Please fill the form below.
For sales queries, call us at:
If you've got powerful skills, we'll pay your bills. Contact our HR at:
EdTech is nothing new, although that is how the majority of write-ups published on the internet would like you to believe. To break it down for the understanding of all, an ecosystem where technology is deployed to assist the delivery of education is referred to as EdTech.
Come to think of it, even a conventional computer lab at a 90s something school qualified as an EdTech.
Yet, few people realized back in the 90s that the Industrial revolution 4.0 would pack more gigabytes in a smartphone than computers. Therefore, if the devices of today dawn a new-age, compact, and pocket-friendly outfit, shouldn’t the same rule apply to education and its delivery methods.
Turns out that it does and that is one of the benefits of education app for kids and organizations and why entrepreneurs are throbbing the gates of venture capitalists to fund the future, or shall we say the present, of 21st-century teaching, EduTech.
The EdTech app business models – both educational apps for kids and organizational learning – have shaped up to be one of the most lucrative (for innovators) and luring (for investors) models of businesses over the years. It’s one of the few industries that could survive this COVID-19 pandemic and honor its promising growth. What makes us say that?
Do you now see the window of opportunity in Edtech, or due to it, for introducing technology enablement in education? It is a sector where the opportunity cost to miss out on an idea could be zillions. But the readers should be warned against the deadly Fear of Missing Out i.e. FOMO syndrome.
If you are full of Edtech startup ideas or even education startup ideas, great, but it has to be approached systematically. Anyone searching for an education app development company, or for that matter, freelance educational app developers must first classify their business model for education startups.
Before agreeing on the terms and conditions, entrepreneurs must probe for answers to the following questions, which can even be the answer to why investors who are looking to fund an EdTech model are asking:
Online business opportunities appear profoundly great on whiteboards but turn into a nightmare when you get to the execution stages. Consider the following sub-verticals that e learning startups are modeling their educational app development portfolio on. You can also read them as the education app ideas which are bound to be successful in the time to come.
Consider the following sub-verticals that EdTech startups are modelling their portfolio on offers:
Technology is affecting every aspect of our lives and changing them by the day. But it’s not just our life, its businesses as well that are transforming and can’t afford to look away. The Organization for Economic Co-operation and Development (OECD) projects that 1 billion jobs, that is approximately 1/3rd of all jobs in the world, would be transformed by technology in the upcoming decade.
According to the ‘World Economic Forum Annual Meeting’, by 2022 around 42% of all core competencies deemed essential for jobs are expected to change. Such a fast-forward and unavoidable upskilling revolution can be delivered feasibly only through technology.
As per the Education Data Initiative, schools in the US spend an average of $12,624 per pupil, which is the fifth-highest amount per pupil among the 37 other developed nations in the Organisation for Economic Co-operation and Development (OECD).
According to reports by Reach Capital’s analysis of data from Pitchbook, during the the first six months of 2021, U.S.-based education technology companies raised over $3.2 billion in investment capital.
But could it be a fluke? What if coincidently there had been a hype bubbling somewhere thanks to venture capital rumor mills. We can run this assessment through a litmus test.
For our experiment, we choose three well-established education startups that are opportunistically building their Edtech app business models. A measure to gauge public demand for their services would be to see how their virtual education startups have played out during the COVID-19 pandemic.
It is clear from the observations that Edtech businesses despite an unexpected catastrophe have not just survived until now, but thrived. Predicting the future would be immature but taking stock of the situation we can definitely point in a few directions where education mobile app development appears most likely to augment resources.
The devices are getting smarter and more efficient. IoT is casting a thorough web of interconnectivity assuring big data generation and enabling Artificial Intelligence to identify improvement measures for autonomous customer experiences (CX). Speaking of which, the CX will be enhanced by Mixed Realities adding a new dimension to EdTech and catalyzing its ascendency.
The Coronavirus pandemic has teased signs of speeding Blockchain’s adoption as a result of which the distributed ledger technology could be used for decentral and secure data management.
Gen Alpha (those born after 2010) could be the first to taste the introductory iterations of the technologies taking Edtech next level.
As of writing, approximately 4.88 billion people in the world have access to the internet making up 62% of the world population. Cybersecurity Ventures places the total internet users at 6 billion by 2022 by which time the total world population is expected to reach 8 billion. By 2030, total internet users are expected to reach 7.5 billion which could be 90 percent of the then 8.5 billion world population.
Digital textbooks will be a starting point in the exercise to structure E-learning. Tracking online learning patterns would be a revelation in maximising the tools required for a multi-sensory, fulfilling experience.
Virtual and Augmented Realities are shortening the distance between studying and experiencing something. In a nutshell, immersive learning is the process of imparting education/learning vis-a-vis simulations and AI.
Augmented Reality commands a higher likelihood of a wider adoption within the Edtech market earlier than VR due to its enablement on smartphones.
People have begun accepting Voice-Enabled devices as a staple part of their homely chores.
It typifies conversational AI assisting humans and the application of it in the Education industry could soon be underway.
Cognii is a great example with its conversational AI that has products for K-12 students and corporate professionals with open-format responses to improve critical thinking.
Adaptive learning is a learning delivery method where algorithms customize the teaching as per the student.
Robotics is also gaining momentum in education management.
Blockchain’s decentralized fundamentals could be momentous in upgrading antiquated education infrastructure. At the same time, it can incentivize students to put in their best efforts and be rewarded for, say procuring a major degree in a discipline. Not to mention, it can manage data, securing it in immutable ways for student records to be archived.
Gamification, like immersive learning, is a good utilization of technology in Education since it involves students in the process. This technique isn’t new and has been in use for 20 years. Because it is so practical, today’s online learning systems make extensive use of it.
