The Indian edtech sector is showing signs of recovery after being shaken by the downfall of Byju's, once a leading company in the industry. While the funding peaks of the pandemic years have not been reached, industry players and investors believe the sector is now poised for sustainable growth, focusing on governance and financial sustainability rather than just rapid expansion. In 2024, venture capitalists invested $741 million across 103 rounds, compared to $556 million the previous year.

Several edtech companies are demonstrating growth, higher revenues, and reduced losses. PhysicsWallah (PW) saw its revenue jump by 160% in FY24, and is preparing for a $500 million IPO. Adda247 reduced its net loss by 66% while increasing sales by 88%. Teachmint and Classplus also doubled their revenues, while upGrad experienced a 30% year-on-year growth. LEAD School reduced its cash burn by 65%, increased revenue by 25%, and expects to be profitable by FY25. Great Learning achieved a positive EBITDA with a 23% rise in revenue, and Eruditus posted an EBITDA profit with a 15% revenue increase. Unacademy also significantly cut its losses.

The integration of Artificial Intelligence (AI) is considered a key factor in the resurgence of the Indian edtech sector, offering hope for a more engaging and personalized learning experience. AI is redefining education by enabling personalized learning experiences, enhancing educator efficiency, and making education more accessible.

AI's adaptive learning abilities have a significant impact on education delivery. Leading Indian edtech platforms are utilizing AI to analyze student performance and suggest tailored learning experiences. AI-powered tools automate repetitive tasks for teachers, such as grading and attendance tracking, freeing up their time for lesson planning and student engagement. AI can also assist teachers in designing lesson plans tailored to specific curriculum standards or student needs. Furthermore, AI facilitates multilingual learning by developing voice-based learning models in local languages, helping students bridge language gaps.

The Indian government's New Education Policy (NEP) 2020 emphasizes the integration of AI at all educational levels, equipping students with skills like digital literacy, coding, and computational thinking. CBSE has introduced AI as a subject for students in classes IX to XII and partnered with IBM to launch the SkillsBuild Program, which includes orientation sessions on generative AI.

Edtech companies are using AI to personalize teaching, accommodate multi-lingual and differential learning, and provide real-time assessments. AI algorithms customize course material based on student performance, and AI-powered analytics identify learning gaps and provide actionable insights. PhysicsWallah (PW) is using AI to bridge the language barrier for students, scripting course content in regional languages, dubbing it, and enhancing it with AI to replicate the experience of in-person lectures.

Several AI-powered EdTech solutions are emerging in India, with companies like EduTechEra leading the way in intelligent learning. These platforms offer adaptive learning, smart content with interactive simulations and gamification, and real-time feedback. Early and growth-stage startups are using large language models and AI chatbots to offer engaging learning experiences.

The Indian edtech sector is witnessing a surge in demand for AI courses, with many learners eager to explore and experiment with the technology. According to the 2025 Global Workplace Skills Study, a significant percentage of professionals in India want to be AI-ready and upskill themselves.