Significant trends in learning approaches and tools have been driven forth by the epidemic and its effects. The majority of the education industry’s sectors have now been provided with ideal prospects to digitise. A few years ago, the idea of online teaching or learning was novel, and its usage dominated discussions and conversations without being properly adopted or utilised as an educational tool.
The MENA region had never spent more than $10 million on the edtech sector before to 2018, Where the Lamsa platform in the UAE was able to raise close to $2 million at this time during its initial fundraising round.
Investors have since recognised the potential of the MENA region’s EdTech environment, they invested in initiatives that are revolutionising the market while also localising the learning experience, such as Lebanon’s Kamkalima, an Arabic educational platform. Since that time, funding in the EdTech sector has grown steadily at a CAGR of 54% between 2018 and 2021.
The pandemic has encouraged further boom in the edtech industry, with investment hitting $50 million in 2021, an increase of 103% from the year before.
The first aspect that has helped EdTech expand, is the increase in the quantity of agreements that have been completed in recent years. In 2017, there were roughly 14 deals worth $ 4 million executed, and this number jumped to $ 28 million through 35 deals that grabbed early-stage investors’ attention of the EdTech investment growth.
Another indication of the MENA EdTech market’s potential, is the new emphasis on the region by Classera, a U.S.-based EdTech business, which just closed a $40 million funding round.
The EdTech sector’s growth has been considerably enhanced by the emergence of venture capital firms that have attracted significant investment, including 500 Global, EdVentures, Flat6Labs, and Oasis500. For instance, EdVentures was founded specifically to invest in EdTech startups in the MENA region.
Also Read: Top 10 most funded EdTech startups in the MENA region
The MENA region’s large markets have contributed to the rise of the edtech industry, but smaller markets have also benefited greatly from it. Bahrain accounted for 8% of the investments this year, while Jordan received 23% of the funding. Furthermore, Jordan raised the largest amount of investment in 2021, accounting for 56% of the overall funding. While Jordan’s Abwaab has acquired the largest funding round for the sector to date, sizable sums have also been invested in firms in the UAE, KSA, and Tunisia.
The question of whether online learning will still be necessary after the pandemic as the globe gradually settles back into its routines arises? A yearly comparison of 2021 and 2022 reveals that financing in the industry has increased over the same period the previous year, supporting the notion that online learning shows bright future potential for sophisticated digital learning environments.
Last Updated on November 12, 2022 by Safiya K
