Starting EduTech Startup: Tips to start EdTech Startup from Small Town

Starting EduTech Startup Tips to start EdTech Startup from Small Town | Karo Startup

The term EdTech portrays all the software that is utilized to educate people, regardless of whether as an aspect of a mixed learning environment or as an independent entity. The first example of it showed up before even the Internet was introduced. Presently it is a flourishing industry with the worldwide EduTech startup market, hoping to arrive at USD 341 billion in 2025.

With the developing demand for an accessible and open platform for education, the idea of EdTech has been buzzing. As the name says, an EdTech is a learning tech business that offers educational help to its users through an online entry. With ‘Digital India’ and ‘Skill India’ on the ascent, beginning an EduTech startup has been simpler than at any other time.

Types of Edutech startup

  • Online Tutorials and Coaching Classes
  • Short-Term Certificate and Degree Courses
  • E-book and QnA Forum

Reason to launch an Edutech Startup

Whether you are beginning from a small town or metro city, it would be best if you had some reason and motive behind your plan to launch an edutech startup. The extending market has a place for more goal-oriented organizations ready to improve this sector and generate revenue in the process. They don’t do favoritism to a small-town entrepreneur as they only see the reason behind it.  Here’s why you should start one.

1. EdTech is a Billions Dollar Industry and Growing

EdTech is a Billions Dollar Industry and Growing | Karo Startup

If you differentiate the education framework worldwide, the Asian education model is the biggest on the Earth. For instance, India’s online education market is expected to reach $1.96 Billion by 2022. What all this information shows us is that there is an absolute potential for new EduTech startups.

This is predominantly because of the trend of constant learning promoted by top organizations over the world. These days, both guardians and students know the requirement for effective education platforms facilitated by edutech startups. Over 50% of students, as of now, have faith in the capability of education technology.

2. EdTech Startups Attract Incubators and Accelerators

EdTech Startups Attract Incubators and Accelerators | Karo Startup

90% of all startups fall in their first year. While this reality may scare you from seeking your dream of a startup, you don’t need to be one of those 90% startups, thanks to Incubators and Accelerators. Even though Incubators don’t focus exclusively on helping startups alone, they’re as yet significant for maturing edutech startups.

Accelerators, then again, can furnish the seed funding alongside preparing and counseling in return for a share in your startup. Right now, Teclabs, Started and Intel Education are among the top accelerators focused on investing in an edutech startup.

How to raise fund for an Edutech Startup

To get your next-gen EdTech startup financed, you should be incredibly proactive and discover approaches to separate your brand name from the horde of competitors you’ll be competing within the market.  Being from a small town can create a little problem when it’s come to funding. Questions like: Why are you worth funding?  How will you attract the market from a small – town? There are various approaches to get funds for the early edutech startup. None of them is simple; however, each has something to bring to the table. We are referencing the ideal approach to get funded if you are eager to begin from a small city.

1. Financial Loans

Every bank in India lends money to begin a startup. You can go to a nearby bank to take a loan, or you can likewise avail of state and government initiatives that help edutech startups with funds.

Financial Loans | Karo Startup

When you raise funds to begin your edutech startup, you need to pay back the loan amount with interest regardless of your business’s success or failure. However, managing loan installment is direct (fixed scheduled installments), the moneylender doesn’t have any command over your business, and the premium installments can be deducted as costs.

2. Crowdfunding

Since 2016, the crowdfunding value has outperformed the investment one. Under this approach, countless individuals contribute moderately little sum in return for a gift or a non-financial reward once the item or service is live.

Crowdfunding | Karo Startup

Crowdfunding permits you to stay in charge of your edutech startup, extraordinary for pitching niche thoughts, and can raise funds in a month. But you have to put resources into promoting to pull in contributors, must have a clear proposition, and if the crowd doesn’t promise enough funds for your edutech startup as they don’t like your idea or business model, you don’t get anything.

Why EduTech Startup Fails

Being a learning or EdTech startup isn’t simple. It is difficult in India; likewise, it is difficult at anyplace on the planet. In India, edutech startups have seen success in just a few sections that incorporate Test Prep, Professional Courses, and LMS. Excepting this, the more significant part of this domain, for example, Pre-school, K-10, and Higher-Ed, are yet to see excellent stories. Numerous variables are answerable for the low pace success of EdTech startups. Some of them are mentioned below.

1. Poor Market Research

Poor Market Research | Karo Startup

There’s no argument on the fact that there are different innovative possibilities in the education area. In any case, not every one of them is ‘must-required.’ A portion of those thoughts is too lavish to engage in the current situation.

In such a situation, those edutech startups that ran into the edtech sector without doing the proper homework, also known as statistical surveying and competitive analysis, find it’s hard to recognize ‘must-required’ and ‘lavish’ application ideas and inevitably, fizzle on picking the latter.

2. The motives are different, and requirements do not match

Numerous edutech startups flopped because of an absence of understanding of the primary concern, for example, ineffective education innovation; the tools are difficult to understand, excessively costly, or hard to manage. Your item should meet the intentions of educators, guardians, and students. It must profit students, boost growth, and must be safe.


The EdTech ecosystem’s development and the rise in the total number of edutech startups breakdown bring the entrepreneurs to the dead end. They are neither sure about entering the market nor neglecting related chances. To clear their way towards a fruitful future, we have already mentioned the reason to begin an edutech startup, approaches to get funding, and the reason for the fall of an edtech startup. Before starting your venture, consider these points if you are an entrepreneur from Tier 2 or Tier 3 cities looking for an opportunity in the EdTech industry by launching your own company. In that case, you can reach us at Karo Startup, where we support startups from small cities and help budding entrepreneurs.

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