The edtech sector, once notorious for its sky-high salaries, has seen a significant downturn in compensation packages as cost-cutting measures continue to reshape the industry landscape. According to industry experts and HR specialists, salary packages in the sector have plummeted by 30% to 80% compared to the peak levels of 2021 and early 2022.
Mayank Kumar, a physics teacher who relocated to Kota in 2022 for an attractive INR 32 lakh annual package, reflects on the drastic shift. “Salaries in edtech have undergone corrections and returned to normalized scales,” noted Prasadh MS, Workforce Research and Communications Specialist at Xpheno. “Startups, driven by earlier high valuations and bullish projections, had aggressively hired talent, but now face the reality of optimizing costs,” he added.
Aditya Narayan Mishra, CEO of CIEL HR, highlighted that startups are now prioritizing profitability and extending their runway through cost reductions. “Candidates’ salary expectations have also adjusted downwards, aligning with the industry’s current dynamics,” Mishra explained.
Anil Nagar, CEO of Adda247, emphasized the industry-wide correction, attributing it to funding constraints and a renewed focus on sustainable growth. “Variable pay components tied to performance are becoming integral to salary structures,” Nagar commented.
The correction comes after a period where edtech companies aggressively recruited talent, turning many educators into celebrities with unprecedented salary offers. As the sector reevaluates its financial strategies, the trend signals a shift towards stability and sustainable growth in the highly competitive edtech market.
Stay updated as the edtech sector navigates these new economic realities, reshaping expectations for both employers and talent alike.
