 - X - -

Defence (CDS/AFCAT/CAPF,

NDA/Airforce X & Y/Navy)X - - ✓ 1 NDA ✓ 2 - ✓ 2 NDA

Teaching (NET + TET) X - - X - ✓ 2 - X - -

Others (ESE, BCECE, KEAM) X - -✓

1BCECE,

KEAM✓ 2 ESE X - -

*Note: Unacademy offers courses for Ujian Tulis Berbasis Komputer (UTBK), an entrance test to higher education which is carried out by the Lembaga Tes Masuk Perguruan Tinggi (LTMPT), a HE Entrance Test Institute; State PSCs include MPSC, TNPSC, Kerala PSC, Karnataka PSC, DSSB, GPSC, OPSC,

JPSC, MPPSC & VYAPAM, APPSC & TSPSC, BPSC, CGPSC, WBPSC, PPSC, HPSC, JKPSC, HPPSC, UPPSC & UPSSSC and RPSC

**Note: Languages offered: Unacademy - English, Hindi, Malayalam, Tamil, Gujarati, Bengali, Telegu, Kannada, Marathi, Sanskrit, Odia; all courses except for JEE, NEET, GATE, NEET PG, GRE, CET and ESE are also offered in Hinglish; Byju’s and Vedantu – English and Hindi; Toppr – English

--

► Toppr has a wide coverage across multiple UG test prep categories and several Government exam categories

► Byju’s has focussed on the biggest categories (JEE, NEET) in UG Test Prep and has also established presence in large Government exam category (UPSC)

► All learning platforms have presence in UG test preparation (JEE, NEET focus)

Page 13: Market Roundup | Online Learning Platforms in India

Page 13

Vedantu and Byju’s offer their courses at relatively higher prices than Toppr and Unacademy on a per subject basis and offer a higher degree of personalized attention

Byju’s Toppr Vedantu Unacademy

CBSE class 9 price (INR) Streaming / SD card =

26,000 (for 2 subjects)

Advanced =

30,000 (12 subjects)

Ultimate =

40,000 (12 subjects)

Pro Lite: 36,000 (4 subjects)

Pro Classic: 48,600 (5 subjects)

Pro Plus: 66,600 (5 subjects)

Plus: 15,000 (9 subjects)

Iconic: 28,000 (9 subjects)

2-year JEE course price

(INR) SD card: 135,000

Advanced: 70,000

Ultimate: 85,000

Pro Lite: 78,299

Pro Classic: 1,08,000

Pro Plus: 1,62,000

Plus: 56,000

Iconic: 1,00,000

Pricing model

Package-based

pricing with annual

upfront payment

Package-based pricing with

upfront payment

Two variants one with an

additional “ask” feature

Package-based pricing with an

option to pay monthly in the Pro

Lite package; upfront payments

in other packages

Three variants, additional

features such as unlimited

doubt-solving offered in the

Classic pack and personal tutor

in the Plus pack

3-24 months subscription plans

with an option to pay in parts or

upfront

Two variants, one offering

additional features such as live

doubt solving and personal tutor

Core value proposition/

advantages

(Website)

Conceptual clarity

through visualization

Personalized learning

Unmatched individual

attention

Platform for all your learning

needs

Widest syllabus coverage

Live & interactive

Best teachers

Adaptive teaching

Convenient & safe

“Netflix for Live Education”

Democratize access to high

quality education

Player analysis – pricing

► Byju’s and Vedantu’s offerings are more premium priced in comparison to the offerings of Toppr and Unacademy

► In K12 - average pricing of ~INR 12,000 – INR 15,000 per subject vs. INR 2,000 – INR 4,000 for Toppr and Unacademy

► In Test-Prep – average pricing of ~INR 100,000+ for 2-year JEE course, vs. INR 60,000- INR 100,000 for Unacademy and Toppr

► Most players offer value adding pricing features such as discounts and EMI. For e.g. Unacademy offers no cost EMI on 6 months and above subscription plans. Similarly, Toppr

offers EMI on courses costing >INR 15,000.

