Driven by AI, edtech funding rebounds with 5X surge in H1 2025

India’s edtech sector witnessed a rebound in the first half of 2025 after a period of slowdown. Funding activity surged more than fivefold year-on-year, with capital largely flowing into companies focused on study-abroad services, workforce skilling platforms and startups leveraging artificial intelligence (AI) to expand into language learning and vernacular education.

In the January-June period, the sector raised $120 million (about Rs 1,059 crore at current exchange rates) through 11 deals, up from $22 million across seven deals a year earlier., according to Venture Intelligence data. However, the fundraising was still lower than the $230 million raised in the first half of 2023.

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