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Find out moreThe youngest and most successful
In honor of the publication of the top 100 list In 2021, HolonIQ held an online conference where five notable winners were announced. The youngest startup among these companies was Qwant, an online programming school from Kazakhstan, founded in April 2020, at the height of the first wave of the pandemic.
Qwant offers a unique year-long program based on Silicon Valley expert methods. The school's key feature is the absence of traditional teachers. Participants work on projects and complete quests independently, supporting each other and learning along the way. Qwant Director Beibarys Umirbayev noted at a conference that 5,000 people applied to study at the school since April 2020, but only 800 successfully passed the entrance exams. Due to the program's high complexity, only 120 participants were able to complete the program. This learning model enables students to develop critical thinking and practical skills, making them competitive in the job market.
Currently, the school has 280 students from Kazakhstan and 250 students from Tajikistan, Uzbekistan, and other CIS countries. The course fee is 45,000 tenge (7,616 rubles) per month. Many students live in small towns and villages, making it difficult for them to pay for the courses. In this regard, Qwant offers grants to the most talented students, as Umirbayev noted in an interview with Skillbox Media. The secret to the school's success, according to Umirbayev, is that it offers the opportunity to quickly obtain an IT education using high-quality American methods. Graduates can find employment in in-demand fields and earn twice the average salary in Kazakhstan. During the pandemic, this service has become especially relevant, as many people have faced reduced income or job losses in their professions. Studying at the school not only helps develop skills but also adapt to the modern demands of the labor market. Umirbayev announced Qwant's plans to develop a recently created platform that connects employers with potential interns. The platform provides companies with a full set of digital tools for training interns and their subsequent onboarding as employees. Currently, 20 universities have joined the platform, including two from Russia, Umirbaev noted. Adult work and professional skills training services, covering not only programming but also other areas, account for a significant share of the EdTech market in Russia and the CIS. According to HolonIQ research, this niche accounts for over 22% of the total market. This confirms the growing interest in training and skills development in adults, which reflects modern trends in education and the needs of the labor market.
Other niches are growing, although not as rapidly. According to research, STEAM education, which encompasses science, technology, engineering, art, and mathematics, accounts for 15% of the market. Management education programs account for 14%, while foreign language learning and test preparation account for 12% each. Advanced technology training accounts for 7% of the market.
The EdTech market in Russia and the CIS still has niches unoccupied by large companies, opening up opportunities for new startups. Alexey Solovyov, founder of the investment company A.Partners, noted at the conference that the growing number of strategic investors in EdTech is facilitating the emergence of young companies. Previously, only a few large players, such as Mail.ru and Yandex, invested in EdTech startups. Today, new projects are attracting the attention of other investors, who themselves were recently startups and have experienced rapid growth. This creates favorable conditions for innovation and the development of educational technologies, making the EdTech market attractive for investment and new ideas.
Online for Schoolchildren
Three young projects focused on educating school-age children were presented at the conference. According to a recent study by Smart Ranking, this segment of the EdTech market is demonstrating one of the highest growth rates. In the first quarter of 2021, companies operating in this field collectively earned over 3.5 billion rubles. Teaching children using modern technologies is becoming increasingly popular, confirming the interest of investors and educational institutions in such innovative solutions.
At the conference, Maria Spis noted that the significant growth of the online school education segment was driven by schools' increased interest in online programs. In 2020, when schoolchildren switched to distance learning, many mandatory and optional courses were also transferred to an online format. This change opened up new opportunities for educational institutions and students, allowing them to adapt to modern educational requirements. Online education has become not only an alternative to traditional learning but also an important tool in training future specialists.
One of the leading players in the children's educational services market, Skysmart, launched in 2019 by Skyeng, made it into the top 100 ranking compiled by HolonIQ. Skysmart offers innovative solutions for children's education, combining modern technology and pedagogical methods. The project aims to develop the skills necessary for a successful future and actively attracts the attention of parents and educational institutions.
According to the rating of the largest companies in the online education market Smart Ranking, In the second quarter of 2021, Skysmart's revenue reached 725 million rubles, an increase of 425 million rubles compared to the second quarter of 2020, when revenue was 300 million rubles. Thus, the project more than doubled its revenue over the year. As a Skyeng representative reported in an interview with Skillbox Media, revenue from Skysmart accounts for 50% of Skyeng's total revenue.
At the conference, Anna Anashchenko, Head of Skysmart Class, emphasized that the project's ecosystem is focused on creating a comprehensive educational cycle for families. This allows children to be educated from an early age until they choose their career path. This approach promotes the harmonious development of the skills and knowledge necessary for a successful life in the modern world.
Skysmart offers a variety of educational services, including an online school for children and teenagers, where classes are held on school subjects and career guidance. The program also includes the Skysmart Pro School of Future Professions, which focuses on preparing students for in-demand professions. The Skysmart Class platform has been developed for parents, students, and teachers, simplifying the creation and automated checking of homework assignments, as well as conducting tests, competitions, and olympiads with attractive prizes for students. Skysmart's online school currently enrolls over 50,000 students aged 4 to 18. The platform actively collaborates with 3,400 qualified teachers, bringing the total number of registered teachers to 220,000. These teachers use the platform to assign homework to their students, which promotes more effective learning and interaction. Skysmart offers a variety of educational programs tailored to the needs of children and adolescents, making learning accessible and convenient.