Source: Company websites, EY-Parthenon analysis

Note: Data as on 26 March 2020

Page 14: Market Roundup | Online Learning Platforms in India

Page 14

Toppr’s wide coverage esp. in K12 segment has helped in high traffic generation; Toppr and Byju’s record high monthly visits and unique visitors

Player analysis – reach metrics

Source: SimilarWeb, EY-Parthenon analysis

We

bsit

e v

isit

s

(mobile

+ d

eskto

p)

Un

iqu

e v

isit

ors

(mobile

+ d

eskto

p)

Toppr had multiple product launches in Q2 (Answr,

Codr, OS) driving higher website visits

Nov-20Apr-20 Jul-20May-20 Sept-20Jun-20 Oct-20Aug-20 Dec-20 Jan-21 Feb-21

Toppr and Byju’s

have constantly been

able to generate the

highest traffic (visits,

and unique visitors)

vis-à-vis other learning

platforms on back of

their marketing

campaigns and

product launches

Toppr and Byju’s

have constantly been

able to generate high

traffic (visits, and

unique visitors) vis-à-

vis other learning

platforms

Typical drivers for high

traffic include wide

coverage of grades

and boards (esp. on

K12 segment), multiple

product offerings

(learning platform,

coding, doubt-solving,

etc.) to the same

target segment,

consistent marketing

campaigns

K12 segment in India constitutes of ~260 mn+ students / learners of which ~92 mn+ are in private unaided schools*

Toppr and Byju have a wide coverage (in terms of grades x boards) across K12 segment as well as have ancillary offerings (Coding, Doubt-Solving)

Vedantu, which is a premium priced proposition, has coverage of central and 1 state board

Unacademy’s coverage in K12 segment is limited, given its historic focus on a UG, PG, Government test prep segments

Unacademy

Byju’s

Toppr

Vedantu

Page 15: Market Roundup | Online Learning Platforms in India

Page 15

Unacademy has the highest number of MAUs and DAUs on its platform; Byju’s records higher number of MAUs and DAUs compared to other K12 centric platforms

Player analysis – engagement (stickiness)

Source: SimilarWeb, EY-Parthenon analysis

Ap

p M

AU

s

Unacademy

Byju’s

Toppr

Vedantu

Nov-20Apr-20 Jul-20May-20 Sept-20Jun-20 Oct-20Aug-20 Dec-20 Jan-21 Feb-21

Toppr and Byju’s

have constantly been

able to generate the

highest traffic (visits,

and unique visitors)

vis-à-vis other learning

platforms on back of

their marketing

campaigns and

product launches

Unacademy is the

largest platform in

terms of App DAUs

and MAUs over the

past 12 month period

High MAU and DAU

are driven by user

engagement and

stickiness; this, in turn,

is driven by app

features (UX, UI,

navigability, content

quality) as well as by

consumer preferences

(relevance of offerings

to the market,

seasonality in the

need, user

demographics, other

factors)

Ap

p D

AU

sD

AU

:MA

U

(App)

Multiple government tests (SSC, Bank, Railway,

Defence) announced in the Oct-Dec period

Unacademy scores the highest in terms of stickiness of the offerings with strong MAUs, DAUs and DAU : MAU ratios.

High user stickiness for Unacademy is driven by its relevant suite of offerings for users (esp. on Government test prep segment), unique rock star

faculty model, and relatively shorter test preparation periods (esp. for government and PG test prep segments)

Byju’s score well on MAU and DAU engagement metrics as well on back of its engaging content and personalised attention

Page 16: Market Roundup | Online Learning Platforms in India

Page 16

Unacademy and Vedantu have higher engagement in terms of page views and average daily time spent on site

Player analysis – engagement (interactivity)

Unacademy’s large

number of product

categories on test

prep segment

results in better user

engagement /

interactions

resulting in higher

visit duration, page

views and low

bounce rates

Parameter Byju’s Toppr Unacademy Vedantu

Average Daily Time

Spent on Site (mm:ss)02:46 03:53 05:45 05:31

Average daily page

views per visitor (#)2.03 3.02 4.39 3.34

Bounce Rate 67.6% 59.4% 45.8% 52.9%

Data as on March 30, 2021 | Last 90 day average

Source: Alexa, EY-Parthenon analysis

Unacademy and Vedantu score higher in user engagement / interactions in terms of visit duration and page views

This is driven by app-specific features (UX, UI, AI/ ML based recommendation engine, engaging content), delivery model (Live vs. recorded, degree of personalised

attention) and user profile (user demographics, needs, relevance of product offerings, etc.)

Page 17: Market Roundup | Online Learning Platforms in India

Page 17

Byju’s and Toppr report highest number of followers on Facebook; Unacademy has the highest number of social media followers and YouTube channel subscriptions

Player analysis – engagement (social media)

Source: Rival IQ, EY-Parthenon analysis

1,150 1,270 1,040 143

0

1,000

2,000

Fa

ce

bo

ok

fo

llo

ws (

‘00

0s)

1 6 119 70

1,000

2,000

Tw

itte

r fo

llo

ws

(‘0

00

s)

134 33959

800

1,000

2,000

Insta

gra

m

follo

ws (

‘00

0s)

3.7

0.4

44.36.6

YouTube, has been a important platform for educational content and many EdTech

platforms such as Unacademy started as a YouTube channel.

