Amit Saneja on how AI has expanded and transformed the EdTech sector

The educational sector in India has gone through several changes in recent years. India is regarded as the potential ‘ed-tech’ capital of the world. There has been an emergence of several ed-tech startups in India during the COVID-19 pandemic when online classes became the norm with the closure of schools and learning institutes.

However, as per Observer Research Foundation, since the year 2024, the ed-tech sector in India has become saturated with around 4500 ed-tech startups, making customer acquisition and funding difficult, leading to mass layoffs and cost-reduction measures by ed-tech firms. By March 2022, one of the leading ed-tech brands in India, Byju’s has faced a net loss of over $1 billion, after reaching a valuation of around $22 billion, and is going through organizational restructuring at present. In 2019, Byju’s turned out to be the first ed-tech unicorn valued at more than $1 billion. Some of the factors that are responsible for the loss suffered by Byju’s are financial mismanagement, costly acquisitions, delay in filing financial reports, the resignation of Deloitte as the auditor, and other board members, Moreover there was a deviation from its educational values, paucity of innovation in content delivery as well as expansive marketing campaigns. The parent company of Byju's Think & Learn Pvt Ltd had faced an investigation for not making payment of PF amount to its employees, facing suspension by Facebook and Google for non-payment of ad dues. It is reported that during the Covid-19 pandemic, Byju’s was the sponsor for the FIFA World Cup, the Indian Cricket Team onboarding Lionel Messi as the brand ambassador.

In the future, the ed-tech landscape is set to be redefined by the consolidation of machine learning (ML), artificial intelligence (AI), and virtual reality (VR). These advanced technologies will be utilized to a greater extent in training modules, online platforms, and classrooms. Individual learning patterns can be analyzed and studied by AI algorithms which help in tailoring educational content suiting each student's distinctive strengths and weaknesses. ML enables predictive analytics, and VR leads to the transformation of theoretical concepts into immersive experiences. This makes education more adaptive, engaging, and interactive.

The ed-tech sector in India, that had became the second largest ed-tech market after the US in the world by the year 2021, has received funding of nearly $4.73 billion, and ed-tech firms such as Simplilearn, Emeritus, and others were expanding globally in that year. However, with the opening of the schools and other educational institutes in 2022, there was a change in the ed-tech scenario with increasing competition for market share driving down prices, discouraging investors, and having an impact on profitability. The ed-tech startup funding was reduced to $2.6 billion in the year 2022, further diminishing to $297.3 million in 2023. More than 14,000 employees working in the ed-tech sector have lost their jobs in 2022 with ed-tech firms such as Unacademy, Byju’s, and Vedantu contributing to half of these job losses.

The number of people using the internet in India is growing exponentially with the new learning avenues growing simultaneously. Aspirational users from rural and semi-urban areas will be steering growth as they look for opportunities for an improvement of their situation and ed-tech platforms which offer integrated services of learning, skilling, hiring, financing encapsulate a large share of the customer lifetime value, leading to more brand loyalty and brand awareness.

In conversation with Adgully, Amit Saneja, CEO, Educate Online, speaks about the origins of the company, offering universal accessibility to high-quality education for children across the globe, entering the Indian market in 2022, the core components of Educate Online’s marketing strategy, offering intriguing, goal-oriented, and personalized experiences to students, and more.

Journey of Educate Online so far and its objective, TG

Reflecting on the journey of Educate Online so far, Amit Saneja said, “To provide universal access to high-quality education for children around the globe, we launched Educate Online in the United States in 2018 and entered the Indian market in 2022. While navigating through various hurdles and difficulties during the journey, we take pride in announcing that we have effectively enrolled more than 4,000 students in online and on-campus programs at renowned educational institutions worldwide.”

Commenting on the marketing strategies employed by Educate Online to reach its target consumers and its marketing mix, Saneja said, “Our comprehensive marketing strategy is centered on personalized outreach, partnerships, and digital platforms. We interact with our target audience which comprises students and their parents looking for premium online and foreign education, by utilizing social media, content marketing, and influencer partnerships. Our marketing mix further incorporates digital advertising, email nurturing campaigns, and community engagement activities, highlighting our distinctive value proposition and transformative educational programs.”