Two educational projects that made it into the top 100 of the HolonIQ list were presented at the conference. These projects focus on additional education and development of children, offering innovative approaches and methods to improve the learning process.
Online platform Founded in 2018 and specializing in educational games for children aged 6 to 13, Umnazia adapted its educational programs during the pandemic. Galina Kan, co-founder of the platform, noted that the company was able to significantly reduce the development and launch time for new products, allowing it to respond more quickly to user needs and changing conditions. This has made Umnazia more competitive in the online education sector. The company actively researches consumer demand and develops programs tailored to the specific needs of its audience within a short period of time, from 3 to 6 months. According to the SPARK-Interfax system, by the end of 2020, Umnazia's revenue reached 14.4 million rubles. The platform currently serves 15,000 Russian-speaking children from 94 countries, demonstrating its growing popularity and importance in the educational services market. LogicLike.com, a platform focused on developing logical thinking and mathematical intelligence in children aged 5-12, has successfully overcome the challenges of the pandemic. Launched in 2013 as an offline school in Minsk, the project has been actively developing an online format since 2015, leading to a significant increase in its audience. Since 2020, LogicLike.com has attracted approximately 2 million monthly users from the CIS and beyond, including a significant number from the United States. Co-founder Matvey Olevinsky notes that the platform has demonstrated double-digit growth every year. Currently, only 25% of revenue comes from the offline school, while the share of online services is constantly increasing. LogicLike.com continues to develop innovative teaching methods, making it one of the leading platforms in the field of educational technology for children.
Demand for Foreign Languages
At the HolonIQ conference, the top 100 list was presented, in which the FunEasyLearn mobile app, developed by the Moldovan company Felsoft Technologies, took fifth place. FunEasyLearn offers users effective language learning methods through interactive lessons and engaging materials, making it an excellent tool for anyone looking to improve their language skills.
According to HolonIQ research, the market for online language learning programs in Russia and the CIS continues to grow rapidly. This is due to both long-established platforms such as Skyeng and EnglishDom, and new players such as Basenji Apps and AllRight. The growth of this segment indicates a high demand for high-quality language learning and the adaptation of technology to modern educational requirements.
The FunEasyLearn app was updated to its current state in 2019, said Alexandrina Plugari, the company's Director of Products. Currently, it enables speakers of 62 languages, covering almost the entire world population, to learn 34 different languages in an interactive, game-like format. According to Plugari, the app includes 30 game modules, 11,000 illustrations, and 300,000 audio recordings, making the learning process engaging and effective. This app is suitable for both beginners and those looking to improve their language skills. FunEasyLearn offers the unique ability to download and use the app without an internet connection. This advantage allows the company to successfully market its product even in regions with limited internet coverage. The app currently has more than 2.5 million individual users in over 190 countries, 10% of which are in Russia, Plugari explained. She noted that during the pandemic, there was a sharp increase in interest in the app, which contributed to the company's revenue increasing by 30% in 2021 compared to 2020.
FunEasyLearn's growing revenue has opened up opportunities to enter the B2B market. The company already has individual corporate clients. This year, FunEasyLearn is actively negotiating with a large number of schools in Switzerland, Sweden, and the Netherlands. In 2022, the company also plans to expand its operations in Russia, aiming to attract corporate clients, as noted by Plugari.
Market Opportunities
The EdTech market is becoming increasingly competitive, and investors are eagerly awaiting the emergence of new startups. This became clear from a statement by investor Alexey Solovyov at a recent conference. Interest in educational technologies continues to grow, which creates opportunities for innovative solutions and attracting funding.
According to market participants, such as Anna Chashchina, Marketing Director of the EdMarket incubator, which is part of the Netology Group, the education market is expected to grow significantly in the coming years. A 1.8- to 2-fold increase in volume is predicted annually. This demonstrates growing interest in educational services and the need for new approaches to learning.
The GetCourse platform, which hosts distance learning courses from numerous online schools, confirms revenue growth in the online education sector. In 2020, the combined revenue of all schools on this platform reached 46.5 billion rubles. By mid-September 2021, this figure had increased to more than 60 billion rubles, and by the end of 2021, it is expected to exceed 80 billion rubles. These data demonstrate the dynamic development of online education, making it an attractive area for investment and training.
According to Chashchina, the rapid market growth is due to the introduction of new online courses, price increases for educational products, and the expansion of installment options from 12 to 24 months. This also allows for the company to reach a wider target audience. Additionally, subscription models and club formats are becoming increasingly popular, fueling the development of online educational projects.
Alexey Solovyov warns that there are factors that could slow the growth of the EdTech market and reduce the number of new startups. He notes that the online education market in Russia is currently weakly regulated by government agencies, but the government can impose strict controls on education for both children and adults at any time. A similar situation was recently observed in China, where authorities introduced strict regulations regarding extracurricular activities for schoolchildren. This highlights the importance of monitoring legislative changes and adapting startup business models to potential innovations to remain competitive in the rapidly evolving EdTech market.
In some EdTech market segments, such as digital education, there is an excess of supply compared to demand, Solovyov notes. Young startups just starting out need to develop innovative learning formats to stand out from the competition. This will create higher barriers to entry for new projects. At the initial stage of funding, an EdTech startup already needs $200,000-$300,000 for active growth, says Solovyov.
