How to start profitable Education startup?

How to start Profitable Education startup?

In a time when 

We’re learning remotely

Working remotely

Buying remotely

Starting an online business is highly recommended.

Education is one of business which touches the everyone’s life.Inspired by the success of many Edtech startups, frequently ask questions are …

What is an education startup/Edtech?

Education startup /Edtech are new generation educational ventures which offer education online or offline with advance technology like AR,VR,remote delivery etc. Edtech startups are shaping the whole education industry in digital era.

How to start Education startup ?

Starting Edtech is easy when you have clear startegy in your mind.Here I am sharing the highly successful step wise approach to start Education startup with state of art technology known as EdTech startup.Starting education startup is easy when anyone have teaching,technology and business background  but finding the right combination is near to impossible.

First of all we should understand the Education startup !

Education is very demanding and technology can fulfill the aspirations of learners in changed environment.High growth impact oriented new business is known as startup.Here I am considering Education startup as an EdTech.

Delivering the Education with the help of technology is EdTech. Technology enable the learners and teachers. Edtech is the practice of introducing IT tools into the classroom to create a more engaging, inclusive, and individualized learning experience. EdTech is fusion of education and technology. As per analysts, EdTech is one of the highest growth businesses. Ed-tech business is providing quality education with the support of technology to customers. Education experts,technology experts,investors can come together and start an Edtech startup.In market there are many learning management systems are available.

EdTech in action

EdTech ecosystem largely depends upon four pillars

1. Quality of content- How engaging and useful content is you are offering ?

2. Smooth delivery of content- User-friendly delivery of content.

3. Quality Assessment of candidates- Robustness of assessment system.

4. Faculty -Quality of faculty is very important.

Success largely depends upon the above four pillar.

Ed-tech is a big opportunity for people who are offering quality content with seamless cost effective technology.

Below I am suggesting the stage-wise approach to validate the idea and then convert it into a successful Ed-tech business.


1.Do market research which segment -curriculum, competitive, life skills,test preparation etc.

2.Who are the target customer segments ?- junior, higher secondary, graduates, professional, lifestyle etc.

3.How current customers are fulfilling their needs?

4.Is there any better way you can offer to solve their problem?

5.Our customers are willing to pay for your solution?


Now come to the delivery point

1.What technology is best suitable to provide education? For example mobile,tablet,desktop etc.

2.Develop technology +product blueprint and discuss with experts and compare with existing solutions.

3.Ed-tech needed a robust learning management system (LMS) 

Stage-III-(at least 100 customers with one month) 

Now go for the pilot in real-life situations and sell at least 100 customers and get the feedback. Based on feedback improve your business. Beta version will help you to attract user’s feedback.

Stage-IV-(at least two months with 1000 customers) 

Now you are ready to go to market with the beta version. Offer discounts and referrals for the beta version so that you will be ready for your final launch.Testing the platform with real time mode will build the capacity to solve the challenges.

Stage-V-Launch your Ed-tech product with a proper launch strategy.

Highly successful  educational spaces are
1) Language skills
2) Common core skills
3) Testing and/or data
4) Customization through gamification

Study of major verticals and leading industry players will be helpful to zero down the niche.

K-12 – These companies focused in KG to grade 12 school segment, Leading companies catering here are- Xseed education, ClassKlap, Chrysalis, Pearson, Funtoot etc

Higher education – These companies are focused on college level or university level education, ex-Oxford university press, Cambridge university press etc.

Test Prep – These companies are focused on online content delivery for competitive exam preparations. Few good players are OliveBoard, TopRankers, Career power, Etc.

E-Learning – These companies target individual people or school/institute- they provide their content through the internet, Toppr, Byju’s comes in this segment.

Gaming – These companies have developed various educational games, this is growing vertical in edtech industry. StudyPad, Logic roots are some name which is working here.

MOOC – It stands for Massive online open course companies, these companies provide various professional certification courses. UpGrad, Udemy, Coursera are some player in this segment.

