Formal Education

K12
B2B 1
B2B2C / Unbundling 3

Informal Education
Pre-Schools / Day Cares K12
B2B 5
B2B2C / Unbundling
6 8
Marketplaces / Aggregators
B2C 7 9

EdTech Market

Formal Education
K12
B2B $57 Mn
B2B2C / Unbundling $113 Mn

Informal Education
Pre-Schools / Day Cares K12
B2B
$48 Mn
B2B2C / Unbundling
$1.5 Bn
Marketplaces / Aggregators
$95 Mn
B2C

Education Market

Formal Education
K12
B2B
$46.8 Bn
B2B2C / Unbundling

Informal Education
Pre-Schools / Day Cares K12
B2B
$1.9 Bn
B2B2C / Unbundling
$15.2 Bn
Marketplaces / Aggregators
$0.9 Bn
 $15.2 Bn
$0.9 Bn
B2C
 Colleges
2
4

Phase Change: School to Phase Change: College

College
College to Jobs
NA
8 12
10 11 13

Colleges
Mn $181 Mn
Mn $245 Mn

Phase Change: School to Phase Change: College

College
College to Jobs
$140 Mn
$1.5 Bn NA
$318 Mn

Colleges
Bn $53.6 Bn

Phase Change: School to Phase Change: College

College
College to Jobs
$0.5 Bn
$15.2 Bn NA
$1.6 Bn
$15.2 Bn NA
$1.6 Bn
 es

Employment
14
15
16

es
Mn
Mn

Employment
$171 Mn

$964 Mn

es
Bn

Employment
$6.9 Bn

$2.2 Bn
$2.2 Bn
Formal Education: Schools

No. of school students (Mn) 270 [Source: Redseer]

Govt. Affordable Private

Share of total schools 65% 30% 3%
Number of students (Mn) 175.5 81 6.75
Annual fee per student (INR) 5000 20000 40000
Revenue (INR, cr) 87750 162000 27000

Education Market 327375 INR cr

46.8 USD Bn $46.8 Bn

B2B services 0% 5% 10%

Revenue (INR, cr) 0 8100 2700

Education Market 15863 INR cr

2.3 USD Bn

Share of edtech 2.5% [KPMG Online Education report]

EdTech Market $57 Mn

Unbundleable services 0% 10% 20%

Revenue (INR, cr) 0 16200 5400

Education Market 31725 INR cr

4.5 USD Bn

Share of edtech 2.5% [KPMG Online Education report - 2017]

EdTech Market $113 Mn

Formal Education: Colleges

No. of college students (Mn) 35

UG students 88% [Source: MoHRD survey: 2016]

PG students 12%
Type of college Govt Pvt - aided Pvt - unaided
Share of students 33% 21% 46%

Annual Revenue (INR, cr)

UG 12753 41349 176216
PG 2527 26225 116418

Total Revenue (INR, cr) 15280 67574 292634

Education Market 375488 INR cr

53.6 USD Bn $53.6 Bn

B2B services 0% 10% 15%

Revenue (INR, cr) 0 6757 43895

Education Market 50653 INR cr

7.2 USD Bn

Share of edtech 2.5% [KPMG Online Education report]

EdTech Market $181 Mn

Unbundleable services 0% 15% 20%

Revenue (INR, cr) 0 10136 58527

Education Market 9.8 USD Bn

Share of edtech 2.5% [KPMG Online Education report - 2017]

EdTech Market $245 Mn

 Elite
3% [Source: Redseer]
6.75
75000 [Source: NSS surveys, Redseer, market research on school fees in India]
50625

10% [Blume's assumption]

5063

20% [Blume's assumption]

10125

report - 2017]
 [Source: MoHRD survey: 2016]

[Blume's assumption]

[Blume's assumption]

report - 2017]
B2B Pre-schools
Population < 6 (Mn) 165

Rural kids < 6 74% 122

Urban kids < 6 26% 43

% of nuclear households in urban popn 53% [Source: Development Channel / cens

% of women labor force participation 23% [Source: Livemint]
Upward adjustment for younger women* 33% [Assumed]
TG households 17%

