Education and Training Sector
According to a marketing intelligence report by Indian Private Equity and Venture Capital Association (IVCA) and Praxis Global Alliance (PGA), the Indian Education and training sector, more specifically the start-ups, have received a funding of $2.2 billion in the FY2020. As per the report, 92 start-ups received funding while 61 of them received seed funding. This is a massive step-up from previous years funding $553 million.
The most active investors in the education start-up sector were Blume Ventures, Nexus Venture Partners, Sequoia Capital India, GGV Capital, Coatue Management, WestBridge, Omidyar Network, Tiger Global and General Atlantic.
The Indian online education companies have been the most prominent aspect of the education sector in terms of funding raised as over the last five years from 2016-2020 they have raised a sum total of $4 billion.
The Breakdown of Education Sector Funding
K-12 and test preparation start-ups accounted for the largest of the shares with a total of $1.9 billion. The next largest segment was continued learning at $142 million, followed by higher education at $84 million and pre-K and EdTech companies at $12 million and $7 million respectively.
The Education and training sector in India is expected to grow a total approximate value of $225 billion in India by the FY25 at a rate of 14 per cent CAGR.
The E-Commerce Sector
According to reports from Venture Intelligence, funding by Venture Capitalists and Private Equity in the e-commerce sector dropped significantly in 2020 between January-September to $1.2 million. This marks a 55 per cent drop from previous year’s investments of $2.7 million.
In 2020 only 66 firms were part of the group that raised the funding as opposed to the 107 companies in 2019. This drop in investment comes despite the higher than usual consumer purchasing patterns as a result of the pandemic.
The Retail Sector
The Indian retail sector has proven to be a resilient sector as it was estimated to reach Rs.76.87 lakh crore in 2020, as per an ibef report. This number was despite the fact that the pandemic was in full swing. According to the same report, the sector received a Foreign Direct Investment of $2.2 billion between 2000-2020.
The retail sector was also able to obtain funds in 2019 worth $970 million from different private equity funds.
In the peak pandemic the sector survived due to the efforts of 12 million plus kirana and mom-and-pop stores around the country that drove consumer purchasing at the local level. Thanks to Investors like Reliance Industries, which managed to raise Rs 47,265 crores with the support of global investors: Silver Lake Partners, KKR, Mubadala, ADIA, GIC, TPG, General Atlantic and PIF.
In short, by the end of 2020 the sector was already back to an 80 per cent pre-covid operational capacity.
Check out our articles on more sector-based funding trends for the FY2020 and get the full picture.