1、SPECIAL REPORTPutting the Ed Back in EdTechSPECIAL REPORTContentsAbout L.E.K.ConsultingWere L.E.K.Consulting,a global strategy consultancy working with business leaders to seize competitive advantage and amplify growth.Our insights are catalysts that reshape the trajectory of our clients businesses,

2、uncovering opportunities and empowering them to master their moments of truth.Since 1983,our worldwide practice spanning the Americas,Asia Pacific and Europe has guided leaders across all industries from global corporations to emerging entrepreneurial businesses and private equity investors.Looking

3、for more?Visit .L.E.K.Consulting is a registered trademark of L.E.K.Consulting LLC.All other products and brands mentioned in this document are properties of their respective owners.2022 L.E.K.Consulting LLCAbout DC AdvisoryDC Advisory is an international investment bank committed to making a differ

4、ence.As part of an established global business we offer access to over 650 professionals in 22 locations throughout Asia,Europe and the US.Across 11 industry focused teams,we offer tailored,independent advice on M&A,debt raisings and restructurings,private capital and access to unrivalled Asia inves

5、tment knowledge.For more information,visit https:/ headwinds.4Survey parameters.5Summary findings.6Contrasting segments.7Key concerns.81.Supplemental K-12.92.JEE/NEET/other UG test prep.123.Adult test prep.154.Upskilling.18Conclusion.20Endnotes.22About the Authors.232 L.E.K.Consulting|DC Advisory SP

6、ECIAL REPORTIntroductionIndias EdTech sector was in the global education spotlight throughout 2018 and 2019.The sector has been the single largest driver of investment in education in India and has put the country firmly on the education map of the world as a genuine leader.While scaling,EdTech busi

7、nesses provided the innovations,program offerings and wide access that the population yearned for,creating a magnet for entrepreneurs,investors,and customers alike across the major segments supplemental K-12,Joint Entrance Examination(JEE)/National Eligibility Entrance Test(NEET)/other undergraduate

8、(UG)test preparation(prep),adult test prep and upskilling.And then COVID-19 happened.Whilst this became a tragedy globally,it also became a once-in-a-lifetime opportunity for EdTech.Restrictions on physical classrooms and the consequent mandatory move online proved to be a massive impetus for every

9、EdTech segment.Hitherto hesitant,skeptical,and tech-averse consumers became quick converts.The prolonged pandemic with its multiple waves only extended this streak.The growth opportunity led to accelerated investment flows total disclosed deal value surged between 2018 and 2021,moving from US$1.1 bi

10、llion to US$6.6 billion,while average disclosed deal value grew by a factor of nearly five,from just under US$6 million to over US$28 million in the same period,making India one of the top destinations for EdTech investors globally1.Valuation multiples have also grown,driven by the sweet spot Indian

11、 EdTech found itself in with a growing Total Addressable Market(TAM),low Customer Acquisition Costs(CACs),rising average revenue per user,expanding product suites and the prospect of expansion into foreign markets.Supplemental K-12 tutoring,test prep and upskilling segments have led this boom,follow

12、ed by extracurriculars and academic counseling.3 L.E.K.Consulting|DC Advisory SPECIAL REPORT2022 headwindsReopening of brick-and-mortar operations of offline providers finally got underway in early 2022 after the third pandemic wave tapered.Almost all pandemic-related restrictions have now been lift

13、ed,and learners of all ages are back in physical classrooms.This reopening has impacted new customer acquisition and retention rates of EdTech providers due to consumer screen fatigue and higher perceived learning effectiveness of offline services,some of which are discussed herein.As of July 2022,b

14、oth the number and value of deals have slowed down compared to 2021.While disclosed deal value stood at US$2.9 billion through July 2022,compared to US$6.6 billion for FY2021,average deal value has been more resolute,climbing to US$34.5 million from US$28.4 million2.Compounding decrease in customer

15、base and rising CACs is a funding winter precipitated by rising interest rates globally and the U.S.Federal Reserves tightening cycle.Several EdTech firms have announced austerity measures and layoffs,anticipating a slowdown and delay in funding rounds;some of these rounds may happen at valuations b

16、elow 2021 levels.Many of these firms are now exploring hybrid or offline operations to cater to customers insistent on a physical classroom experience3.Although macro or external factors like the funding winter and a return to physical classrooms have had a major impact on EdTech deal flow,the secto

