Why Indian Edtech Startups are Now Heading for the IPO Route Industry insiders expect the next 12-24 months to see a handful of listings from established players in higher education, skilling, and professional upskilling segments

India's edtech sector is showing signs of a reset as companies prepare for public listings. This time, industry players say, the focus is not on hypergrowth or investor frenzy, but on profitability, predictable revenue, and public market ambition.

The first signs of this shift are already visible. "We are in the process of filing the DRHP, and the plan is to list in the public markets. It takes about three months for the approval, and then you can go to market distribution. So, our prediction is that one year from now we will be listing," said Nikhil Barshikar, CEO and co-founder of Imarticus Learning.

Imarticus joins a growing group of education companies eyeing the bourses. PhysicsWallah, one of India's most profitable unicorns, has updated its DRHP for INR 4,600-crore issue, while platforms like upGrad and Eruditus are reportedly working toward profitability with the aim of listing over the next two years. Reports also suggest that even test-prep and skilling firms such as Simplilearn and Leverage Edu are considering the public route soon.

What's Driving the IPO Wave

Industry insiders expect the next 12-24 months to see a handful of listings from established players in higher education, skilling, and professional upskilling segments of edtech.

"Edtech industry has gone through its ups and downs, and has never been a sector that is very predictable. There are very few companies that can actually go IPO successfully," said Nikhil Barshikar, adding, "But now, more and more companies are spending time cutting businesses that are not profitable or predictable. My gut is that in the next 24 months, we will have at least five to ten listings from the edtech vertical."

His optimism aligns with broader market trends. According to PhysicsWallah's updated DRHP filing, India's education market is currently valued at INR 15–16 lakh crore (USD 185–195 billion) and is expected to touch INR 24–26 lakh crore by FY2030, growing at a CAGR of around 10 per cent. Within this, the online learning segment is expected to grow at a 25–26 per cent CAGR, reaching nearly INR 41,500 crore by 2028, as per Redseer and Grant Thornton estimates.

Investor interest is slowly returning. After two sluggish years, funding in the edtech space rose five-fold in H1 2025, to USD 120 million across 11 deals, compared to USD 22 million across seven deals during the same period last year.

Profit Before Scale

While the first generation of edtech startups, led by unicorns like BYJU'S, Unacademy, and Vedantu, built their valuation stories on scale, the sector's next phase is being defined by sustainable unit economics, diversified revenue, and Tier-2, Tier-3 market expansion.

Barshikar explained, "When we started, we were completely B2C and finance-focused. Then we added analytics and technology, executive education, and B2B. Now, only 50 per cent of our revenue comes from finance. The other 50 per cent is from analytics, technology, digital marketing, and others."

Platforms like upGrad and Eruditus have doubled down on executive and corporate learning programmes, while PhysicsWallah is expanding into offline centres to sustain profitability. Similarly, EdTech Simplilearn has been profitable for two consecutive years and is reportedly exploring IPO options as early as 2026, reports suggest.

Sanjay Salunkhe, Founder, Chairman and Managing Director of Jaro Education, echoed a similar sentiment about the sector's shift toward financial discipline.

"Since inception, we have seen profit-making on a standalone basis. Before IPO, we never got into any funding. So we had the courage to play our game on our own. When you are doing everything on your own, borrowing from the banks and growing, you're mindful of the profitability," he said.

Salunkhe added, "Our IPO got 20 times oversubscribed. That means there is an interest. Growth is okay, but you should be ensuring profit."

For Imarticus Learning, the next stage of growth will involve both organic and inorganic expansion. "There are two things — organic and inorganic growth. In organic growth, we will set up more centres in Tier 2 and Tier 3 towns. Inorganic growth is about consolidation. There are a lot of companies that have reached a certain scale and profitability and are now stuck. It makes sense to consolidate them. We will do about four to five acquisitions," Barshikar said.

Why the Market Window Looks Attractive

The timing also favours new listings. India's IPO market is on track for a record year, driven by strong domestic institutional participation and stable macroeconomic conditions.

Edtech players, which were once seen as risky, now have the chance to reintroduce themselves to public investors with stronger fundamentals.

For now, the startups are focusing on sustainable growth, real learning outcomes, diversified revenues, and governance discipline.