AI-driven edtech revival captures investor interest

The artificial intelligence (AI) wave is helping resurrect India's edtech sector from the shadows of Byju's collapse, renewing investor interest by blending learning with entertainment.

- Mansi Verma & Rwit Ghosh

Early- and growth-stage startups, including Seekho, SpeakX, and Arivihan, are using large language models to AI chatbots to offer engaging courses in multiple languages and subjects. And they are reaching audiences beyond India's top metros.

"We want to move beyond short videos and make learning interactive. While videos will remain the primary mode, we'll integrate contextual chatbots to make the journey dynamic," said Rohit Choudhary, founder and chief executive officer (CEO), Seekho. "Over time, this may evolve into a seamless AI-driven experience where users get personalized prompts in between videos."

As these startups drive user engagement and grow subscriptions, investors are taking note. That signals a potential revival in the edtech sector that is still reeling from the collapse of hyper-funded giants like Byju's.

But caution persists. According to data from Venture Intelligence, the number of deals plunged from 117 in 2021 to just 21 so far in 2025, while investment volumes have collapsed from $4.3 billion to $141 million over this period.

Seekho, an edutainment firm, has raised $28 million in a Series B funding round led by Bessemer Venture Partners. Elevation Capital, Goodwater Capital, and existing backer Lightspeed participated. With the fresh capital, the company plans to incorporate AI into its content offerings.