17、r would do well to look at systemic and internal factors stymieing growth.This is what we turn to next.4 L.E.K.Consulting|DC Advisory SPECIAL REPORTSurvey parametersThrough a comprehensive survey,L.E.K.Consulting and DC Advisory aimed to understand the experience of EdTech users in India across four

18、 key segments:supplemental K-12,JEE/NEET/other UG test prep,adult test prep and upskilling.We surveyed 1000 parents and students,in June 2022,to identify and highlight the validity and relevance of the product offering,understand the customer experience,elicit areas of dissatisfaction,and probe cust

19、omers willingness to recommend/continue using the products.The survey findings contain insights that can help providers and investors better understand reasons for the current slower growth and identify strategies needed to sustain the growth impetus in India.User data and statistics cited here were

20、 generated from the survey,unless otherwise indicated.The survey respondents were:Supplemental K-12:Parents of school-going children using K-12 EdTech providers for tutoring,enrichment,supplemental content,etc.JEE/NEET/other UG test prep:Parents of school-going children using online test prep for co

21、mpetitive exams like JEE,NEET,The Common Law Admission Test(CLAT),The Common University Entrance Test(CUET),etc.Adult test prep:Adults(aged 18-34 years)using EdTech providers for preparing for exams like UPSC,Staff Selection Commission(SSC),The Graduate Aptitude Test in Engineering(GATE),Common Admi

22、ssion Test(CAT),Graduate Management Admission Test(GMAT),etc.Upskilling:Working professionals(age 21+)undertaking online upskilling and higher education courses5 L.E.K.Consulting|DC Advisory SPECIAL REPORTSurveyed supplemental K-12 and JEE/NEET/other UG test prep users were least satisfied,as indica

23、ted by their negative Net Promoter Score(NPS).On the other hand,adult test prep and upskilling segments were seen to have higher advocacylevels.Figure 1Net Promoter Score of supplemental K-12 and JEE/NEET/other UG test prep users4*Upskilling includes past and current usersSource:L.E.K.parents and st

24、udents survey N=1000,June 2022Summary findings30%14%20%37%Likelihood to renew-4%-3%9%-5%0%5%10%40%45%Upskilling*Supplemental K-12JEE-NEETAdult Test Prep42%Net Promoter Score(2022)Percentage of respondents,N=10006 L.E.K.Consulting|DC Advisory SPECIAL REPORTTo understand the stark disparity in satisfa

25、ction across segments,one needs to understand the use case for and target customer base of each segment.Both the supplemental K-12 and JEE/NEET/other UG test prep segments have a relatively well-established“brick-and-mortar”offering.The direct learning outcomes of these segments in the pre-COVID-19

26、physical classrooms offered a concrete benchmark for parents.Parents of learners across these segments have shown a preference for the“rigor”of traditional classroom programs and have indicated gaps in the online offering,particularly around doubt solving.Besides this,most platforms offered suppleme

27、ntal K-12 and JEE/NEET/other UG test prep classes that were asynchronous and/or had larger batch sizes in comparison to the other segments.Adult test prep and upskilling programs have relatively weaker or non-existent brick-and-mortar offerings against which online offerings could be benchmarked.The

28、se segments have seen significant pandemic-led expansion in online offerings.Furthermore,learner groups in these segments consist of adults who prefer the flexibility of online learning over brick-and-mortar formats due to ongoing professional commitments.Contrasting segments7 L.E.K.Consulting|DC Ad

29、visory SPECIAL REPORTThe four main areas of dissatisfaction that users expressed in the survey were:Key concernsThere is a significant disparity between segments in the weights toward each of the above concerns,which is expected given the context and background of each segment.For example,self-motiv

30、ated adults enrolling for test prep or upskilling programs would be better engaged during online sessions compared to lower-grade schoolchildren.On the other hand,program outcomes would be of greater importance for them in comparison to schoolchildren.Access-related concerns were uniformly ranked lo

31、w across segments thanks to ubiquitous device access and the availability of high-speed internet across the country.Segment-specific reasons for dissatisfaction are analyzed next.Offering/outcome-related issuesThese issues relate to matters such as lack of support in doubt solving,teacher/teaching m

