MAM
Why Indian ed-tech companies are going global
MUMBAI: The advancement in technology has brought about various revolutionary changes in the educational sector in recent years. Post the rise of ed-tech start-ups, students in India are enjoying personalised learning experiences, and as a result, the popularity of these companies among kids and grown-ups alike has risen dramatically.
From appointing film superstars as their brand ambassadors to offering virtual learning experiences to users, ed-tech brands in India are pulling out the stops to become the top name in the education industry. Several ed-tech companies in India have already emerged as big names, and they are now gradually extending their reach to foreign countries as well.
The rise and rise of Byju's
With a user base of over 65 million and a bunch of A-listers promoting it, Byju's is undoubtedly the most popular ed-tech platform in the country. Launched in 2011 by Byju Raveendran, Byju's, in the course of years has emerged as the most trustworthy ed-tech platform for students in India.
Over the years, Byju's has acquired several other players in the ed-tech space, like coding platform WhiteHat Jr, TutorVista, offline test prep Aakash Educational Services, Osmo, etc. Valued at $11 billion, the Byju Raveendran-led start-up is now eager to make its presence felt in the international market.
Byju's is already a known name in the US ever since its acquisition of Osmo, an American learning start-up that is popular among kids aged between five and 12. During the Disrupt 2020 conference, co-founder & CEO Byju Raveendran had claimed that the company has plans to launch a digital learning app aimed at kids in several English-speaking markets. He also added that WhiteHat Jr will introduce math subjects to students in Australia and New Zealand. The company is also angling to expand its operations to countries like Singapore and Germany.
On the marketing side, Byju's is a brand known for its close association with the Indian Premier League (IPL). Star Sports, the official broadcaster of the IPL, has roped in 18 sponsors for this year's tournament, and Byju's has once again made the cut. As the reach of IPL is unparalleled in India, the ed-tech giant will likely continue its association with cricket in the coming years too. Moreover, the popularity of IPL is not just confined to India, and it will help Byju's to familiarise its brand among foreign viewers too.
upGrad: Offering courses to Indian learners from foreign universities
Headquartered in Mumbai, upGrad is one of the largest homegrown online learning companies. It was recently reported that the start-up is planning to increase its line-up of global universities threefold in 2021.
Touted to be India's largest higher education firm, upGrad has already expanded its worldwide network of top universities by partnering with the University of Essex (Online), Duke Corporate Education, and Michigan State University. This move will help Indian students to pursue higher education from top-rated foreign universities, the company had said.
"2020 has been the year when we grew over 100 per cent in terms of both, national and international university partnerships. We introduced global MBAs and made them one of the highest revenue-making verticals. Now with the recent tie-ups, we have grown three times our program portfolio to cross 100+ programs. The figures are set to double in 2021," said upGrad co-founder Phalgun Kompalli told Bloomberg Quint.
Last year, upGrad inked a deal with Star India to run its latest ad campaign during IPL matches. On the back of its association with the league, the e-learning platform aims to expand its global reach with an advertising blitz this year as well.
Mindler aiming sky high
Mindler cannot be considered purely as an online teaching company; rather, it’s a career counselling firm that provides career development guidance services for students. Three years into the business, Mindler has succeeded in establishing operations in five foreign countries.
"It’s no more about saturating in India before going global…if your product is good then why not," said Minder founder Prateek Bhargava, as quoted by Mint.
Aspiring Minds' successful overseas run
Another ed-tech company that has planted its flag in the overseas market is Aspiring Minds, headquartered in Bengaluru. The start-up has already ventured into countries like the United States and China.
Aspiring Minds co-founder Varun Aggarwal shared that they are planning to foray into other countries because they have a quality product that can be showcased globally.
"If you have a globally competitive product and a company with ambition, then it is wiser to go overseas. We believe what we were doing in India can be replicated anywhere in the world. We are now in China, the US, The Philippines and parts of Africa. When you talk about global – for an Indian company like us it means two key markets, China and the US. Other markets are small in comparison," he added.
Interestingly, Aspiring Minds' international operations account for 25-30 per cent of its overall revenue.