Revenue models for EdTech

There are many highly successful revenue model exists for EdTech.

1.Freemium model

2.Content Licensing

3.One Time Pay Model

4.Pay for Use Model or Pay Per Student Pricing Model

5.Monthly/Yearly Membership Model (typical SaaS model)

6.All of the 3 above (2-4) with a la carte feature add-ons

7.Independent sales agent/consultant model

8.Lead gen type model with other ed tech or ed. curriculum companies

Growth strategies for EdTech

Growth is very important for any EdTech.The big number of students, institutions, and geographies will improve the competitiveness of products. To measure growth below matrix can help 

A.Customer Acquisition – Enrolling new students 

B.Customer Engagement – Students using your product.

C.Customer Activation – Students registering and subscribing to the product

D.Customer Retention-Students returning and subscribing again.

Marketing your EdTech

The potential for scalable individualized learning can play an important role in EdTech’s popularity. Marketing potential benefits can increase the outreach. The EdTech marketing team needs to address the three-segment 

1.B2B segment-Academic institutions like Colleges, schools, universities, etc. 

2.B2C segments –Parents , students and teachers

3.Stakeholders-CSR, Philanthropic organizations, government agencies, NGOs etc.

Publish every stage findings and academic improvements of students  in social media regularly.This will create the brand awareness. Organizing free webinars with offers will help to attract the serious customers.

Publishing user experience and success stories will help to reach more students.

Running contest, offering scholarships, etc. are the strategies are highly successful.

Parents,teachers and educational institutions needs to be address in marketing communication.

Approaching to investors

Investors normally brings the fund , strategic advantage and expertise.Timely entry of investors will increase the chances of success.I suggest,when you have around 1000 paid customers and more than 3 months history, start approaching investors. Investors look for 1. Viable business 2. Paid customers 3. Tested product 4. Entry barrier 5. Scalable model

While pitching to investors keep handy 1. Proof of concept 2. Proof of sales 3. Ability to run the Edtech 4. Capacity to attract investment.

Initial traction and robust business model will help to attract investors.

Challenges in EdTech growth

“Opportunities don’t happen, you create them.” –Chris Grosser

A. Team

Role of team is very important in any EdTech startup.One education expert,one technology expert,one marketing expert and one finance expert can make minimum viable team.


Try to build the team of co-founders with black and white terms for long term growth.

B. Competition 

EdTech marketing has become highly competitive. Competition verifies the market potential. EdTech can beat the competition based on below mention  five strategic  pillars. 

1.Price 2. Quality 3. Assessment 4. Suggested improvement 5.  Technology 


EdTech needs to introduce economical pricing strategies that can meet the purpose of all schools and institutes, irrespective of their budget. Offering free products and services to the end-users, along with exploring alternate monetization options through partnerships and other models, could be one such approach.  

 C. Privacy concern

Many customers are worried about their data and privacy. Somehow, they believe that the integration of technology with education will compromise the integrity of personal data and pose serious concerns.


Awareness is the key. EdTech should demonstrate that its technologies are completely safe and secure. Help them understand that crucial data will not be lost anywhere in the process.

D. The gap between the academic and EdTech world 

Studies suggest that this is one challenge in the education industry that most EdTech face.

It is all about the difference in ideologies.

While EdTech focuses more on action items, results, deliverables, and iterations, this is completely different in the academic world. Education is all about discussing, debating, and learning.


Nothing comes easy, and EdTech would need to better embrace the academic world. Communication and sharing outcomes with data support will help EdTech to build its image.

As a responsible EdTech, you have to demonstrate the real value and benefits of  technology to learners.

It is important to keep in mind that change in the education industry does not come easy. You will have to present a strong case to doubtful decision-makers. It is necessary to showcase the usefulness of your product and focus on its innovative features that aim to enhance learning.

This will encourage the early adoption of your product among the students and your EdTech.

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