32、aterial quality,large class sizes,lack of interaction opportunities with peers/teachers,lack of rigor,poor outcomes,low credibility,etc.Motivation,discipline,support-related issuesDistraction while online,lack of focus,need for studying with peers,inability to concentrate in home setting,etc.Pricing

33、-related issuesHigh prices or low perceived value for moneyAccess-related issuesLack of high-speed internet and device accessKey concernsFigure 2Four main areas of dissatisfaction that users expressedSource:L.E.K.parents and students survey N=1000,June 20228 L.E.K.Consulting|DC Advisory SPECIAL REPO

34、RTBackgroundMost offline supplemental K-12 learning in India is unorganized,consisting primarily of stand-alone tutors.Their operations were disrupted by COVID-19,so learners were forced to explore online options for supplemental learning.About 60%of respondents thus cited accessibility as the key a

35、doption driver.Besides accessibility,parents cited academic quality and product experience as key selection criteria.Reasons for dissatisfaction1.Supplemental K-1264%54%34%16%4%4%2%0%35%70%No monitoring during testsOffering-related dissatisfaction,online K-12 supplemental learning(2022)Percentage of

36、 respondents with offering-related issues,N=50Teacher qualityLack of proper channel for doubt solvingLarge class sizeLow number of classesThe user interface is not goodLack of interaction with teachers38%37%27%13%4%22%0%20%40%OthersReasons for dissatisfaction,online K-12 supplemental learning(2022)P

37、ercentage of respondents,N=132NoneMotivation/discipline-relatedOffering-relatedPricing-relatedAccess-relatedOffering-,pricing-and motivation/discipline-related issues dominate the dissatisfaction spectrum in supplemental K-12 education.Within offering-related challenges,a lack of proper channels for

38、 doubt solving,poor teacher quality and large class sizes are the primary reasons for dissatisfaction.Figure 3Key reasons for dissatisfaction with online K-12 supplemental education5Source:L.E.K.parents survey for supplemental K-12 users,N=2639 L.E.K.Consulting|DC Advisory SPECIAL REPORTThere is a c

39、orrelation between product offering and pricing dissatisfaction.Parents pay a price for online coaching that is similar to the price for offline coaching but feel that they are not getting a similar quality of service.Parents in lower-tier cities are particularly dissatisfied(54%of respondents citin

40、g pricing as a concern were from these cities),because they typically pay a lower fee for brick-and-mortar tuition compared to parents in higher-tier cities.Perception of the price paid and the extent of dissatisfaction depended on the pricing tierhigher satisfaction was seen among respondents payin

41、g INR2,000-3,000 per month compared to users paying INR 3,000-4,000 per month.This difference implies more dissatisfaction in cases where the online course is priced above offline coaching.The childs age was important in citing motivation/discipline-related issues.Forty-five percent of respondents w

42、ith children in K-2 ages reported motivation issues,compared to only 17%of respondents with children in G9-12 ages.NPS/likelihood to renewOnline K-12 supplemental learning providers also received a negative NPS of-4%,indicating they are not likely to be recommended by parents.The dissatisfaction wit

43、h the experience is also reflected in the low(30%)likelihood of renewing current subscriptions.Sixty-nine percent of respondents mentioned that COVID-19 influenced their decision to explore online classes,and only 13%stated they would be willing to renew the subscription if COVID-19-related restrict

44、ions were phased out.RecommendationsThe most significant offering-related issues identified are the lack of proper channels for doubt solving and poor teacher quality.These make it vital to introduce features that improve the response rate and reduce the time on doubt forums.Besides this,assigning d

45、edicated tutor support for doubt solving and tracking doubt resolution as a key performance indicator for user satisfaction can improve satisfaction.Pricing-related dissatisfaction is an outcome,at least partially,of offering-related dissatisfaction.Hence,better product offerings may also improve th

46、e perception of“value for money”and mitigate this concern.Additionally,lower-cost subscriptions for price-sensitive users could be considered.Motivation can be improved by using technology to track and report user engagement to determine/quantify the extent of engagement issues.Further,10 L.E.K.Cons

47、ulting|DC Advisory SPECIAL REPORTgamification of content for younger learners can help keep them more engaged.Besides this,a focus on better learning outcomes would alleviate several parental concerns.Investment insightLow NPS for this segment combined with subdued scores on price-value equation sug

48、gests that the supplemental K-12 segment is ripe for market disruption by newer,more innovative products that better address gaps in customer needs.11 L.E.K.Consulting|DC Advisory SPECIAL REPORTBackgroundThese services help older school-going children prepare for competitive exams like JEE,NEET,etc.

