EdTech sector shifts focus as funding falls, consolidation grows

India’s EdTech sector is moving away from funding-led growth as investment declines, while public listings, acquisitions, offline centres and institutional partnerships reshape business models, according to a Tracxn report.

Annual equity funding fell from about $4.3 billion in 2021 to $214 million in the first eight months of 2026. The number of funded rounds also declined from 368 in 2021 to 36 during the same period.

However, the median round size rose to $1.1 million in 2026, nearly twice the level recorded in earlier years covered by the report. This indicates that fewer companies are raising capital, while those securing funding are receiving larger amounts.