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India's education sector, especially offline coaching centres, was once booming. The country played a key role in the global education landscape, with the largest network of higher education institutions in the world. When Covid-19 hit in 2020 and a lockdown was imposed, all classes were forced to go online. Everyone thought this would change education in India forever, breaking down barriers and making quality learning accessible at a click for everyone. Professors recorded their lessons and students began learning at their convenience.
However, what once was flourishing, began collapsing soon.
Financial crisis, lower input costs, and cases of illegal registrations have been some of the factors responsible for the downfall of the edtech system in India.
Why is online edtech not booming?
After years of online education, many parents are sending their children back to offline classes. According to reports, this is mainly due to a lack of motivation.
Institutes like Coursera, Udemy, and Byjus offer online courses wherein teachers record their lectures or set a time for live discussions and students join in. But a report by Udemy claimed that most students complete just 30 per cent of the content and leave. Some even pay for the course, but never start it.
Similarly, Byjus which offers online learning programs, has been facing a severe funding crunch. It became popular during the Covid-19 pandemic and its valuation shot up to $22 billion in 2022. But since then, it has faced demands for unpaid dues and allegations of mismanagement. It also allegedly entered into insolvency after US lenders complained to the Supreme Court last year about the misuse of $1 billion borrowed by the company.
But then why are offline education centres collapsing?
Many key factors such as financial crisis and safety issues recently have contributed to the collapse of the sector.
FIITJEE centres shut down
FIITJEE (Forum For Indian Institute of Technology-Joint Entrance Examination) has been going through a crisis amid speculation over the institute's financial crisis and troubles due to fresh administrative and civic action against its branches for violating licensing and fire safety rules. At least eight FIITJEE coaching centres across North India have abruptly shut over the past week, leaving hundreds of students and parents fuming ahead of board and entrance examinations.
The closure came after several teachers at the institute quit en masse due to unpaid salaries, officials said.
Many parents have filed police complaints, alleging that the private coaching institution did not give them any notice or their refunds. Several pictures and videos showed the parents protesting outside the institute's now-shut branches.
Accidents and crackdown
In 2023, a massive fire erupted at a coaching institute in Mukherjee Nagar in Delhi, injuring over 60 students. Last year, three civil services aspirants lost their lives after a sudden surge in rainwater flooded the basement of a building in central Delhi's Old Rajinder Nagar, where Rau's IAS Study Circle ran a coaching centre. The three victims - Shreya Yadav (25) from Uttar Pradesh, Tanya Soni (25) from Telangana and Nevin Delvin (24) from Kerala - drowned in the flooded basement.
The Delhi government since then begun a big crackdown against coaching centres in the national capital. Over 20 centres - which violated safety norms - were sealed immediately in the aftermath of the basement tragedy. Civic authorities also took out bulldozer action near institutes where encroachment led to blocked drains, compounding the waterlogging issue.
Amid the crackdown, officials also found several coaching institutes that had illegal or no registered documents.