49、While the online medium has always been preferred as a supplemental/secondary prep method alongside offline test prep,COVID-19 pushed people to adopt online as a primary prep method.Both accessibility(26%)and product experience(29%)were the top criteria for selecting a service provider.Specific reas

50、ons for preference indicated in the survey were a better repository of materials/past exam papers(11%);detailed solution videos,etc.(11%);and broader academics and an updated curriculum(16%).Reasons for dissatisfaction2.JEE/NEET/other UG test prepReasons for dissatisfaction,JEE/NEET/other UG test pr

51、ep(2022)Percentage of respondents02030104029%16%44%23%1%27%50Offering-related issuesPricing-related issuesMotivation/discipline-related issuesAccess-related issuesOther issuesNoneMotivation/discipline-related and offering-related issues dominated the survey of online test prep program users parents,

52、with the former dominating clearly.From the 44%of respondents that reported“Motivation,discipline and support-related issues,”62%mentioned that their child likes to study and learn among Figure 4Key reasons for dissatisfaction with the online test prep program6Source:L.E.K.parents survey for JEE/NEE

53、T Test Prep Users,N=25812 L.E.K.Consulting|DC Advisory SPECIAL REPORTpeers and not alone.This lack of an immersive environment,combined with stronger offerings by offline providers including peer interaction opportunities,smaller class sizes,teacher/teaching material quality and channels for doubt s

54、olving led to the online test prep segment experiencing the highest levels of dissatisfaction across EdTech.Poor teacher/teaching material quality,lack of adequate interaction with teachers,lack of proper channels for doubt solving and large class sizes added further to the high levels of dissatisfa

55、ction.Students who used online as a supplemental source of test prep reported higher satisfaction compared to students using it as primary test prep,implying that the sought-after rigor was available to the former students through other avenues.Pricing is correlated to the use case,with students pay

56、ing less than INR 45,000 per year being more likely to use the service for supplemental purposes.About 27%of respondents paying more than INR 45,000 per year cited offering-related reasons for dissatisfaction,while only 11%paying less than INR 45,000 per year did so.Of the more than INR 45,000 per y

57、ear respondents,7%indicated poor teaching material and 8%indicated lack of rigor in online classes as reasons for discontinuing.These factors were not highlighted by parents paying less than INR 45,000 per year.NPS/likelihood to renewOverall NPS was negative(-3%)and the low level of satisfaction is

58、reflected in a low(14%)likelihood of renewing the subscription.Fifty-eight percent of respondents mentioned that COVID-19 influenced the decision to opt for online test prep classes,and only 24%will be willing to renew the subscription if pandemic restrictions are phased out.Supplemental resources i

59、nclude test series,crash courses and revision packages,among other options,and these are priced below INR 45,000 per year.Here,parent expectations are better met,and this subcategory has a higher NPS and a higher likelihood to renew versus full-fledged courses costing more than INR 45,000 per year.R

60、ecommendationsProduct features like Q&A forums,frequent doubt classes and one-on-one interactive doubt sessions can help mitigate motivational and offering-related challenges.Investment in technology to build features that help students stay engaged with online classes and to track student performan

61、ce and learning outcomes can also help overcome the primary challenges identified in the survey.However,these added services mean extra costs that could lead to heightened expectations,resulting in a dissatisfaction loop.13 L.E.K.Consulting|DC Advisory SPECIAL REPORTIdeally,service providers should

62、position themselves as a one-stop solution for the supplemental needs of test prep students,assisting them alongside their primary mode of education.The reliance of tier 3 students on online options is greater than students from larger cities.Service providers should focus on this user segment with

63、tailored and lower-priced offerings as these learners are a larger proportion of their TAM.Investment insightPricing-related issues mean that the perception of value for money is not sufficient,and incumbents will need to dramatically rethink pricing or offer substantially more value at the current