Note: Followers as on 26 March 2021

To

tal so

cia

l m

ed

ia f

ollo

ws

(‘0

00

s)

1,285 1,3092,118

230

0

1,000

2,000

3,000

Byju’s Toppr Unacademy Vedantu

Byju’s Toppr Unacademy Vedantu

Byju’s Toppr Unacademy Vedantu

Byju’s Toppr Unacademy Vedantu

Byju’s Toppr Unacademy Vedantu

88K 687K 160K ~3K

Engagement (March 2021)

Note: Subscribers on YouTube across 12 channels of Byju’s, 13 channels of Toppr, 177 channels of Unacademy &

32 channels Vedantu as on 31 March 2021

Source: YouTube, EY-Parthenon analysis

YouTube subscribers – cumulative across channels (million)

Page 18: Market Roundup | Online Learning Platforms in India

Page 18

Deals landscape 3

Page 19: Market Roundup | Online Learning Platforms in India

Page 19

COVID-19 induced lockdowns accelerated the growth of online learning platforms; EdTech funding witnessed 4.6x growth in 2020 compared to 2019

Deal landscape

742

325

1,833

2018 2019 2020

+464%

Source: Traxcn, EY-Parthenon analysis

Induced by countrywide lockdowns, 2020 played a pivotal role for the EdTech industry – this is further underpinned by the value of VC/PE deals in EdTech

Investments (by value) in the year grew by ~460% from 2019 – highest in terms of value till date

The year was also characterized by the highest ever volume of consolidation and M&A activity

Active investors included marquee names such as SoftBank, Silver Lake, Sequoia, Blume, BlackRock, etc.

PE

/VC

fu

nd

ing

Str

ate

gic

M&

A

Spike in M&A

activity – primarily

led by string of

acquisitions by

Unacademy & Byju’s

COVID-19 augmented

EdTech growth in 2020 –

leading to a ~460% hike

in funding

22%20%

12%

7%

6%4% 5%

4%

20%

FinTech

EdTechHyperlocal

Social

Logistics Tech

B2C

Others

Gaming

Online

classifieds

EdTech led the quantum of PE/VC

investments in India in 2020

1828

59

20202018 2019

200

10

416

20192018 2020

95

20

20192018 2020

US$8.18 b

1.All 2020 numbers exclusive of Jio deals

# of deals in EdTech (#)Investments in EdTech (US$ m)PE/VC funding in 2020 (by sector)

Page 20: Market Roundup | Online Learning Platforms in India

Page 20

Funding in 2020 was predominantly late stage funding for the four large edtech learning platforms to fund their organic / inorganic growth

Date Investee Investor(s)Deal value

(US$ m)Deal rationale

Mar-21 Byju’s

MC Global edtech investments. B Capital, Tiga

Investments, TCDS (India) LP, Arison Holdings,

XN Exponent Holdings, Baron Emerging Markets

Fund and Baron Global Advantage Fund

460 Funding acquisitions/ Inorganic growth (Acquisition of test

prep player Aakash)

Feb-21 DoubtnutLupa, SIG, Sequoia, Omidyar, Waterbridge,

Redwood, Surge31

Expansion of the product to cover more languages, boards,

etc. and launch of paid courses

Feb-21 SplashLearn Owl Ventures, Accel 18 Scaling of recently launched tutoring vertical and towards

research and development

Dec-20 Cuemath Falcon Edge, Sequoia, CapitalG, Aspada 40 Launch of the product internationally – improving presence

in the US

Nov-20 Unacademy

Tiger Global, Dragoneer, India Internet Fund,

SoftBank, General Atlantic, Steadview, DF,

Sequoia

86 Focused at strengthening position through acquisitions,

diversification into K12 and potential international expansion

Nov-20 Byju’s T. Rowe Price, BlackRock 200 Focused on growth through acquisitions, improving

penetration in lower tiers, category expansion to improve

coverage and development of hybrid models of deliverySept-20 Byju’s

Silver Lake, BlackRock, Tiger Global, General

Atlantic, Alkeon, Sands Capital, Bond Capital501

Sept-20 UnacademySoftBank, General Atlantic, Facebook, Sequoia,

Blume Ventures, Nexus, IIFL Finance154

Focused at strengthening position through acquisitions,

diversification into K12 and potential international expansion

Aug-20 Byju’s DST Global 122 To fuel business expansion goals and also meet working

capital needs

Jul-20 TopprMitul Devchand, Helion, Kaizenwest, Foundation

Holdings, Eight Road Ventures47

Development of AI-based Toppr School OS – unifying in-

school and after-school learning

Jul-20 VedantuCoatue, Tiger Global, GGV Capital, Omidyar,

WestBridge, 360insights, The Rainmaker100

Development of content and refining technologies for live

delivery

Unacademy Byju’s Vedantu TopprSource: Traxcn, Mergermarket, Secondary research, EY-Parthenon analysis