Kids in preschools No. of kids (Mn) % in preschool

Rural kids < 6 122 0
Urban kids < 6 43 2

# Kids <6 needing pre-school (Mn) 2.0

[Source: McKinsey report] % of kids No. of kids (M)

Metros 60% 1.2
Non-Metros 40% 0.8

Education Market (INR) 13427 cr

Education Market (USD) 1.9 Bn

Share of edtech 2.5% [KPMG Online Education report - 20

EdTech Market (USD) $48 Mn

DTC to kids < 8

Population <8 (Mn) 180 [Source: Census data]

Smart phone penetration 46% [Source: Business Standard]

Future schooling Govt. Affordable

Share of population 65% 30%
Kids < 8 (Mn) 117 54
Kind of service Catch up Catch up
% of kids enrolling 10% 30%
No. of kids (Mn) 11.7 16.2
ARPU (Rs./year) 0 2000
Revenue (Cr) 0 3240

Market (INR, cr) 6615

Education Market (USD, Bn) 0.9

Historic share of edtech 2.5% [KPMG Online Education report: On

Post COVID share of edtech 10.0% [Assuming an increase in adoption of

EdTech Market $95 Mn

 [Source: Census data]

30%

Development Channel / census data]

*The work force participation ratio is skewed since it includes a slighly older generation + rural women. An upward adjustment has been m
group that is younger (age 30-40) and urban.

ARPU Revenue (cr) ARPU

84000 10054 3500 7000
42000 3373 42000 84000

$1.9 Bn

Online Education report - 2017]

Census data]

Business Standard]

Private Elite
3% 3% [Source: Redseer]
4.5 4.5
Premium Premium
50% 50% [Blume's assumption]
2.25 2.25
 5000 10000 [Based on average pricing of offline / online players for this age group]
1125 2250

$0.9 Bn

Online Education report: Online test prep market 515M out of test prep market 11B]
g an increase in adoption of online medium post COVID - given lack of alternatives + growth of cos like Unacademy]
ural women. An upward adjustment has been made to account for a

INR per mo
INR per year
e / online players for this age group]

owth of cos like Unacademy]

K12

Number of students taking after school tuition (Mn) 71 [Source: Livemint]

ARPU (Rs) 15000 [KPMG Online Education repo
Revenue (cr) 106500

Education market (USD Bn) $15.2

Historic share of edtech 5% [KPMG Online Education repo

Post COVID share of edtech 10% [Assuming a large increase in a

EdTech market (USD Bn) $1.5 Bn

e: Livemint]
G Online Education report]

$15.2 Bn

G Online Education report: Online test prep market 515M out of test prep market 11B]
ming a large increase in adoption of online medium post COVID - given lack of alternatives + growth of cos like Unacademy]
rowth of cos like Unacademy]
Phase Change: School to College

Number of students in K12 in India 270 Mn [Source: Redseer]

Students in 9-12 (Mn) 90

Govt. Affordable Private

65% 30% 3%
Students in 9-12 (Mn) 58.50 27.00 2.25
Students doing test prep (%) 15% 50% 50%
Students doing test prep (Mn) 8.78 13.50 1.13
Willingness to pay (USD) $75 $250 $500
Revenue (Mn, USD) $658 $3,375 $563

Education market (USD, Bn) $5.3 [5.6 Bn in 2016 as per CL Educate - roughly 5% CA
$5.3 Bn
Historic share of edtech 5% [KPMG Online Education report: Online test prep m
Post COVID share of edtech 10% [Assuming a large increase in adoption of online me

EdTech Market $527 Mn

 Elite Total
3% 100% [Source: Redseer]
2.25 90.00
50% [Blume's assumption]
1.13
$600
$675 $5,271