64、price points.Businesses will also need to radically re-engineer peer learning modules to plug this important product capability gap.14 L.E.K.Consulting|DC Advisory SPECIAL REPORTBackgroundThis category targets adults(aged 18-34 years)preparing for exams like UPSC,SSC,GATE,CAT/GMAT,etc.In India,prepa

65、ration for such competitive exams often tends to be localized in specific test preparation hubs.Pandemic restrictions and the consequent ubiquity of online courses provided students with a way to save time and money besides offering the convenience of avoiding relocation,access to material from anyw

66、here anytime,and better-managed access to a repository(cited by 12%of respondents).Before the pandemic,shifting and settling into a new city for preparation was a challenging task;the pandemic made it nearly impossible,providing an impetus to this category,which offered access to top educators from

67、anywhere and flexible course duration(18%)that helped aspirants balance work and studies.Reasons for dissatisfaction3.Adult test prepReasons for dissatisfaction,adult test prep(2022)Percentage of respondents0204051%2%34%6%5%23%6010%of all respondents from tier 3 cities compared to 2%in tier 1Offerin

68、g-related issuesPricing-related issuesMotivation/discipline-related issuesAccess-related issuesOther issuesNoneFigure 5Key reasons for dissatisfaction with adult test prep7Source:L.E.K.survey for adult test prep users,N=26015 L.E.K.Consulting|DC Advisory SPECIAL REPORTIssues with offering and motiva

69、tion/discipline are key reasons for dissatisfaction with adult test prep programs.Large class sizes,lack of teacher interaction opportunities,poor teacher quality and lack of rigor were the main offering-relating issues cited by respondents.Motivation/discipline issues in this segment are unique to

70、its user base.Most users are generally satisfied and more engaged given that adults are more amenable to the online format than schoolchildren.Motivation issues mostly involve online distractions,the desire to study with a peer group in a physical classroom and the inability to focus in a home setti

71、ng.Studying in a closed classroom with a group of students has been an integral part of the test prep system,and students reported finding it difficult to focus in an online setup.The use of tech to track user engagement with reward points and incentives for well-performing students can help in incr

72、easing motivation.Survey analysis suggests that as the price of the course increases,the emphasis on“availability of doubt solving,support forums”as a selection criterion increases(from 21%to 25%for courses above INR 45,000 per year).Students involved in courses of longer durations(24 months)are mor

73、e dissatisfied with the lack of proper channels for doubt solving(8%)as compared to students enrolled in courses of shorter duration.NPS/likelihood to renewOnline adult test prep providers have a positive NPS(9%),indicating higher user satisfaction relative to supplemental K-12 and higher education

74、test prep.The lower likelihood of renewal(20%)could be attributed to the short duration of programs.Tier 1 city customers are less likely to recommend a product(5%)as compared to tier 2 and 3 parents(16%),which may be a function of the fewer options available to the latter.Shorter-duration courses(1

75、3 months)and courses that run for 13-24 months have a high NPS(16%and 33%,respectively),while courses that run for more than 24 months have a very low NPS(-28%).NPS also increases as the price of the course increases,suggesting that higher-priced courses have a better value proposition.However,the l

76、ikelihood of renewal reduces as the price increases,which may be because higher-priced courses from premium providers have better outcomes,making renewal moot.On a related 16 L.E.K.Consulting|DC Advisory SPECIAL REPORTpoint,only 2%of respondents mentioned pricing-related issues,which suggests some s

77、cope for price increases,subject to managing participant expectations.RecommendationsService providers should focus on solving key product offering-related issues like large class size,lack of interaction and lack of rigor by leveraging and investing in technology and staff training.Such a step woul

78、d also take care of most motivation/discipline-related issues.Gamification to engage users with the content can also alleviate motivation/discipline-related issues.Some service providers have virtual assistants to help students with any doubts they face while doing an exercise or reading.The availab

79、ility of progress tracking and features that help teachers and students track their results and learning outcomes is characteristic of a goal-based learning system that some key players have adopted.Investment insightCustomers value the flexibility offered by EdTech,but there is room to improve teac

80、her quality and engagement,which should result in higher organic acquisitions and growth.17 L.E.K.Consulting|DC Advisory SPECIAL REPORTBackgroundUpskilling courses target working professionals(age 21+)undertaking online upskilling and higher education courses for career advancement.Since the key mot

