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Edtech start-ups return to conventional path as revenue fizzles
Online learning platforms have begun to transition back to physical classroom learning amid online fatigue and declining revenue streams, according to experts.
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Students study in a classroom at private tutoring agency EXIST in South Tangerang, Banten, in April 2022. (Courtesy of EXIST) (Courtesy of EXIST/Courtesy of EXIST)
E
ducation technology (edtech) start-ups enjoyed blistering growth during the longest school shutdowns in history caused by the COVID-19 pandemic. However, as the world began to revive in-person learning, coupled with a reduction in government-backed program funding, start-ups were forced to cut their workforces and tighten their belts.
“Online edtech revenues used to come mostly from government programs,” Edward Ismawan Chamdani, treasurer of the Indonesian Venture Capital and Startup Association (Amvesindo) told The Jakarta Post on Thursday, adding that state budget funds would go directly to program beneficiaries, avoiding reliance on intermediary platforms.
As an example, he referred to the Merdeka Mengajar program launched by the Education, Culture, Research and Technology Ministry in 2019, in which students were given funds to subscribe to online training courses of certain edtech platforms and content providers.
“Now, edtech needs to reassess and seek different sources of revenue beyond government-backed programs,” Edward continued.
Nailul Huda, an economist with the Institute for Development of Economics and Finance (INDEF), meanwhile, said edtech firms partly had themselves to blame for their current plight.
“Many edtech [platforms] are in turmoil due to management issues, limited funding and [excessive] dependence on pre-employment programs,” he added.
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