Why Do Edtech Startups Fail Despite Funding Boom
                     Why Do Edtech 
Startups Fail 
Despite GRE
EN
Funding Boom?
pakistan.desertcart.com
What is 
EdTech is a termE duTseedc hto? 
describe digital learning 
technologies that enhance or 
supplement education in the 
classroom. EdTech can include 
hardware like computers, as 
well as software designed to 
improve teaching and 
learning. Today's educators 
use EdTech tools to increase 
student engagement, improve 
educational outcomes, and 
encourage lifelong learning. 
pakistan.desertcart.com
What is 
It is one of the EnedwT etycphe?s of 
educational technology that 
has grown very fast during the 
pandemic time. Some of the 
biggest EdTech companies are 
Coursera, Byjus, and 
Unacademy providing digital 
education to thousands of 
students across the globe. As 
the world is moving online 
some customers also prefer to 
shop for stationery and 
school supplies online along 
pakistan.desertcart.com
with studying online.
Why do Education Tech Startups 
Fail?
      Edtech startups in India 
raised
more than $4.7 B in 2021, 
and four of them reached 
unicorn status during 2021-
22. So why are the B2C 
Edtech models in India 
struggling despite good 
funding to back them? 
Let’s examine some of the 
reasons why these B2C 
pakistan.desertcart.cEodmtech companies have not 
sustained over the years.
Unrealistic Pricing for EdTech 
Customers
Edtech startups are 
creating unrealistic pricing 
models in the Indian 
markets. They charge 
exorbitant prices and 
parents don't have much to 
afford them. The high     
customer acquisition cost 
(CAC) pushes Edtech 
players to increase their 
pricing, without realizing 
that the end customer; the 
parents have only as much. 
pakistan.desertcart.com
Unrealistic Pricing for EdTech 
Customers
Education is a critical factor 
for all Edtech companies, 
who are making a 
difference in the lives of 
children around the world. 
There is a huge opportunity 
for them in our economy     
but their current pricing 
models are not sustainable 
and don’t reflect the reality 
at all. 
pakistan.desertcart.com
Unrealistic Pricing for EdTech 
Customers
The education tech sector 
in India is a nascent 
industry. The players have 
only seen success and 
prosperity in the past few 
years, with no proper 
benchmarking, as to where     
they stand globally or how 
much they need to charge 
from their customers.
pakistan.desertcart.com
Inability to Understand their Core Customer 
Requirements
In India, education is one of the 
largest and most critical sectors 
with a unique market structure. 
One of the biggest challenges 
for Edtech firms in the country is 
focusing on growth at the 
expense of customer 
understanding. Start-ups can't 
see past short-term growth and 
underestimate customer 
dynamics. The higher education 
system in India is undergoing a 
transformation where student 
mobility and choice are 
pakistan.desertcart.com
increasing. 
Inability to Understand their Core Customer 
Requirements
However, most companies in the 
space seem to be too obsessed 
with short-term growth, to focus 
on building long-term durable 
relationships. They also tend to 
underestimate the competitive 
landscape and evolving 
customer requirements.
pakistan.desertcart.com
High Customer Acquisition Cost
      High customer acquisition 
cost (CAC) has been the 
buzzword of 2019 and it is an 
important metric that every 
startup should monitor closely. 
At the beginning of 2020, 
when Edtech was in full 
bloom, the cost of customer 
acquisition shot up by 70-80% 
of the revenue of the Edtech 
platforms from a humble 20-
25%. It is a simple dynamic, 
the marketing and branding 
pakistan.desertcart.caocmtivities for all B2C Edtech 
platforms remain the same; 
it's digital. 
Missing Contextual Integration
     The Edtech companies fail at 
providing a more contextual 
understanding of the subject. The 
best example to understand this 
would be the homework assignment 
provided by teachers. In such 
instances, students are expected to 
do homeschooling or invest more 
time in their academics outside of 
school. 
pakistan.desertcart.com
Missing Contextual Integration
     Some of these projects take 
weeks/months to complete, which is 
almost impossible for an average 
student, especially with all the 
unstructured time after school, 
weekends, and summers.
pakistan.desertcart.com
THANK 
YOU!!!
SEE 
YOUYou can find us at 
twitter !
@desertcartmena & 
support@desertcart.
com
pakistan.desertcart.com