India’s education technology sector is undergoing a significant transformation as companies pivot towards artificial intelligence (AI) to meet the growing demand for AI-focused training. This shift aims to revitalize a sector still grappling with the impacts of a post-pandemic downturn. Firms like PhysicsWallah and upGrad have reported a marked increase in enrolments for courses related to AI, cloud programming, and AI leadership over the past year.
According to the upGrad Enterprise’s Workforce Wishlist Survey 2025, approximately 83% of employees and 73% of employers now view AI skills as essential for hiring and job performance across various industries. This trend is reflected in the increasing popularity of certifications such as Chief Technology & AI Officer (CTATIO), alongside cloud programming initiatives and the Microsoft NSDC U&AI programs provided by edtech companies.
Anuj Vishwakarma, CEO of higher education programs at upGrad, noted that in the past 12 to 15 months, nearly 90% of learners have chosen AI-focused programs to enhance their roles within organizations. Interestingly, the demographic of enrollees is shifting; mid-career professionals are now at the forefront, with the share of fresh graduates in consumer AI courses decreasing from about 30% to 20%. Participation from professionals with more than a decade of experience has nearly doubled.
This strategic pivot towards AI emerges at a crucial juncture for India’s edtech landscape. During the Covid pandemic, online learning platforms enjoyed explosive growth as educational institutions shifted to virtual environments. However, the return to in-person classrooms and offices has led to a dramatic slowdown in demand, revealing fragile business models and compelling many companies to reassess their strategies.
One of the sector’s most prominent examples of distress is Byju’s, which has witnessed a staggering decline in its valuation, once heralded as a beacon of success in the Indian startup ecosystem. Data from market intelligence platforms indicate minimal fresh funding activity among the top 50 funded edtech startups since the start of 2023. NxtWave, based in Telangana, was among the last to secure capital, raising $33 million this year.
The financial performance of the sector reveals a mixed picture. Of 27 edtech startups analyzed, 16 reported losses in 2025, including notable names like Scaler, Masai, Coding Ninjas, and Analytics Vidhya. However, revenue grew year-on-year for 11 out of 23 startups, suggesting an uneven but partial recovery.
Industry executives believe that AI could play a pivotal role in restoring confidence in the sector by enhancing learning outcomes and personalizing educational experiences. Gopal Sharma, Chief Operating Officer at PhysicsWallah, remarked, “AI can rebuild confidence in the country’s edtech sector by making learning more personalized and adapting to each student’s pace. This makes education more engaging and outcome-focused.” He also emphasized that partnerships between edtech firms and educational institutions are crucial for expanding offerings and establishing sustainable learning ecosystems.
Several companies are already experiencing substantial revenue growth from AI-driven products. Rajiv Jayaraman, founder and CEO of Knolskape, reported that approximately 30% of the company’s revenue now stems from AI-led offerings, a segment that is growing nearly 100% year-on-year.
Despite this optimism, executives have yet to confirm whether AI-focused courses have translated into higher job placements for learners. They noted that hiring trends are evolving, with companies increasingly seeking specialized AI talent as well as professionals who can integrate AI into existing roles. Vishwakarma commented, “Companies are not only hiring for AI-native roles such as generative AI developers and machine learning engineers, but also for AI-adjacent roles like marketers, product managers, and business leaders who can effectively work with AI tools.”
Looking ahead, edtech providers are planning to enhance experiential learning through initiatives such as hackathons, immersive workshops, and collaborations with universities, allowing learners to engage with real-world AI applications. This focus on practical experience may further strengthen the sector’s recovery and relevance in an increasingly AI-driven job market.
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