Educate - roughly 5% CAGR - reasonable]

report: Online test prep market 515M out of test prep market 11B]
e in adoption of online medium post COVID - given lack of alternatives + growth of cos like Unacademy]
Unacademy]
Colleges

(In Mn)
No. of grads 8.8
MBA garduates 0.4
Engg college graduates 0.8

Job aspirations Non-gazzette govt

Number of applicants for the job 25.0
[Source: Economic Times]
% using test prep services 50%
No. using test prep services (Mn) 12.5
ARPU 5000
Revenue (cr) 6250

Total Revenue (INR, cr) 11125

Education market (USD, Bn) $1.6

Historic share of edtech 5%

Post COVID share of edtech 20%

EdTech Market $318 Mn

[Source: Money Control]
[Source: UNDP Report]

Private Sector - white collar

UPSC Test Prep
1.8 Number applying to consulting / tech + coding / foreign jobs etc.
[Source: BYJUs] 0.6
75% 30%
1.4 0.2
25000 50000
3375 900

$1.6 Bn

[KPMG Online Education report: Online test prep market 515M out of test prep market 11B]
[Assuming a large increase in adoption of online medium post COVID - given lack of alternatives + growth of cos li
 Private Sector - white collar
Coding / ISAs
nsulting / tech + coding / foreign jobs etc.
0.6
10%
0.1
100000 [Based on average pricing of offline / online players
600 for this age group]

515M out of test prep market 11B]

post COVID - given lack of alternatives + growth of cos like Unacademy]
Hiring

Hiring spend (Bn) 1.4 [Source: Market data]

Start-ups can penetrate 50% [Blume's assumption]
Edu market (Bn) 0.7

Share of online 20% [Blume's assumption]

Edtech market (Mn) $140 Mn

Training / L&D

Number of white collar workers (Mn) 75

Receiving L&D (%) 80% [Source: Mettl State of the Workplace Report]
Receiving L&D (Mn) 60
Avg. L&D spend / employee 40000 [Source: Mettl State of the Workplace Report]
Revenue (INR, cr) 240000
Revenue (US, Bn) 34.3

% that can be unbundled 20% [Blume's assumption]

Education Market (US, Bn) 6.9 $6.9 Bn

% of EdTech 2.5% [KPMG Online Education Report - 2017]

EdTech Market $171 Mn

f the Workplace Report]

f the Workplace Report]

ation Report - 2017]

$0.5 Bn
Learning for Earning (Upskilling)

Workforce (Mn) 500 [Source: World Bank]

LF Participation % 50% [Source: World Bank]
Working Population (Mn) 250
White Collar % 22% [Source: 2016 Annual Report 2015–2016 by India Ministry o
White Collar (Mn) 75
In Age 25-45 % 31% [Source: Statistics Times]
In Age 25-45 (Mn) 23

Likely TG % 30% [Blume Assumption]

Likely TG (Mn) 6.9

ARPU (USD) $250 [KPMG Online Education Report + market pricing research]

Revenue (USD, mn) 1723

Education market (USD, Bn) 1.7

Share of edtech 50% [Blume Assumption - since limited options exist --> online dr

EdTech Market $862 Mn

Learning for Yearning (Non-skill learning)

Age group 20 - 60 (Mn) 751

Popn with credit cards (%) 4% [Source: Global News Wire]
Looking for non-skilling edu 25% [Blume Assumption - given many non-education options exis
TG (Mn) 7

ARPU (USD) $75

Revenue (USD, mn) 509

Education market (USD, Bn) 0.5

Share of edtech 20% [Blume Assumption - since multiple options exist, but many p

EdTech Market $102 Mn

Continuous Learning $964 Mn

Education market total 2.2 $2.2 Bn
l Report 2015–2016 by India Ministry of Labor and Employment]

ation Report + market pricing research]

since limited options exist --> online drives majority of the sector]

given many non-education options exist like dance, sports, music, etc.]

since multiple options exist, but many prefer online given time savings + larger choice set]