Did you know that local edtech startups have also started their expansion overseas?
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In a rapidly developing global economic environment, education helps ensure that our workforce keeps up with changing needs. In a bid to realize Singapore’s Smart Nation vision and get a piece of the global education technology (edtech) pie, which has been estimated to hit US$252 billion by 2020, several edtech local start-ups have been gaining quite a bit of attention – both locally and internationally.
Singapore is obsessed with education and the amount we spend to secure quality education is tremendous. A 2016 Global EdTech Report noted that Singaporean families spent 13 times more on education in 2012, compared to what was spent in 1985. Hence, it’s no surprise that eager tech entrepreneurs have ventured down this lucrative path.
A 2016 HSBC survey also revealed that a majority of Singaporean parents would even go into debt just to secure a better quality of education for their children. While edtech startups in the West have gotten the bulk of investors’ attention thus far, Asia is giving the US a run for their money.
For example, let’s take a look at Tueetor Pte Ltd. A local edtech startup that aims to cut out the middleman when it comes to matching tutors to students, Tueetor managed to clinch a US$1.48 million investment late last year from iGroup (Asia Pacific) Ltd. With the increase in capital, the app has made plans to launch in five different Asia Pacific markets over the next two years – namely Thailand, Malaysia, Hong Kong, Taiwan, and China.
Similarly, other local edtech startups have also started their expansion overseas. Cialfo, an app that uses “machine learning algorithm” to help students gain admission into their desired college, opened an office in Shanghai, China in October last year. This move was strategically made to extend their reach into the market of Asian students who apply for universities overseas, estimated to be worth US$4 billion. Cialfo has gone through two round of funding thus far and has plans to expand into large markets, like India, in the near future.
The shift away from a purely school environment is evident with the growth of tuitions centres and private tuitions in Singapore over the years. With the arrival of edtech, it is set to disrupt the traditional tuition industry by lowering the barriers of entry into this highly competitive education industry.
According to Ericsson’s Mobility Report in 2016, it is reported that Singapore’s smartphone penetration rates in Singapore have exceeded 100%, as compared to the 40% average in Southeast Asia. This coupled with first-class infocomm infrastructure network, it is no doubt that Singapore makes the perfect breeding ground for edtech.