Deal landscape

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Top EdTech players were also actively engaged in strategic M&A for growth, establishing presence in ancillary markets, and acquiring strategic capabilities

Date TargetDeal value

(US$ m)

Stake

acquired

Valuation

(US$ m)Strategic benefits

Unacademy – (only key deals highlighted) in addition to these, Unacademy acquired ~4 more companies to strengthen its leadership

Mar-21 Handa Ka Funda NA Leadership in digital learning in test-prep (esp. CAT, Banking exams)

Feb-21 TapChief 13.7 Entry into ancillary market of job discovery and placement support to

strengthen Unacademy Pro offering

Dec-20 NeoStencil Consolidate leadership in test-prep and in Tier II/III cites

Jul-20 Mastree 5 51% 13.3 Diversification and entry into K12 learning space

Jul-20 Prepladder 50 100% 50 Strengthen presence in medical test-prep for NEET PG, FMGE, etc.

Byju’s – (only recent key deals highlighted) in addition to these, Byju’s acquired ~7 more companies in K12 learning, gamified learning and career support

Apr-21Aakash

Educational~1000

Strategic merger to benefit from leadership and strong track record in UG test

prep and ability to provide hybrid learning models

Feb-21 Toppr 150 150 Access to a wide syllabus across state boards and test prep categories

Feb-21 Scholr 2.5 Strengthen capabilities in doubt resolution to target Tier 3/4 segments

Sept-20 LabInApp NA Strengthen technical capabilities in virtual lab simulation for K12 segment

Aug-20 Whitehat Jr. 300 100% 300 Ancillary offering to cross-sell and strengthening presence in the US

Vedantu

Feb-21 InstaSolv 67% Strengthen capabilities in doubt resolution to target Tier 3/ 4 audiences

Deal landscape

Source: Traxcn, Mergermarket, Secondary research, EY-Parthenon analysis

- Announced1.Acquisitions between Jul’20 and Mar’21 considered

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The key investments themes in EdTech are likely to continue to be around monetizing ‘Bharat’, serving global demand, model innovations and market consolidation

Monetizing “Bharat”

opportunity

Global foray – market

entry

Innovative delivery models

123

Portfolio expansion4

With top learning platforms so far being focussed on the “top of the pyramid” (esp. Tier 1/ 2 cities), the

platforms are now looking to expand and tap opportunities in Tier 3/ 4 cities to achieve scale

The players are looking at various levers – sachetization of offerings, vernacularization, usage of free

“doubt resolution” platforms to garner traffic and win share from the unorganized market

EdTech players are increasingly looking at expanding beyond domestic shores

Byju’s acquisition of Whitehat Jr. and Osmo for establishing presence in the US market

Unacademy recently launched test-prep curriculum for Indonesia

Online platforms are associated with inherent limitations around peer learning, track record, learning

outcomes, etc.

Players are innovating and exploring hybrid models of delivery – Byju’s acquires Aakash with an aim to

provide the convenience of online learning with offline immersions

Players are also innovating on technology – with gamification, adaptive learning, etc. to improve user

experience and learning outcomes

Acquisitions provide EdTech players a medium for quick inorganic growth.

While they help strengthen leadership in respective fields, they also enables players to quickly

diversify by building capabilities in complementary offerings (K12 capabilities for test-prep providers

and vice versa)Source: Secondary research, EY-Parthenon analysis

Deal landscape

Key investment theses

Page 23: Market Roundup | Online Learning Platforms in India

Page 23

Terminologies

• The sum of all unique visitors (all devices)

on mobile and website per analyzed month

• Average percentage of users who view

only one page before leaving the website

over the past 90 days

• The average number of pages a viewer

views in a given session over the past 90

days

• The average time on the website over the

past 90 days

• Sum of all visits on mobile and website for

the past 30 daysMonthly visits

• Number of application downloads

• Sum of all daily active users on the app

Monthly

unique visits

Average time

spent

Pages per

visit

Bounce rate

Downloads

DAU

• Sum of all monthly active users (users who

log in even once in the given month) on the

appMAU

• Billion

• Compounded annual growth rate

• Year on year

• Million

• Kindergarten to Grade 12K-12

• Gross domestic product

• Calendar year

Bn

Mn

Y-o-Y

CAGR

GDP

CY

• Under graduate / post graduateUG / PG

• National Education Policy

• Business to consumer

• Business to business

• Secondary School Certificate

• Private Equity / Venture CapitalPE / VC

• US Dollar

• Indian National Rupee

NEP

SSC

B2B

B2C

US$

INR

• Mergers & acquisitionsM&A

Page 24: Market Roundup | Online Learning Platforms in India

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