The busines models under this IOA can ensure that children at primary and secondary levels of education achieve the minimum prescribed proficiency level in literacy and numeracy.

The business models under this IOA leverage technology to improve the reach of quality education to the masses, especially for those in a limited resource setting.

Execution risk: The ability of technology-enabled models to significantly improve learning outcomes has not been proven at a large scale (2.25).

Early studies have yielded positive results, making the likelihood of operational risks materializing from business models under this IOA between low-medium.

Using digital platforms, improve ubiquitous access to K12 educational tools and course materials in vernacular languages to improve literacy and numeracy outcomes for students from lower and middle income households.

The National Education Policy (NEP) 2020 considers education as an utmost important parameter in the country and focuses on quality of education, innovation and research in the sector. In November 2018, the National Education Policy Framework 2018 was launched (2.18)

NITI Aayog's Strategy for New India @ 75 highlights improving learning outcomes as a priority and promotes the use of technology in education.

The Department of School Education and Literacy launched Samagra Shiksha programme with effect from 2018-19 for schools from pre-school to class 12th, emphasising on providing quality education at all levels.AL38:AP38

GOI launched PM eVIDYA, a programme for multi-mode access to digital/online education. Other initiatives to be launched include Manodarpan, New National Curriculum and Pedagogical framework, National Foundational Literacy and Numeracy Mission (2.19)

In July 2020, the GOI launched "SWAYAM", an initiative to provide “best teaching learning resources to all” online (2.20)

Private Equity (PE) and Venture Capital (VC) funding has been gaining momentum and, companies in the education sector attracted US$ 500 million by end of 2019. Most of these companies are focusing on EdTech (2.22)

With an aim of promoting innovation and entrepreneurship among secondary school students in the country, NITI Aayog launched Atal Innovation Mission (AIM) with 5,441 approved labs (2.22)

Small Industries Development Bank of India (SIDBI) has envisaged the creation of the Samridhi Fund to provide capital to social enterprises which can deliver both financial and social returns, in Bihar, Uttar Pradesh, Madhya Pradesh, Odisha , Chhattisgarh, Jharkhand, Rajasthan and West Bengal. Education is a sector covered under the fund (2.23)

Ministry of Human Resource and Development (MHRD) is the nodal agency that lays down the overarching regulatory guidelines.

K-12 education is regulated at the State Government level by the State Education Departments, which lay down the requirements and governance structure in line with broad Central Guidelines. (2.21) There are no specific regulators for EdTech.

100% FDI (automatic route) is allowed in the Indian education sector (2.13)

nvestor: Development Finance Institutions: International Finance Corporation (IFC). Foundations and Impact Investors: Chan Zuckerberg Initiative, LGT Impact, Michael & Susan Dell Foundation, Village Capital, LGT Lightstone Aspada, Omidyar Network. VCs: Matrix Partners India, SAIF Partners, Sequoia Capital India, Sofina, Naspers Ventures, Light Speed Venture Partners, Chiratae Ventures, Blume Venture Advisors, Nexus Venture Partners. Private Equity and Sovereign Wealth Funds: CPPIB, Qatar Investment Authority, General Atlantic, Tiger Global, Gaja Capital, Kaizenvest, Bond Capital, Steadview Capital Management LLC have /had multiple investments in EdTech (2.24)

Corporations: Vedantu, Toppr, MeritNation, Lido Learning and XtraMarks provide pre-recorded or live B2C online supplementary education. Facebook-backed Unacademy focuses on test preparation. Google, Xseed, IMAX Program, WizIQ offer B2B technology solutions for education institutes. Reliance Industries funded Embibe offers both B2B and B2C solutions. Educational Initiative is a B2B provider focusing on government schools. A number of start-ups specialize in a specific vertical such as CampK12 (coding), Doubtnut (doubt resolution) , LogicRoots (gamified maths learning), CueMath (maths), Playshifu (STEM), WhiteHat Jr (coding). Brick and mortar providers such as Aakash Education are also entering the online space. Khan Academy and Bridge International Academy are also operating in this space.

UNDP, UNESCO, World Bank are some of the multilateral agencies that provide capacity building support, grant in aid for initiatives in the education sector.

More than a 3rd of CSR spending in India goes towards Education and Skilling, with a number of foundations providing grants to education institutes (2.25). There are a number of grants and funding from organizations such as Central Square Foundation and Infosys Foundation.

Expert consultations highlighted that investors are agnostic to the location of the business in so far as the area offers a significant market, especially since technology can help overcome physical barriers. The market size is directly tied to the need for education services in each State. Since the models can target both public and private schools, the total school enrolment and the State's performance on quality of education has been viewed to inform the “priority” States list. The States identified are "large States" which have a score of <50 on NITI Aayog's SDG Index Quality of Education ranking (2.4) West Bengal has been added as it enrolls 7% of all K12 students (2.5)