India, Jan. 15 -- While the Indian edtech startup ecosystem moved towards what some might call a recovery phase in 2024, with a surge in private investments as well as the first edtech startup listing in the form of PhysicsWallah, the momentum was all but fleeting.

Edtech startup funding plummeted by 56% year-on-year to $249 Mn from $572 Mn invested in 2024, as per Inc42's Annual Indian Startup Trends Report, 2025. Funding for the sector, once the poster child of India's burgeoning startup ecosystem, dropped to an 8-year low in the previous year.

Deal count in the sector also took a major hit in 2025, down 35% to 31 deals closed in the year under review from 48 in 2024. In comparison, 172 deals were closed in the edtech industry during ...