Md. Shah Jalal Assistant Manager Credit Risk Management IDLC Finance Limited

When COVID-19 broke out in 2020, around 42 mln elementary-level students, along with other advancedlevel learners, were suddenly out of school. Within a few months of a countrywide lockdown, a significant number of learners returned to education, thanks to numerous digital online learning platforms. At that critical juncture, EdTech startups played a crucial role in helping the students connect with a plethora of learning and skill development programs. Surprisingly, the EdTech market in Bangladesh did not even exist a decade ago. However, the recent rise of EdTech startups in the country as well as in other Asian countries urges us to think about the factors that are pushing the change.

The term ‘EdTech’, combining the words ‘Education’ and ‘Technology’, can briefly describe the use of technology in teaching and learning activities. It may be defined as a system in which technology is integrated into the learning process to increase its efficacy. Often, this procedure includes using an online platform that has a variety of educational resources. Learners who have access to the internet can sign up for the courses they intend to enroll into.

While EdTech may seem to be a new notion, it dates back to 1922 when Sidney Leavitt Pressey, the father of the teaching machine, invented the ‘Automatic Teacher’, a mechanism that allowed learners to drill and test themselves. Pressey’s passionate commitment to automating education remained unwavering throughout his life. He said emphatically, “There must be an industrial revolution in education in which educational science and the ingenuity of educational technology combine to modernise the grossly inefficient and clumsy procedures of conventional education”. With the rise of EdTech companies worldwide, Pressey’s dream of changing the way people learn came true after 100 years.

Global EdTech Industry

Today, across the globe, there is a myriad of EdTech firms operating internationally and creating immense learning opportunities for individuals from almost every corner of the world. According to Statista, a Hamburg-based data company specializing in market and consumer statistics, the global EdTech industry was worth USD 254.8 bln in 2021 and is predicted to reach USD 605.4 bln by 2027.

According to New York-based HolonIQ, a global impact intelligence platform for innovative EdTech companies, the worldwide education industry is expected to be worth at least USD 10 trillion by 2030 driven by the population growth in emerging countries in Asia and Africa and significant re-skilling and up-skilling efforts in the industrialized nations.

More than half of the students in China and over onethird of the students in India have chosen the academic solutions provided by the EdTech startups. According to a report by KPMG, even our neighbouring country, India, has more than 3,500 EdTech startups. India has already observed the uprise of a EdTech decacorn named BYJU’S along with several unicorns which can be considered as a milestone for the industry.

Reasons behind the Surge in the Global EdTech Industry

Impact of COVID-19: The global outbreak of coronavirus has pushed changes in almost every sector. The lockdown has caused huge interruption in the natural flow of activities within the education system. Around 1.2 bln students from different countries were not able to attend classes during that period. In that situation, EdTechs emerged as the only solution to keep the students engaged into learning. Coursera, one of the leading global EdTechs, has experienced around 109% growth in its number of subscribers in 2021 compared to the pre-pandemic situation.

Increased Focus on Skill Development: Besides the academic curriculum, students nowadays pursue courses that can facilitate their personal development. The blessing of EdTech has enabled the students to become more familiar with industry-oriented skills which they can apply in their professional life. Some of the contents on these platforms are also focused on improvement of the employability skills like communication, teamwork, problem-solving, leadership, critical thinking, organizational skills, etc., which provide job-seekers an edge in building a successful career.

Technological Advancement and Industry 4.0

Over the last two hundred and fifty years, four distinct industrial revolutions have fundamentally altered our conceptions of education. With 4th Industrial Revolution which is also referred as Industry 4.0, we are moving towards a new age of Education 4.0 for which the current education system needs to be changed in many aspects. Education 4.0 is a new experience-based education system that leverages digital technology rather than rote learning. It uses digital technology instead of memorization and adapts to the needs of the modern world through personalized or peer-to-peer learning. This method prepares the next generation to meet the needs of Industry 4.0 by combining technology, individualism and learning through discovery.

Edtech Industry in Bangladesh

Though the presence of any EdTech business could not be found in our country a decade ago, there are now over 138 EdTech firms operating in Bangladesh. A handful of these companies have already taken the lion’s share of the market. According to a reliable industry data source, EdTech businesses had 5% market share in the education market in the early stages of the COVID-19 pandemic. Because of the lockdown and more individuals choosing online learning platforms, this percentage is predicted to climb even further to 10%.

According to the Bangladesh Bureau of Educational Information and Statistics (2014), one-third of total education expenditures of households in Bangladesh is spent on coaching centers and house tutors. It is expected that this market of USD 6 bln of coaching centers and home tutors will be taken over by EdTech startups shortly.

The major players in the EdTech industry of the country have been successfully able to allure both local and foreign investors. In the ongoing calendar year of 2022, Bangladeshi EdTech startups raised around USD 6 mln in funding. The fund-raising success of 13 EdTech startups shows that the Bangladeshi startup ecosystem will be led by the EdTech sector in the near future.

EdTech Startups Funding Details

Prominent EdTech Startups in Bangladesh

10 Minute School: 10 Minute School is one of the leading EdTechs in the country and is also considered the industry's pioneer. The startup has been able to capture a significant market share of the EdTech landscape of Bangladesh. The learning material on this site has been expanded from the NCTB-based curriculum to the skill development courses which are highly beneficial in higher studies. It has gained widespread popularity due to its strong presence on the social media platforms. At this moment, 10 Minute School helps more than 9,300,000 students learn with the help of 450 or more qualified teachers.

