The Vietnamese education market has been witnessing a tremendous number of educational technology startups being established amid the pandemic. Despite their young age, many online teaching and learning startups have successfully raised millions of dollars in investment capital to accelerate operations.
Recently, an online tutoring platform called Clevai announced that it had received $ 2.1 million in a pre-Series A funding round from Altara Ventures, an investment fund based in Singapore. Launched in August 2020, Clevai is an online teaching platform, with an application of artificial intelligence (AI) for high school students. What makes Clevai special is the ability to personalize the learner’s experience based on their learning history, thereby providing learning resources in the form of a tailored pathway, and later providing timely assessments to ensure progress.
The epidemic situation and social distancing regulations have boosted the demand for online learning at all levels, which is also an opportunity for edtech startups to step in. The potential of the online education segment, despite being at a very early stage in Vietnam, attracts many domestic and foreign investors to pour capital into it. In the midst of the pandemic, many edtech startups have successfully called for investment of millions of dollars.
Another prominent example is Marathon, a Vietnamese online tutoring startup that recently announced it successfully raised $1.5 million in pre-seed funding from Forge Ventures, Venturra Discovery, and iSeed, along with other angel investors, eventhough it has only been established since early 2021. Marathon’s main group of customers are immediate audience of students in grades 6-12, to whom it offers online lectures and “break-out” sessions where students can split into groups and ask for support directly from a tutor.
Operating in the field of coding training, CoderSchool, a “6-year-old” edtech startup, has just announced that it has received $2.6 million in series A funding led by Monk’s Hill Ventures. A representative from the company shared that since the beginning of 2020, the number of students enrolling in the company’s online learning has increased by 100% every quarter.
CoderSchool startup team. Photo: CoderSchool
At the end of August, venture capital fund Do Ventures announced an undisclosed investment in Vuihoc, an online education platform focused on primary level with 3 subjects: Vietnamese, English, and Math, in accordance with the standards of the Ministry of Education and Training. After only two years of operation, the EdTech startup has had its first round of funding.
Another educational technology startup that has also received investment recently is Educa Joint Stock Company, with $ 2 million in Series A from Redefine Capital Fund, an investment fund backed by Alibaba. Founded in 2018, Educa brings online English learning solutions for Vietnamese students with lectures from native teachers and personal lessons tailored with AI technology and adaptive learning mechanisms.
Two of the largest investments in educational technology startups in recent years are English learning startups, Equest and Elsa, who recently raised $100 million from KKR and US $15 million led by Vietnam Investments Group, respectively.
The consequences of the COVID-19 pandemic in the last two years have revolutionized companies in the Edtech sector, providing opportunities for these companies to accelerate and scale up. According to Forbes, the global virtual learning service and education market could reach $181 billion by 2025, according to Forbes.
“This potential for edtech startups in Asia is tremendous, Indeed, Asia has been home to the largest and fastest growing number of edtech businesses in the world. Among them, edtech startups have created many breakthroughs and thus have created many breakthroughs. People of Asia are thought to be more adaptive to changes as a result of technological advancements, including edtech. Thus, there would be a much higher level of competition in this market in the future” According to Forbes.
According to Bain & Company, the average Vietnamese family spends about 20% of their disposable income on education for their children, compared with 6-15% in other Southeast Asian countries. Ken Research estimates that by the end of 2023, Vietnam’s e-learning market will have reached a value of over $3 billion, with an increase in the number of foreign companies entering the market.
Phong Van. “Educational Technology Startups and the Financial Market.” VNEXPRESS, 2022, startup.vnexpress.net/tin-tuc/xu-huong/startup-edtech-ram-ro-goi-von-4359369.html. (Accessed Mar. 1, 2022)
Translator: Pham Hoang Hung