Edtech Growth Picks Up as Smaller Towns Fuel Demand for English Lessons

Spoken English learning gains traction among edtech startups in smaller towns

Language learning — particularly spoken English — is emerging as a fast-growing segment for India’s edtech companies, as students and job seekers in tier-II, tier-III and tier-IV cities look to improve employability and access formal-sector jobs.

Startups such as WestBridge-backed SpeakX and Lightspeed-backed Stimuler are focused exclusively on English learning, while larger test-preparation platforms including Adda247 and Physics Wallah have expanded into the category, betting on rising demand and lower costs enabled by generative AI.

Industry executives estimate India’s language learning market at around $5 billion, with annual growth of 20–30% over the next few years. Globally, the market is valued at nearly $80 billion.

Rising demand from smaller cities

Limited English proficiency often becomes a barrier for candidates from smaller towns seeking entry-level corporate jobs, founders said.

Adda247 recently launched a standalone English-learning app aimed at preparing users for job interviews.

“While many candidates are capable, they often struggle at the first stage due to poor communication skills,” said Anil Nagar, founder of Adda247. “We are seeing strong traction even though we launched only a couple of weeks ago.”

Listed test-prep platform Physics Wallah also runs a dedicated English-speaking app offering conversation practice, grammar modules and vocabulary lessons. The app has crossed one million downloads.

AI lowers costs, boosts adoption

Executives say generative AI is transforming the economics of language learning by replacing costly human tutors with interactive, voice-based AI systems.

“People have picked up reading and writing skills, but conversational ability has largely remained unsolved,” said Arpit Mittal, founder and CEO of SpeakX. “With generative AI, that gap is finally being addressed.”

Mittal said a human tutor typically costs around Rs 500 per hour, while AI-led learning brings costs down to Rs 5–6 per hour, making it far more scalable.

SpeakX, which raised $16 million from WestBridge Capital last year, now has 200,000 monthly paying users and annual recurring revenue of $7–8 million.

Meanwhile, Stimuler, a voice-first AI tutor backed by Lightspeed, reported strong growth. Founder Akshay Akash said the company clocked Rs 3.5 crore in monthly revenue in January, compared with Rs 2.1 crore in December. For context, it had generated Rs 3.2 crore in revenue for all of 2024.

New entrants join the race

Consumer tech platform Eloelo has also entered the segment with its microlearning app Master, offering bite-sized English lessons. The app has nearly eight million active users and over 10 million downloads, according to Play Store data.

“Earlier, learners had to enrol in full-fledged offline courses that required significant time,” said Saurabh Pandey, founder of Eloelo. “Now they prefer short, bite-sized formats.”

Crowded market ahead

The growing opportunity is expected to draw more players, potentially leading to consolidation.

“Building engagement through a pure product play is tough. It’s not just about acquiring users but delivering value after acquisition,” Mittal said. “That’s where winners will emerge.”

Unacademy founder Gaurav Munjal is also pushing language learning through its global app Airlearn, positioned as a rival to Duolingo. The app offers more than 12 languages and scaled from $200,000 in annual recurring revenue at the start of 2025 to nearly $3 million by year-end, with over one million downloads.

However, Airlearn’s future remains uncertain after Unacademy’s acquisition talks with upGrad and Allen Career Institute collapsed over valuation differences.

Outlook

With English proficiency increasingly tied to employability and social mobility, edtech firms see spoken language learning — powered by low-cost AI tools — as the next major growth frontier beyond test preparation.