In this article, we discuss the 10 most valuable EdTech companies in the world. If you want to skip our detailed analysis of these stocks, go directly to the 5 Most Valuable EdTech Companies in the World.
EdTech is abbreviated for “education technology”. It uses computer hardware, software, and educational theories designed to facilitate teacher-led student learning. The global EdTech is a broad and diverse field that includes not only the hardware and software programs used in remote learning but also the most effective ways of teaching people new knowledge and skills.
Education Technology Trends for 2021
The Internet of Things (IoT), Machine Learning, and Big Data were the most widely followed trends for educational technology before the pandemic. The industry has been revolutionized as the COVID-19 drastically changed the way of teaching and learning. Remote learning has become the top 2020 EdTech trend due to the rapid spread of pandemic and educational institutions closures. This led to rising demand for the digital platform and may continue until 2021.
Global Potential Growth of EdTech Market
EdTech is an emerging market. As of 2018, American EdTech companies alone invested $1.4 billion in computer-aided learning. The COVID-19 has given the market extra momentum causing the sector’s huge expansion. India’s EdTech market is projected to increase by 3.7 times in the upcoming five years, boosting from $2.8 billion in 2020 to $10.4 billion in 2025.
According to an education research firm HolonIQ EdTech is reckoned to witness a compound annual growth rate of 16.3% and will continue to grow 2.5× from 2019 to 2025, reaching $404 billion in total global expenditure. The firm further reports that the EdTech and digital expenditure will make up 5.5% of the $7.3T global education market by 2025.
HolonIQ estimated a $63 billion global market size for EdTech before COVID-19. But the firm now states: “We now expect total global EdTech expenditure to reach $404B by 2025 representing a 16.3% CAGR (Compound annual growth rate) Or 2.5× growth, between 2019-2025.”
The global EdTech is paving the way for a better and all-inclusive future with revenue projected to rise exponentially as the years and decades run along. With new innovative and creative educational platforms, the EdTech market has surely revolutionized the educational sector and is becoming ubiquitous and need of the hour for nations around the globe.
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Our Methodology
We listed some of the most notable EdTech companies in the world in this article. We used market cap, funding, and valuations to choose these companies, along with the robustness and usability of their products and services. We ranked the companies based on their market cap. For private companies, we used estimated valuation and funding data. We used data from X, X and X…
We have ranked the companies according to their market capitalization and valuation. With this context in mind, let’s now discuss our list of the 10 most valuable EdTech companies in the world.
10 Most Valuable EdTech Companies in the World
10. Duolingo, Inc. (NASDAQ: DUOL)
Market Cap: $5.5 billion (As of August 15, 2021)
Duolingo is a Pittsburgh-based language learning publicly traded online platform. The company was co-founded by Luis Von Ahn, the inventor of CAPTCHA and reCAPTCHA, and Severin Hacker in 2011. Duolingo, a language-learning platform, helps people read, listen and speak various languages on a single platform. The company operates in more than 30 countries providing more than 30 languages. Duolingo offers podcasts, stories, and live events around the world. The company provides 31 social clubs and 40 board games. The company owns 400 employees and 13 investors providing equal opportunity for both males and females.
9. Masterclass
Valuation: $2.75 billion
Masterclass, founded in 2012, is a US-based operator of an online educational platform that offers video-based online vocational courses. Masterclass EdTech company offers video lessons, series of course materials, and interactive exercises which are taught by celebrities, athletes, and business executives. Thus, Masterclass enables learners to gain expertise and enhance their academic and professional orientation. The company provides 100+ classes from the world’s best instructors across 9 categories, 20 lessons average per class with 10 minutes average per lesson. The company has 539 employees and 46 investors. Masterclass believes in the values of diversity, equity, and inclusion.
8. Age of Learning
Valuation: $3 billion
Age of Learning is a US-based educational platform operator. The company was founded in 2007 with the intention of providing help to children in building their strong foundation for academic success. The company’s educational portfolio includes Adventure Academy, ABCmouse English. The company also offers personalized adaptive learning programs such as My Math Academy and My Reading Academy. Age of Learning’s ABCmouse English portfolio offers 10,000 + educational activities and 850+ complete lessons along the step-by-step Learning Path. The company hosts 668 employees with 3 financing rounds.