Shikho: Shikho, a Bangladeshi EdTech firm formed in 2019, is on a mission to democratise access to high-quality education in Bangladesh. Students may use the Shikho Learning App to study at their own speed, test themselves and move ahead with expert instructors at any time and from anywhere. When users sign up for the Shikho app, they will get video lessons with high-quality animation to improve their learning experience using fun gamification approaches. Shikho is the largest seed-funded startup in Bangladesh (USD 5.3 mln of seed funding) which has already acquired the leading professional courses platform, Bohubrihi, and a platform that focuses on the practical aspects of learning how to code, Mainly Coding.

UpSkill: UpSkill is a peer-to-peer talent sharing platform that began its journey in 2018. It enables individuals and organizations to share skills and exchange technical knowledge to bridge the skills gap in Bangladesh. Learners may enroll into the courses they need at UpSkill while experts can post learning materials in the areas where they are specialists. As a result, the organisation is enabling both online teaching and learning. The platform provides classes for practically every level of the student. It gives professionals lots of great ways to learn and fill in skill gaps by taking courses.

Repto: Repto is a part of the Grameenphone Accelerator program and works with an almost identical model as UpSkill. It offers a diverse range of courses to the students while the skilled individuals can share their knowledge through lectures, videos or tests. The organization provides learning facilities to 116,770 students from all over the country. The 545 e-teachers listed here have a passive source of income through the platform.

Science Bee: Science Bee, founded in 2018, is one of the nation’s biggest science-based education platforms. The purpose of this platform is to take the inclusivity of science and technology to the under-served community and increase the number of people who are actively engaged and involved into science and technology. Currently, around eight hundred thousand students are enrolled with the firm.

Challenges

Though the education businesses have seen tremendous changes and we have progressed beyond traditional boundaries, there are still substantial gaps and issues in the field. For sure, if obstacles continue to interrupt the growth variables, the EdTech sector in Bangladesh will not be able to develop at the expected pace.

The lack of internet access by most of the households are the main factors posing barriers. According to an analysis conducted in the year 2019 by UNICEF Bangladesh, citing the Bangladesh Bureau of Statistics, 62% of the households in Bangladesh do not have internet connectivity at home. Also, there are significant differences in the quality of internet access depending on the households’ socioeconomic backgrounds.

According to a study conducted by the World Bank, less than 50% of the students in Bangladesh have access to radio, television and online platforms. According to the Campaign for Popular Education’s Education Watch Report 2020–21, 58% of the surveyed students lacked the electronic or smart devices required to access remote learning programs. From these numbers, it is clear that there are differences which will cause a digital discrimination in education.

Bangladesh has the lowest allocation for education in South Asia which is 2.08% of the GDP, lower than the 15 of 36 world average of 4.80%. Even our neighbouring countries like India, Nepal and Bhutan’s allocations are more than double in GDP percentage.

In Bangladesh, as compared to college and universitylevel students, there are not nearly as many online courses and platforms available for primary-level students. The quality of the courses also differs across different e-learning platforms as, in most cases, the online courses are designed and imparted by different instructors. Most online courses in Bangladesh do not have academic accreditation, a good reputation or recognition in the traditional education system.

In recent years, several EdTech startups have received funding from local and foreign investors. Still, some promising EdTech startups have not received the funds they need to grow.

Way up and forward

Bangladesh is now trying to digitalize every aspect of daily life rapidly. However, if it wants to maintain this stratospheric growth, it will need to address issues such as education to prevent its citizens from falling behind. The education market in Bangladesh is one of the world’s biggest and most undervalued. Hence, every EdTech firm with the right products and innovations may provide multimillion dollar economic prospects while also having a significant influence on learners.

One in every four individuals in Bangladesh is deprived of education. With this backdrop, EdTech could catapult our education landscape through affordable and accessible learning and skill development programs, ultimately democratizing education.

The government has already taken several initiatives like Amar Ghare Amar School which aims to bring 40 mln students under the hood of digital education with the help of online platforms, national radio, community radio and Shikkhok Batayon which is a video platform for public school teachers to share their educational contents. These initiatives demonstrate that policymakers are keen to promote the digital education platform.

Numerous angel investors, accelerators and incubators, venture capital firms and corporate investors are coming forward to bridge the financial gap in this startup segment. The government is examining specific financial measures to meet the requirements of startups. The ICT Ministry’s Startup Bangladesh Fund is also a source of financial support. Evidently, policymakers are prepared and enthusiastic about fostering the ecosystem’s expansion.

Bangladesh, the world’s 39th biggest economy and one of the fastest growing nations, has seen a tremendous transition in the startup businesses in recent years. 62% of the country’s population is under the age of 35. Given that the majority of the population is assumed to be tech-savvy, it offers tremendous potential for EdTech businesses. Hence, for the growing economy of Bangladesh to succeed, it must strive for increased levels of literacy, better educational opportunities and the incorporation of new technologies. Even though EdTech businesses have digitalized education and seem to have resolved a number of significant issues, they still have a long way to go.

The writer is working as Assistant Manager at IDLC Finance Limited and he can be reached at mjalal@idlc.com.