India’s EdTech industry is the second biggest in the world

RS Components has released a new report that analyses Crunchbase data, alongside a survey targeting teachers, to reveal the state of educational technology (EdTech). The report reveals the countries that are investing in EdTech the most and the EdTech companies that are leading the way.


  • The US has the highest number of EdTech enterprises, with 43% (1,385) of all EdTech company headquarters being based in the US.

  • India is home to the second-highest number of EdTech companies (327), followed by Brazil (275), the United Kingdom (245) and China (101).

  • Sweden’s EdTech companies see the highest success rate in securing venture capital, with 57% of companies backed by VC funding.

  • Indian EdTech startup company BYJU’S is leading the way with the highest amount of venture capital raised.

  • EdTech acquisitions are on the rise with almost 200 acquisitions in the EdTech space since 2003.


RS Components has analysed Crunchbase data on EdTech companies to reveal who is investing in EdTech the most. The report looks at the countries that are home to the most EdTech companies, as well as those that have raised the highest capital, are receiving the most funding and have made the most acquisitions. The full ‘State of EdTech’ report can be found here.


Which countries are leading the way in EdTech enterprises?

With a predicted market value set to reach $252 billion in 2020, EdTech startups are on the rise all over the world. At the heart of this surge is the US, with an overwhelming majority of 43% of the world’s EdTech enterprises having their headquarters located in the United States. The country’s population size, large economy, and tech and innovation hubs, such as Silicon Valley, are likely to contribute to its success.


India has the second-highest number of EdTech startups, with 10% being located in the country. Brazil (9%), the UK (8%), and China (3%) all make it into the top 5 countries leading the way in EdTech.


The countries home to the highest number of EdTech company headquarters:



Which countries are top for venture capital (VC) funding in EdTech?

When it comes to the success rates of the world’s EdTech companies in securing funding, it’s countries like Sweden, China and Italy that come to the fore, with over half of their EdTech startups successfully securing funding.

Sweden leads the way, with 57% of its EdTech startups being successfully funded, and with organisations like Swedish EdTech Industry claiming that: “Sweden will become the leading country in the world in exploiting the opportunities and effects of digitalisation in the education system”  it’s clear that there is significant confidence in the industry.

Sweden is also home to key initiatives in the EdTech field, such as EdTech Sweden – an annual event, hosted in Stockholm, that is a combination of a conference, exhibition and a networking event where experts in the field share and discuss best practices and new digital solutions that promote learning.

The countries where the highest proportion of EdTech companies are securing funding:

Where are EdTech companies receiving the most funding?


Just under one third (31%) of EdTech companies have successfully attracted VC funding, with 1,019 enterprises in the industry attracting a total of $14 billion. When it comes to the average amount of funding each EdTech company attracts, China is where companies come out on top, with an average of $43.9 million being invested into individual EdTech companies.

Luxembourg is a close second, with EdTech companies here attracting an average investment of $35.4 million each. Compare this with the US, home to the most EdTech companies where each attracts an average of $16.6 million, and it’s clear that countries like China and Luxembourg are putting a much higher value on EdTech.

Which EdTech companies are leading the way?

India is home to the EdTech startup, BYJU’s, which has raised the highest amount of capital, at $969 million. Following shortly behind are China’s Yuanfudao at $544m and Zhangmen at $499m.

Seven of the highest funded companies are based in the US, with the likes of Coursera, Laureate Education and 2U Inc. attracting a total of $313.1 million, $400 million and $426.8 million, respectively.

Have EdTech acquisitions increased?

According to Crunchbase, there have been almost 200 acquisitions in the EdTech space since 2003. While few were made between 2003 and 2009, acquisitions have been on a steady rise since the early 2010s, with 37 acquisitions in 2018, 36 in 2017 and 33 in 2016.

The most notable acquisition in the space was LinkedIn’s $1.5 billion purchase of Lynda in 2015. The company, now known as LinkedIn Learning, is a provider of online video courses taught by industry experts in software, creative, and business skills.

A spokesperson from RS Components comments:

“EdTech is clearly seeing a huge boom at the moment, with acquisitions on the rise and its market value set to hit $252 billion this year, so it’s great to see tech entrepreneurs all over the world bringing their talents to the industry.

“With more than 40% of EdTech companies setting up their headquarters in the US, it looks like the country is becoming a hub for EdTech startups. However, with companies in China and Luxembourg receiving the highest proportion of funding and the likes of Sweden, Italy and Austria being home to the most companies that are successfully securing funding, it’s clear that there are opportunities for EdTech startups all over the world.”