7. ApplyBoard
Valuation: $3.2 billion
ApplyBoard is a Canadian educational technology company that was founded in 2015 by brothers Martin, Meti, and MASSI Basiri. The company connects international students, recruitment partners, and academic institutions on one platform. ApplyBoard has partnerships with more than 1,500 primary, secondary, and post-secondary educational institutions. The company is currently working with 7,500+ recruitment partners. ApplyBoard is one of the largest online platforms for international student recruitment that assists more than 200,000 students across the world. The company has campuses across Canada, the United States, the United Kingdom, And Australia with 30 investors and 1000 employees.
6. Udemy
Valuation: $3.3 billion
Udemy, a US-based massive open online course (MOOC) provider, is one of the leading global marketplaces for teaching and learning which connects millions of students to the skills they require to succeed. It offers 155,000 online courses in 65 different languages with more than 70,000 expert instructors. As of December 2020, the online digital platform connected 40 million students mastering new skills around the globe. The pandemic dramatically accelerated the future work of EdTech. As countries enacted national closures, course enrollments at Udemy increased more than 425%, consumption across Udemy for Business surged 90%, and there was an increase of 55% in course creation by instructors. Due to the rise in demand for online learning the company raised $50 million at a $3.25 billion pre-money valuation in a Series F financing which will enable the company to continue to grow its consumers and business products.
5. Articulate
Valuation: $3.75 billion
Articulate is a US-based EdTech company that offers online learning and training courses. Articulate, developer of e-learning software, allows users to develop interactive courses that work on every device without any manual right in a web browser. This enables clients to create e-learning courses for their learning management system (LMS). The company owns 106,000 organizations with 112 million learners. Articulate operates in 161 countries. The company’s award-winning products include articulate 360, Rise, Zillow. The company, founded in 2002, hosts 300 employees and 6 investors.
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4. VipKid
Valuation: $4.5 billion
VipKid is a Chinese-based EdTech company designed for an online English language learning platform. It connects millions of paying students with teachers in the United States and Canada. Students receive 25-minute English language lessons from expert English teachers. The COVID-19 proved to be blessings in disguise for online education companies as VipKid’s customers increased 3.6 times in 1H 2020 with 150 million one-to-one courses. The company is currently hosting 800,000 paying students and 90,000 American foreign teachers. It has recognized the large-scale application of AI in online teaching. The number of AI interactive courses exceeds 1 million covering 100,000 students. The company is constantly growing and adjusting its products.
Photo by Jerry Wang on Unsplash
3. Zuoyebang
Valuation: $10.0 billion
Zuoyebang is one of the largest Chinese EdTech companies that offers a platform for online courses, live lessons, and homework help for kindergarten to 12th grades students. It was launched in 2015 supporting both IOS and Android. The company claims 170 million active users of whom 50 million are seeking service each day. In 2020, the total number of students in the company’s paid Livestream classes reached more than 10 million setting a record in the history of the industry. A large competition exists among China’s top online learning apps which has become even more intense due to COVID-19. Zuoyebang company scored a significant funding round which raised $1.6 billion Series E+ from the investors. While the company expects online education continue to grow in the longer term and expands its products accordingly.
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2. Yuanfudao
Valuation: $15.5
Yuanfudao is a Beijing-based EdTech company that provides online courses and tutoring through an online platform. It is a K12 online education institution established by Li Yong and Li Xin in 2012. Yuanfudao is the biggest company in China with a $15.5 billion valuation making it one of the most valuable private EdTech startups across the world. As of 2020, the company witnessed more than 400 million users. Yuanfudao offers several online learning products including an online question bank, mathematic problem checking app, question searching app to name a few. According to iResearch, china’s online education industry could be worth $81 billion by 2022.
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1. Byju’s
Valuation: $16.5 billion
Byju’s is a multinational educational technology-based in Bangalore, India. It was founded in 2011 by ByJu Raveendran and Divya Gokulnath. As of June 2021, the company is worth $16.5 billion making it the most valuable educational technology in the world. The company has 40 million users of whom 3 million are annual paid subscribers with an 85% retention rate. Byju’s furnish online courses for students from class 4 to 12. The company enables students to prepare for the examination such as IIT-JEE, NEET, IAS in India and international examination such GRE and GMAT. Byju’s works with the vision of providing students with a complete learning experience from the best of teachers across the world.
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Disclosure. None. 10 Most Valuable EdTech Companies in the World is originally published on Insider Monkey.