81、ive behind this is to facilitate career growth and gain monetary benefits,the quality of content and the experience of learning from seasoned teachers are the most important factors for learners(24%weighted mentions).Reasons for dissatisfaction4.UpskillingReasons for dissatisfaction or potential fut

82、ure concern,upskilling program(2022)Percentage of respondents,N=13411%6%17%8%2%2%68%13%19%4%15%6%2%69%30%26%26%22%15%41%00700%Outcomes-related issues:16%Offering-related issues:15%Pricing-related issues:13%Motivation-related issues:13%Access-related issues:6%Other issuesNonePast usersCurr

83、ent usersProspective usersA majority(60%)of program alumni mentioned that they achieved tangible career advancement outcomes involving gaining skills and knowledge,career growth,professional development,and salary increases/promotions.However,analyzing Figure 6Reasons for dissatisfaction or potentia

84、l future concern with the upskilling program8Source:L.E.K.survey for upskilling users,N=247 18 L.E.K.Consulting|DC Advisory SPECIAL REPORTthis data by vintage indicates that the proportion of respondents satisfied on outcomes is higher for older cohorts,who perhaps had a choice of fewer but more spe

85、cialized and value-add programs.In comparison,newer cohorts have a wider choice that may consist of programs that are relatively weaker or marginal in the value they add.Further,prospective students are not as bullish about potential program outcomes.This could be an early indication of difficulty i

86、n providing desired outcomes at scale and something that investors and operators need to be mindful of.NPS/likelihood to renewUpskilling courses have a high NPS across both current(49%)and past(34%)users.About 37%of users have indicated willingness to enroll in another course by the provider in the

87、next five years.Sixty-three percent of the respondents believe that the skills required to be competent in their job will change in the next five years,driving their willingness to enroll in another program.Both current and past users paying more than INR 1.5 lac per program are more likely to recom

88、mend upskilling programs.However,36%of past and 19%of current users of such programs deemed them to be“extremely overpriced.”Degree programs were considered to be the most overpriced(45%).RecommendationCredibility and recognition are the most important factors for upskilling programs.Service provide

89、rs should leverage historical placements to improve employer advocacy.Credibility can be improved by launching courses accredited by or cobranded with reputed universities globally and by attaining national-level accreditation such as NSQF.Survey responses suggest some initial interest in income sha

90、ring agreements as a possible means to reduce participant concerns surrounding upskilling programs.However,the scalability of an income-sharing-driven business in India is mostly untested.Investment insightProfessional learning has shown the highest NPS and satisfaction with outcomes.Maintaining con

91、sistent career outcomes with increased scale shall be the key challenge facing the segment in the near term.19 L.E.K.Consulting|DC Advisory SPECIAL REPORTWhile outsiders see EdTech as a homogenous sector,there is much variety within it depending on the product/service offering.This variety also brin

92、gs with it diverse user sets and myriad concerns,as summarized below:ConclusionSupplemental K-12JEE/NEET/other undergraduate(UG)test prepAdult test prepUpskillingOffering/outcome-relatedSEGMENTCONCERNPricing-relatedMotivation/discipline/support-relatedAccess-related Inadequate doubt resolution Teach

93、er quality Class size Lack of interaction with peers/teachers Large class sizes Lack of interaction with peers/teachers Large class sizes Concerns around achievability of professional outcomes Lack of credibility among employers Low perceived value for money Parents unwilling to pay as much for onli

94、ne tutoring as they do for offline tutoringNo major concernsMinimal number of respondents cited lack of high-speed internet,laptop or full-time access to phone as major issuesNo major concerns scope for price increasesMost learners prefer to pay less than INR 1.5 lac for such programsNot a major con

95、cern Discipline and engage-ment primarily an issue with younger students Technology can be leveraged for better engagement Online test prep lacks rigor of offline classes;key barrier to adoption of online JEE/NEET/UG test prep Rigor of offline classes is missing Technology can be leveraged to track

96、learning outcomes38%31%51%29%27%13%34%44%13%6%6%23%37%13%2%16%Figure 7Concerns across key EdTech segmentsSources:L.E.K.research and analysis,based on;L.E.K.survey for upskilling users,N=247;L.E.K.survey for adult test prep users,N=260;L.E.K.parents survey for JEE/NEET Test Prep Users,N=258;L.E.K.par

