Ed-Tech 2.0 – TestPrep Startup EdSarrthi’s Revenue Jumps 3X

As soon as these physical barriers were removed, the market leaders started facing the heat with mounting losses, layoffs and “Funding Winter.” Amid this grim picture of the Sector, there emerges Ed-Tech 2.0 which Points out a Contrasting Picture.

Ed-Tech 2.0 includes the rise of Startups Like Physics Wallah, Adda 247, EdSarrthiand Others. These Startups have grown organically and managed to raise the funds amid this “Funding Winter.” Physics Wallah Raised $100 Million in June 2022 and became a Unicorn. Adda 247 raised $35 Million in October.

The Reason for Continued Rise for these Startups are the sustainable business model built by these companies which flourished even after the physical barriers were removed. Focus on Value creation in terms of accessibility, affordability and quality education remains a key factor behind their success.

One Such EdTech Startup which comes under Ed-Tech 2.0 Trend is Edsarrthi. It offers Mentorship for Competitive Examinations like UPSC CSE. Started in October 2020, the Startup witnessed an excellent organic growth because of their uniqueness cohort based mentorship and key focus on quality content offering. More than 700 Ed Sarrthi’s students cleared the Prelims exam and 60 students became Civil Servants in the past 2 years. They are connected with 1 Lakh community of Studentswhich is growing at a faster pace.

The Startup produced 9 Toppers in Top 100in UPSC CSE Result which was announced in May 2022. Post Result, it witnessed a 300% jump in its revenuewith ARR reaching around $1 Million. It has now established its strong hold in the UPSC CSE IAS Exam categorywhich is considered the queen of all the government exams in India.

Speaking about the Future Plans, its Cofounder Praful Agarwal, MBA from HULT, San Francisco, says “Ed Sarrthi is now planning to launch its One day Exam Vertical which includes Banking and SSC Examsfor which millions of students apply every year. The idea is to focus on quality content at affordable prices in this category.”

With Respect to Challenges Posed by Offline markets after removal of physical barriers, Founder Varun Jain, IIT Roorkee Graduate who himself appeared for IAS Interview Twice , says “Opening up of Physical spaces has been more challenging for K-12 Segment as there is no replacement of Schools which is essential for holistic development of Kids. But for the Testprep segment where the focus is on clearing competitive exams, the online has flourished because of its accessibility and affordability.” He Further added “Edsarrthiwill also be moving for Physical Centers within UPSC CSE category next fiscal year.”

The verdict is still not out with respect to the future of the sector. But it seems more probable where a hybrid mode with Sustainable and organic growth will be preferred. Thus Edtech 2.0 is actually a more mature stage of the Sector.

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