You must be thinking, what is it that makes it so successful? Then simply put, you know learning is always challenging, whereas playing is simple and enjoyable. Thus, the majority of people believe that gamification encompasses a wide range of techniques that can enhance the user experience.
Gamification includes two key elements.
Now that we have delved into what makes the EdTech sector a profitable online education business model and what can be expected from its future, the next plan of action for an entrepreneur should be to prepare for a success-guaranteed entry in the sector.
Schools, universities, coaching institutes, and other traditional institutions faced enormous challenges during pandemic. This led to the increase in scope of education. To ensure business and learning continuity, the learning class had to swiftly upload all of their work on the internet, making access to education easy. Here are some edtech business models that have been already there but have boomed due to the pandemic crises.
It’s an appealing concept for startups since it allows you to quickly build brand trust and position yourself as a niche leader.
For example, Coursera began by offering free courses on a number of topics with the option of purchasing a certificate. The company soon rose to prominence as an edtech powerhouse, thanks to $210 million in funding.
This technique allows you to generate a lot of momentum quickly and make your product available directly to your end consumer without the usage of intermediaries. The downside of the principal-agent problem in education is that your users aren’t your buyers.
When you don’t have your own content, you set up an Amazon-style marketplace where educators can sign up to sell their work. This strategy allows educators to promote their course to a large audience while the platform receives a portion of the revenue.
Udemy is a well-known Edtech company that has shifted to a marketplace model. Udemy is an online marketplace that allows businesses and individuals to offer their courses online. It is now worth over $3 billion. Udemy takes 50% of the course cost and provides a full array of tools for monetizing, marketing, and producing these courses and their associated learning materials.
The top-down or institutional model is a more traditional method of selling to schools through district executives. The target market volume is determined based on the projected penetration rate and the market size is first calculated.
Once the desired market volume has been determined, a strategy for achieving the potential revenue is devised. This works by a district or an area head making a single purchase for all of the schools under its control. The top-down paradigm has the advantage of allowing districts to sign big contracts.
The consumer approach is a new online education business model that allows schools to try a product for free before charging families to continue using it at home. This concept is best suited to businesses that provide things that children can use independently. In this situation, schools effectively serve as lead generators for consumer adoption.
With this concept, it’s critical to establish a “product loop” between school and home, in which teachers use the product with students in the classroom and then advise parents to have their children use it at home.
The benefit of this strategy is that schools prefer free (high-quality) items, which can increase user adoption, and parents are more likely to follow instructors’ suggestions for home use of technology. The uptake is particularly evident in edtech products for toddlers and kindergarten students.
A unique and intriguing approach is one in which neither the school nor the parents pay. Instead, a company is brought in as a sponsor and helps pay for product placement, which is usually done as part of a corporate social responsibility (CSR) project.
The benefit is that when you offer a fantastic product to schools for free, utilisation will be relatively high, which is all that matters to the sponsor. The sponsors have the opportunity to build brand awareness and goodwill for their company.
Sponsored items, such as GoNoodle, can help a company’s image tremendously. This Edtech product gives teachers access to a large video library that encourages pupils to be active, creative, and enjoy learning. To give their goods for free, GoNoodle worked with significant institutions like Tonies, No Kid Hungry, Nicklaus Children’s Hospital, and many others. This contributes to the creation of an egalitarian learning environment in which the impoverished can study alongside their wealthier counterparts.
Following the global outbreak of the COVID-19 pandemic, EdTech has grown in popularity.
EdTech improves the traditional education system by improving pedagogy and the learning process. EdTech’s target audience is not restricted to the education sector but it also includes employed people in huge organizations for corporate learning. To create a successful edtech business model you should follow these instructions.
Determining the actual cost of an education app has never been easy due to a lot of factors, including the app’s complexity, features, functionality, the operating system used, development time, and the cost of the development team, among others.
However, depending on the company you choose, the cost of establishing an education app with basic functionality might range from $15,000 to $25,000+. Still, this is a general estimate, which can vary depending on the number of hours it will take to build.
You can also read and acquire knowledge regarding mobile app development cost.
Using technological means to deliver education (education + technology) is called Edtech. Any startup in this space using emerging technologies such as AI, Robotics, VR, AR or Blockchain is an Edtech Startup.
EdTech market is set to grow at a 2.5x proportion between 2019 to 2025, reaching $404 billion in global expenditure
The largest companies in this space are Unicorns like ByJu’s and Udemy. Their strategy for the first few years was to capture market share and become a niche-leader. However, currently, both the companies run profitable businesses.
The global EdTech industry will evolve at a fast-forward pace. Venture capital infusion in the fastest-growing Edtech companies, or Edtech Startups, particularly in the US, China & India, points to the formation of parallel growth sectors between the West and Asia.
We say this based on the analysis of all the Global Edtech Unicorns. Online learning has not just come out of its cocoon but established itself as a wide network space of emerging technologies. There are many edtech startups that have failed and risen.
One of the reasons startups fail, or for that matter most startups fail, not just in this sector but anywhere is because they overpromise by building hype, in the absence of reliable data. BYJU’s, Udemy, Coursera, and Udacity, some of the most valuable Edtech companies in the world have managed to reach the pinnacle by timely identifying technological applications to bring down the cost of education. To that extent, education software development companies must enter the market with solutions that include remote access, multi-device compatibility, multi-language support, and 24/7 uptime.
Every education app developer for startups should ask the investors and entrepreneurs to focus on amalgamating tech, not for the sake of it, but because they have the opportunity to create an equitable distribution of knowledge that respects the sovereign pace of understanding of each individual.