97、ents survey for supplemental K-12 user,N=26320 L.E.K.Consulting|DC Advisory SPECIAL REPORTThe sector has seen rapid growth in revenue and funding in the past five years,accelerating since the onset of COVID-19.This growth has slowed in 2022 due largely to extraneous factors(reopening after lifting o

98、f pandemic restrictions and a tight funding environment)but also partly due to internal factors such as the offering-,pricing-and motivation/discipline-related issues highlighted in this report.Ultimately,success requires not just accelerating investment in customer acquisition but also achieving en

99、hanced customer satisfaction and retention.This combination of high“capital lead”and“happiness lead”can result in enduring growth and success for the sector.The EdTech sector is still in an evolving and high-growth stage,and if these internal issues are addressed,momentum can endure.Moreover,the pot

100、ential of a hybrid online-offline model is untested and could hold the key to putting the“Ed”back into EdTech in a more comprehensive format.21 L.E.K.Consulting|DC Advisory SPECIAL REPORTEndnotes1Source:Search criteria for information pulled from Private Circle unless otherwise indicated:Private Cir

101、cle database;Segment is Ed-Tech;Geography is India;Sub-segment is Tutoring or Test Prep or Upskilling or Digital content or Extra-curricular or LMS or Employment Services or Academic counselling;Excludes deals with undisclosed funding amounts;Announced between 01/01/2018 31/12/20212Source:Search cri

102、teria for information pulled from Private Circle unless otherwise indicated:Private Circle database;Segment is Ed-Tech;Geography is India;Sub-segment is Tutoring or Test Prep or Upskilling or Digital content or Extra-curricular or LMS or Employment Services or Academic counselling;Excludes deals wit

103、h undisclosed funding amounts;Announced between 01/01/2018 31/12/20213Source:How offline became the new online for Indias ed tech unicorns4Survey question:How likely are you to recommend your online provider to a friend or colleague,where 0 means“not at all likely to recommend”and 10 means“very like

104、ly to recommend”?5Survey question:Why are you not satisfied with the online mode of study for your child?6Survey question:Why are you not satisfied with the online mode of study for your child?7Survey question:Why are you not satisfied with the online mode of study?8Survey question:Past users:Why we

105、re you not satisfied with the online upskilling/online Higher Education program?Current users:Why are you not satisfied with the online upskilling/online Higher Education program?Prospective users:Why are you concerned about enrolling in an online upskilling/online Higher Education program?22 L.E.K.

106、Consulting|DC Advisory SPECIAL REPORTAbout the AuthorsL.E.K.Danish FaruquiPARTNERL.E.K.Consultings Global Education PracticeD.FHarshita KainASSOCIATE CONSULTANT L.E.K.Consultings Global Education PracticeH.KAshwin GoelPRINCIPALL.E.K.Consultings Global Education PracticeA.GVikram MehtaASSOCIATEL.E.K.

107、Consultings Global Education PracticeV.M23 L.E.K.Consulting|DC Advisory SPECIAL REPORTNitin BhatiaMANAGING DIRECTORDC Advisory Nitin.BRushabh VoraASSOCIATE VICE PRESIDENTDC AdvisoryRushabh.VGaurav MittalDIRECTORDC AdvisoryGaurav.MDC Advisory24 L.E.K.Consulting|DC Advisory SPECIAL REPORTDisclaimerThi

108、s article has been prepared by,L.E.K.Consulting and DC Advisory(together,the“Authors”)solely for information purposes and is not intended to function as a“research report.”In particular,this means it is not intended,nor does it contain sufficient information,to make a recommendation as to the advisa

109、bility of investment in,or the value of,any security.Additionally,this article does not constitute or form part of,and should not be construed as,an offer to sell,or a solicitation of any offer to buy,or any recommendation with respect to,any securities.You should not base any investment decision on

110、 any such materials;any investment involves risks,including the risk of loss,and you should not invest without speaking to a financial advisor.The views expressed herein are based on the observations,experience and belief of the Authors,as well as assumptions made by,and information available to,the

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113、he sectors discussed herein.A significant portion of the analysis discussed in the article is based on the results of the survey discussed in this article and is subject to the limitations and parameters described in this article.Reproduction of any information,data or material contained herein(“Con

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