India’s edtech sector, once shining bright as the pandemic's superstar, is now going through a big reset. The online-only education boom that gave investors and startups huge hopes is now facing tough limits. Over the last two years, valuations have fallen sharply and funding has slowed down. This has led to a wave of mergers and acquisitions—like a shake-up that is both a wake-up call and a chance to create a stronger industry. “Edtech had its best run during Covid as demand surged and valuations commanded a premium,” said Anil Joshi, Managing Partner at Unicorn India Ventures. He explained that when normal life returned, many pure online models found it hard to survive. “The correction was normal and anticipated due to lack of a sustainable business trajectory.” But here’s the twist: Joshi believes this is not about failure but about evolution. “M&A in general happens to fill the gap in offerings. It’s a natural phenomenon to merge rather than build, and this is a good indication for the industry as it will help make businesses more sustainable as combined entities.” Investors are now cautious, slowing down their funding. Yet some areas like upskilling and competitive exam prep keep attracting money, thanks to clearer chances of earning profits. Joshi adds, “As models stabilise and see acceptance with a wider customer base, investor interest will revive. Education remains a large market and India’s demographics make it hard to ignore.” The biggest buzz now is about UpGrad possibly buying Unacademy for around $400 million — which is less than half of the $900 million Unacademy raised so far. If this deal goes through, it will clearly show how much valuations have fallen and that joining forces is the smartest way out before growth and IPO dreams come back. In short, India's edtech story is sizzling with change—mergers, smart moves, and fresh hopes are writing a new chapter in a sector that once ruled the pandemic skies!