The EdTech sector is exploding worldwide!
What’s more interesting is that certain companies in the EdTech sector hold a significant market share. The EdTech market is growing due to several factors, including corporate training, higher education, K–12, and preschool. Many investors eye EdTech companies for startup funding as they are proliferating despite the fierce competition in the market.
A smart classroom is a state-of-the-art learning space furnished with interactive and digital instruments to facilitate dynamic and interesting learning. Interactive whiteboards, digital projectors, and multimedia resources are common aspects of these classes, which enable professors to present instructions while promoting interaction.
With these advancements and requirements required in the education sector, the size of the EdTech market worldwide is anticipated to grow at a CAGR of 26.32%. This implies it may reach $467263.92 million by 2027, demonstrating limitless growth potential (Pappas, 2023). Technological developments, the demand for individualized education, and government programs to support educational technology infrastructure are some of the drivers driving this market. Thereby, businesses that integrate these driving factors have been able to gain the eye of investors for startup funding as well.
Based on new developments such as the adoption of AI and the effects of COVID-19 on online learning and remote employment. One thing is certain: the EdTech sector has much to offer in the coming years. Thus, eyeing the top EdTech firms globally has the potential to help other startups in this sector understand how to become a key player in the market.
Let us explore which growing EdTech startups are on the top…
Top 5 Global EdTech Companies
#1 Kahoot!
An international educational platform company that aims to enable everyone to reach their maximum learning potential, especially kids, students, and workers.
Established in 2012 by Morten Versvik, Johan Brand, and Jamie Brooker! This was first introduced in private beta at SXSWedu in March 2013. Presently, over nine million educators worldwide utilize it, along with hundreds of millions of students and families. Surprisingly, 97% of Fortune 500 corporations also utilize it.
The platform is used by teachers at various stages of a unit or lesson. Some teachers use it as an “exit ticket” to collect data on how much the students learned during the session, or they use it to see how much the students already know about a topic before introducing it.
According to a 2021 literature review, Kahoot! can generally “positively affect learning outcomes from the perspective of interaction” in the learning process. Enhancing students’ interactions with teachers and classmates through Kahoot! can have a good impact on their participation, attendance, and academic achievement (Zhang and Yu, 2021). Thereby, companies like Kahoot! in the EdTech sector have been able to gain the eye of investors when it comes to startup funding.
In 2020, Kahoot! added Actimo, an app for corporate learning, to its growing family of learning apps, which also featured DragonBox and Poio since 2019. According to the firm, in 2021 and 2022, 2 billion people across more than 200 countries and regions participated in 300 million sessions hosted on the Kahoot! platform with more than 30 million active users.
#2 Chegg
An EdTech company based in California that was founded in 2005. It offers both digital and physical textbooks, educational content, and student services including online tutoring. The company’s goal is to improve student results while making higher education more accessible and affordable.
Chegg declared in August 2022 that the UK and Canada would be added to its university platform. The experts involved in this company respond to subscribers’ questions step-by-step and around the clock, often within fifteen minutes. Additional helpful services that Chegg provides to students include writing assistance, math problem-solving, and bibliography creation tools.
#3 BYJU
Over 150 million students worldwide receive learning solutions from BYJU’S, a global EdTech enterprise, Established in 2011. BYJU’S has its headquarters located in India and operates in over 100 countries globally. Offering language learning programs in several languages.
This has indeed become a prime example of India’s EdTech industry by transforming hardship into opportunity. The pandemic accelerated the uptake of online education even as it brought educational institutions to a grinding halt.
Bengaluru-based Byju’s, which capitalized on the demand for virtual education, rose to prominence as a major worldwide player in the EdTech sector in October 2022, valued at an astounding 22 billion dollars. The businesses that make up the BYJU’S Group cater to a diverse clientele of learners, from young children just beginning their schooling to professionals seeking to advance their careers.
#4 Yuanfudao
China’s Yuanfudao was established in 2012 and serves over 400 million users nationwide, including K–12 after-school tutoring, preschool support, and adult education services. Its goal is to give every Chinese student equitable access to the best learning resources simply and effectively.
The company has provided tutoring to over 200 million pupils since its founding. Approximately two million of the students using its platform are subscribers. Research indicates that Yuanfudao serves around 14.79 million students annually who sit for the exam to advance to senior high school. Their unique selling point is providing live streaming services for home tutoring and online schooling. A variety of reputable, experienced, and skilled real-name instructors from both domestic and international backgrounds lead the tutorials (Law, 2023).
In addition to coaching, Yuanfudao provides an online question-and-answer database and an app for math arithmetic problem-solving. In 2014, the corporation built an AI research institute. Additionally, the business was able to integrate speech recognition and handwriting recognition into its current photo search.
#5 Coursera
A worldwide online learning platform that was founded in 2012 by Daphne Koller and Andrew Ng. It provides access to online courses and degrees from prestigious universities and businesses. The organization has collaborated with over 7,000 universities, corporations, and governments, and about 110 million students. In collaboration with its partners, Coursera sponsored more than 115 certification programs for individuals who might have been impacted by the worldwide pandemic in 2020.
An entire higher education system working with government institutions can strengthen industry collaboration by utilizing Coursera to open up new opportunities for staff, faculty, and students to grow, diversify, and expand employer talent pipelines, and create a more competitive workforce. Investors love such companies that provide global services when it comes to providing startup funding.
Conclusion
Only when utilized carefully and with a thorough understanding of the tools and best practices can EdTech be beneficial. Success requires many education service providers to partner with an EdTech company that shares their values. Therefore, being a company in the EdTech industry has a high market potential and the capability to attract investors for startup funding. Many investors in platforms like EquityMatch are eyeing EdTech startups that solve major pain points in this industry.