He further pointed out, “At Educate Online, we allocate 3-5% of our overall budget towards the advertising expenses. This spend on advertising fluctuates based on the stage of the business and the trends going on in the market.”

Discussing about the trends in the study abroad ed-tech space and the evolution of consumer behaviour in the same as well as the opportunities and challenges faced by Educate Online, Saneja shared, “The adoption of cutting-edge technology like AI has expanded and transformed the EdTech sector. Consumer behaviour has been significantly impacted by this, as families and kids now want personalized, interesting, and goal-oriented educational experiences. The increasing need for upskilling and future-ready training has allowed us to see how well it fits with our objective to offer comprehensive, internationally relevant education. By customizing material and delivery to meet the individual needs of every student, our AI-powered platforms transform the educational process and place a high priority on mental health and wellbeing.”

He further said, “Moreover, a growing focus on measurable outcomes has strengthened our commitment to guarantee that our programs have a real influence, from high school diplomas to university admission and meaningful career opportunities. Educate Online is committed to recruiting great people and staying up to date with the latest innovations in study abroad edtech as we navigate this ever-changing field.”

Pointing out the most effective strategies for reducing the cost of customer acquisition and the metrics used for the assessment of the efficiency of digital versua traditional marketing efforts, Saneja said, “Networking and building B2B relationships are successful methods for lowering customer acquisition costs. In addition to this, implementing loyalty programs to promote repeat business and providing incentives for customer referrals also leads to positioning the business as a significant player in the market through strategic positioning. To assess the effectiveness of traditional versus digital marketing efforts, we primarily evaluate the return on investment (ROI) across all channels by analyzing key metrics. For traditional marketing, Educate Online closely monitors conversion ratios, which indicate the percentage of leads or prospects that convert into paying customers. Additionally, analyze the conversion to lifetime value (LTV) proposition, taking the possibility of long-term revenue from new clients. Similar measures, such as website conversion rates, cost per acquisition, and customer lifetime value, are extensively watched in the field of digital marketing to assess return on investment and make informed decisions.”

Market share and growth projections for 2024

Saneja said, “With no direct competitors in the market, Educate Online has a niche in preparing K–12 students for higher education abroad. In 2023, we successfully established commercial viability in India, exceeded our global targets, and solidified our market position. Also, Educate Online has already gained a head start on scalability for 2024, and projections indicate continued expansion and achievement of growth milestones and we are aiming towards achieving our annual numbers by Q3. Furthermore, we look towards significant growth with plans to launch innovative solutions across various markets.”

On the way, Educate Online is leveraging Influencer Marketing and AI, digital media, Saneja shared, “At the core of our digital transformation is the utilization of AI resources and tools. Using these tools, we can provide our students with a more successful and interesting learning environment. To expand our audience and strengthen our brand, we are also utilizing influencer marketing. One challenge that Educate Online has faced with influencer marketing is the scarcity of influencers specifically focused on the education domain. We are trying to revolutionize the way online education is delivered, making high-quality learning accessible to students worldwide through these strategic digital initiatives.”

He further pointed out, “The average ticket price significantly impacts overall revenue and profitability. A higher ticket size allows for more effective promotional strategies with higher customer acquisition costs. It also enables better client servicing through improved technology, counseling quality, and structuring a more valuable ongoing education journey. Conversely, lower ticket prices may require optimizing operational costs while limiting personalized support to maintain profitability. To evaluate the long-term sustainability of profit margins, Educate Online focuses on maintaining an authentic and transparent process that offers disproportionate benefits to the student and parent community. By building a strong foundation of trust and longevity through ethical practices, we can ensure the commercial aspects remain viable for the foreseeable future.”

Elaborating on the strategies required for increasing or maintaining a market share amid competition and the profit allocation among the several channels of distributions, Saneja said, “To maintain and increase market share amidst competition, the strategies of Educate Online focus on building long-term relationships, creating a potent combination of personalized and technological approaches, and continuously researching and innovating to address evolving student needs proactively. The allocation of profits among different distribution channels is determined by a combination of factors such as channel productivity, visibility, innovation potential, and research needs. Additionally, new product testing and market assessments may necessitate a skewed investment of resources to specific channels for strategic growth opportunities.”