Edtech funding collapses after pandemic high

Global edtech investment peaked at $16.7 billion in 2021 but fell to less than $3 billion in 2025, according to Tracxn. The majority of global edtech funding comes from US-based venture firms. Investors are now prioritizing AI tools and training platforms that help companies hire, cut costs, and teach workers new skills. Edtech startups have struggled with high customer acquisition costs, long sales cycles, and low retention rates. Indian edtech company Byju's and Nigerian startup Edukoya shut down due to financial crises and weak profitability. Nonprofits like Khan Academy have filled the gap in areas where online schooling is essential, such as Afghanistan. In China, the government's 'double reduction' policy crushed the K-12 online education sector, leading companies like Yuanfudao to pivot to AI hardware.