The pandemic has confined students across all ages to home and digital education is the only way to continue learning.
Education, especially edtech, has recorded investments worth $1.1 billion in 2020, its highest-ever annual tally and four times compared to last year.
Investors say they will continue to see the maximum investment in 2020. High penetration of low-cost internet (4G) has made accessibility possible.
With parents confined to home, even students without personal mobiles now have access to learning material through parents's phones.
According to Venture Intelligence data, during January to August 2020, venture capital (VC) investors pumpled in $1.19 billion spread across 36 deals as against $409 million across 43 deals during the same period last year. VC is defined as investments in companies less than ten years old.
Byju Classes leads the table which raised nearly $1.12 billion in four tranches from January 2020 to September 2020 from various investors including Silver Lake, Tiger Global, General Atlantic, Owl Ventures and DST Global.
Vaibhav Tamrakar, VP of PGA Labs, said that low digital penetration of online education at 1 per cent ceiling is very high ($100 billion market size).
With nearly 260 million student enrolments (from 345 million relevant population), spending on education as a percentage of family income is high in India.
"The large players in the space - Byjus, Unacademy, Jio Embibe, Vedantu, Toppr have become household brands and they will continue to see the maximum investment in 2020.