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Big Coaching Centers on the Verge of Closure: Why Is Trust in EdTech Declining in India?

by Bharat Bytes
January 24, 2025
in Tech
EdTech crisis in India, Decline of online education platforms, Financial challenges in EdTech, Byju’s funding issues, Safety concerns in offline coaching centers, FIITJEE financial crisis, Mukherjee Nagar coaching fire incident, Student engagement in online learning, Challenges in Indian education system, Future of coaching centers in India, EdTech vs offline learning, Online learning trust issues, Coaching center closures in India, Education sector safety standards, Pandemic impact on Indian education, Education business in India,
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The Rise of Coaching Centers in India

India has long been a hub for coaching centers, both offline and online. With the world’s largest network of higher education institutions, the demand for these centers once flourished, and many even gained global recognition.

Surge in Popularity During the Pandemic

The COVID-19 pandemic brought a significant shift in the education landscape. As schools and colleges moved online during the lockdown, coaching centers adapted to digital platforms. Many believed this shift would revolutionize education in India, breaking barriers and making quality learning accessible to all.

Prominent professors launched online courses, and reputed institutions began offering classes online, enabling students to learn from the comfort of their homes. This surge in EdTech appeared to signal a promising future for online education.

The Decline of EdTech in India

Despite its rapid growth, the EdTech boom is now faltering. Parents and students alike are turning away from online learning, leading to a decline in trust and interest.

Why Is Online EdTech Losing Ground?

  1. Lack of Student Motivation
    One of the primary reasons for the decline in online education is a lack of student engagement. Unlike offline classes, students often struggle to stay motivated in a virtual learning environment.
  2. Incomplete Course Completion
    Platforms like Udemy and Byju’s have observed that many students abandon courses midway. A report by Udemy revealed that most learners complete only 30% of the course content, while some never even start after paying.
  3. Financial Challenges for EdTech Companies
    Byju’s, a leading EdTech company, is currently grappling with a severe funding crisis. Despite reaching a valuation of $22 billion in 2022, the company has faced allegations of mismanagement and struggles with dues repayment.Last year, Byju’s faced legal action after U.S. lenders accused the company of misusing ₹8,300 crore in borrowed funds, leading to bankruptcy.

Challenges Faced by Offline Coaching Centers

The decline isn’t limited to online platforms. Many offline coaching centers are also struggling to survive due to financial constraints and safety issues.

FIITJEE’s Financial Crisis

FIITJEE (Forum for Indian Institutes of Technology-Joint Entrance Examination), a reputed coaching institute, is facing a financial and administrative crisis. Several branches in North India have shut down due to non-payment of salaries to teachers, licensing violations, and fire safety concerns.

This abrupt closure has left students and parents distressed, especially during board and entrance exam seasons. Many parents have filed complaints, alleging that FIITJEE is refusing to refund fees.

Safety Concerns in Offline Centers

Poor safety standards have also contributed to the downfall of offline coaching centers.

  • In 2023, a fire broke out in a Mukherjee Nagar coaching center in Delhi, injuring over 60 students.
  • In another incident, three civil service aspirants lost their lives due to waterlogging in the basement of Rao IAS Study Center in Old Rajinder Nagar, Delhi.

Following these incidents, the Delhi government took stringent action, sealing over 20 coaching centers that violated safety norms. Such tragedies have raised serious concerns about the reliability of offline centers.

Conclusion

Both online and offline coaching centers in India are facing significant challenges. While the online sector struggles with student engagement and financial mismanagement, offline centers are plagued by safety concerns and operational failures.

The education sector must focus on rebuilding trust by prioritizing student engagement, quality education, and safety measures to ensure the long-term success of both online and offline learning platforms.

Tags: Byju’s funding issuesChallenges in Indian education systemCoaching center closures in IndiaDecline of online education platformsEdTech crisis in IndiaEdTech vs offline learningEducation business in IndiaEducation sector safety standardsFIITJEE financial crisisFinancial challenges in EdTechFuture of coaching centers in IndiaMukherjee Nagar coaching fire incidentOnline learning trust issuesPandemic impact on Indian educationSafety concerns in offline coaching centersStudent engagement in online learning
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