As an Investor and an education entrepreneur, I find people struggling to get answers of questions relating to investments made in Education- Mr. Akhil Shahani
In an interview with the Director-Kaizen Management Advisors Pvt Ltd and Managing Director- The Sahani Group, we were enlightened with his views about the investments that are taking place in the Education space.
Ed tech has evolved to an extent that it has started asking investors. How do you see the change, particularly as an investor?
When you look at Ed tech not only in India, but globally, education is the ast sector that is right for description because a lot is happening here. But one thing you need to understand that just because you have technology and better solutions, it does not mean that the sector will adopt it. Unlike the Financial sector and the retail sector which has taken technology very quickly. But le’ts say oil and gas and healthcare, they are not as quick to technology. Even though there are great Ed tech companies floating round, there are a couple of issues that the investors are facing. The exit for Ed tech is not happening as quickly as they want.
Talking about the 2 issues, If you are an Ed tech player which is providing education services to schools and colleges they are having a tough time scaling up because most of the time their ability to scale is based on the number of schools and colleges that adopt their solutions.
Moving forward with the second issue, when you are trying to provide education directly to the student, the barriers to Ed tech entry are so low that if you come to acquire customers, there are 10 other people with similar model that are targeting the same customers. You need deep pockets to scale up.
Ed tech today, is a bit like consumer’s internet. Ed tech obviously has potential in the long term but today, they are still trying to find that model that works in a scalable manner.
Tell us about the top measure in Education for investments?
If you are able to make a business where people are going to pay good money and your cost of pay services that the customer requires and the customer is less than your revenue that is a good measure for you. Ultimately, just because its education doesn’t mean you are going to throw away the common sense out of the window.
As an Entrepreneur, which sector would you prefer to invest?
I would invest in any sector that has less government regulations and that comes with online blended learning that is an asset like model or I would look at services to pre schools that have products and services that enables a child to learn better.