Most business owners treat their working capital limit like a safety net. It sits there, attached to their current account, ready to be drawn on whenever cash gets tight. And for routine operations, that arrangement works fine. But there are specific situations where a lump-sum loan disbursed quickly into your account is the smarter financial move. Knowing when to pick one over the other can save you real money and keep your business from getting stuck.
The Fundamental Difference People Overlook
A working capital limit, often structured as an overdraft or a revolving credit facility, gives you access to funds up to a pre-approved ceiling. You draw what you need, pay interest on what you use, and replenish it as receivables come in. It is designed for short-term, recurring needs like paying suppliers or covering payroll gaps.
A term loan disbursed quickly, on the other hand, drops a fixed amount into your account. You repay it in instalments over a set period, with a clear end date. The interest rate is typically fixed or at least predictable. These two products solve different problems, and treating them as interchangeable is where businesses get into trouble.
When Speed and Certainty Matter More Than Flexibility
Here’s a scenario that plays out constantly. A retailer gets an opportunity to buy inventory at a steep discount, but the supplier wants full payment within 48 hours. The retailer’s working capital limit is already partially drawn. The available balance might cover part of the order, but not all of it. Requesting a limit enhancement takes days, sometimes weeks, because the bank reassesses your financials.
An instant business loan solves this cleanly. You apply, get approval quickly, and the full amount lands in your account. You buy the inventory, sell it at full margin, and repay the loan over the next few months. The cost of interest on that loan is far less than the profit you would have lost by passing on the deal.
This pattern repeats across industries. A logistics company needs to repair a critical vehicle immediately. A restaurant has to replace kitchen equipment before the weekend rush. A manufacturer lands a large order but needs raw materials upfront. In each case, the need is urgent, specific, and finite. A revolving facility wasn’t built for these moments.
The Hidden Cost of Over-Relying on Working Capital Limits
There’s a psychological trap with revolving credit. Because it’s always available, business owners tend to lean on it for everything, including expenses that really should be financed separately. When you use your overdraft to fund a one-time capital purchase, you reduce the buffer available for daily operations. Then, when a genuine cash flow gap appears the following week, you’re scrambling.
Worse, many working capital limits come with annual renewal. If your financials have dipped, the bank can reduce your limit or decline renewal altogether. If you’ve been using the facility for purposes it wasn’t designed for, your utilisation patterns can actually work against you during the review.
A distinct term loan keeps your working capital limit clean. Your revolving facility handles day-to-day operations. Your loan handles the one-off expense. This separation makes your balance sheet easier to read and your banking relationship easier to manage.
Interest Rate Math That Favours Term Loans
Working capital limits often carry floating interest rates pegged to the bank’s benchmark. The rate adjusts, and over time, especially when monetary policy tightens, your cost of borrowing can creep up without you noticing because you’re only looking at the small daily interest debit.
A fixed-rate term loan gives you certainty. You know exactly what each instalment will be, which makes cash flow forecasting more accurate. For a specific expense with a known amount and a defined payback period, this predictability matters. You can map the repayment against the revenue that expense is expected to generate.
A working capital loan structured as a revolving facility makes sense when your borrowing needs fluctuate week to week. But when you know exactly how much you need and roughly how long it will take to pay back, a term product is almost always cheaper in total interest cost. The discipline of fixed repayments also prevents the slow balance creep that plagues overdraft users.
When Your Facility Is Maxed and Opportunity Knocks
Perhaps the most compelling case is the simplest one. Your existing limit is fully utilised. Business is good, money is coming in, but right now the account is stretched. A new opportunity appears. You can either let it pass or find additional funding fast.
Waiting for a limit increase is not a strategy when timing matters. Applying for a separate short-term loan, getting approval the same day or the next, and funding the opportunity directly is a concrete action with a measurable return. You are not adding long-term debt to your balance sheet. You are financing a specific transaction that pays for itself.
The smartest business owners don’t treat all credit as the same. They match the product to the need. Revolving facilities handle rhythm. Term loans handle moments. Getting that distinction right is one of the quieter advantages a well-run business holds over its competitors.
