India's Former 'Poster Boy of Digital Education' Struggles to Stay Afloat
THE BIGGER THEY COME, the harder they fall. Business Today offers a cautionary tale about how the digital learning hype can backfire based on the struggles that Educomp, "one of the poster boys of digital education" in India, faces today. One of the early pioneers that brought interactive whiteboards and digital curriculum in Indian classrooms, Educomp soon faced competitors that offered similar services for lower prices.
In addition, it embarked on what would be a misguided (and costly) attempt to build its own fleet of K-12 schools. Today, the company's stock is trading at 75% below its IPO price, and it's facing a lawsuit from 25 private schools for providing poor service. It's no surprise that Educomp's fall has left a puddle of pessimism within the country about the promises of education technology--particularly among the investor community.