By AltG Research On Behalf Of Poornima Vardhan And Taponeel Mukherjee
The BYJU'S and Aakash saga has brought attention to the issues surrounding startups in the education space in India and the remarkable investor interest in this sector. However, amidst this spotlight, there lies an even more significant potential play that investors seem to be overlooking.
The first factor to consider is identifying latent demand by studying the micro structure of the market. With the next 400 million Indians projected to enter the middle class and the rapid growth in various sectors like healthcare, services, retail, automotive, and global capability centers, there exists hidden demand for skilled workers to join the job sector. Businesses focused on skill development have the opportunity to unlock this latent demand and create employment hubs in India. Moreover, by adequately skilling the workforce, India can become a major exporter of skilled labor to the world.
The second structural factor pertains to the ageing global demographic. This demographic shift creates a unique opportunity for India to collaborate with other countries and export skilled service providers. In a future where specialised healthcare services are in high demand, India has the potential to birth the next Infosys-like success story, but in the form of a healthcare staffing export firm.
Lastly, identifying tectonic shifts on the ground driven by macro changes is crucial. While investments have predominantly flowed into the K-12 and exam preparation space, there is a massive untapped investment opportunity in the skilling sector. By recognizing the transformative changes and macro trends that drive the demand for skilled labor, investors can tap into this burgeoning area of the education market.
In conclusion, the BYJU'S - Aakash saga have highlighted the potential and challenges in the education startup landscape in India. However, investors should not overlook the significant opportunities in the skilling space, driven by latent demand, global partnerships, and macro trends. Businesses that focus on skill development have the potential to create employment opportunities, facilitate India's growth as a skilled labor exporter, and generate legendary investment returns.