Education sector in India

by Dave

In Indian culture, teachers and knowledge have always been held in high regard. Mathematicians in ancient India made fundamental contributions in number theory (zero, the decimal system, numerals, binaries), geometry, infinite series (foundation of calculus). That long tradition and comfort with abstract conceptual thinking explains modern India’s success in IT – and not merely knowledge of English.

The core market for education services in India, particularly schools and colleges, is highly regulated and intended to be run on a not-for-profit basis, thus keeping venture capitalists (VCs) away. But supplementary and tertiary segments, though fragmented, offer benefits of potential scale in a country where families spend up to 20% of disposable incomes on education.
Last week’s Intel Capital funding of education assessment firm Vriti Infocom followed a raft of similar deals earlier. Blackstone Group, New Vernon Private Equity and Deutsche Securities pooled Rs94 crore into Chennai-based e-learning firm Everonn Systems India Ltd in May and earlier this year KPCB (Kleiner Perkins Caufield and Byers) and Sherpalo Ventures funded education portal Earlier venture fund rounds in the sector were at Bangalore’s TutorVista Global Pvt. Ltd, Mumbai e-learning services firm 24×7 Learning Solutions Pvt. Ltd, New Delhi-based exam preparation tutorial Career Launcher India Ltd, Hurix Systems Pvt. Ltd and Educational Initiatives Pvt. Ltd, among others.