India is currently home to 580 million students and 900 million internet users, a market larger than the entire population of Europe. In 2026, India stands as the world’s second-largest e-learning market after the U.S.
And in today’s time, digital learning in India is no longer limited to metro cities.
With internet access reaching smaller cities and towns, online education is now a routine part of learning for students and young professionals aged 5–24. For global EdTech companies, India represents a $30 billion market opportunity. Yet for many, including Coursera with its millions of Indian learners, unlocking the market remains difficult because of challenges around local payments, currency clarity, and pricing expectations.
The Challenge in India Is Not Demand
Global EdTechs are not held back by interest. The real barrier is converting that interest into successful payments at scale.
International platforms typically struggle with three core friction points in India:
1. Complex Regulations
Cross-border payments are governed by the Reserve Bank of India (RBI) and Foreign Exchange Management Act (FEMA) rules. They dictate how subscriptions, recurring mandates, and settlements must work. For teams new to India, this adds uncertainty and delays.
2. Low Card Usage
Only 6–7% of Indians use credit cards, but most international checkouts are card-first. India is a Unified Payments Interface (UPI)-first market, where over 70% of online transactions happen through UPI. Card-heavy flows see significantly lower conversion.
3. Subscription Failures
India’s RBI e-mandate framework requires users to manually approve recurring payments. Global “auto-renew” systems often break here, leading to churn and failed renewals.
The outcome is predictable: high-intent learners drop off at payment, not due to lack of interest, but because the checkout feels unfamiliar, slow, or unreliable.
India is a mobile-first, UPI-first market. Global EdTechs that adapt to local payment habits unlock growth quickly, while those relying on traditional card-led playbooks continue to face friction.
What are the segments seeing high growth in India?
Indian learners are no longer casually exploring online education. They are investing in outcomes jobs, certifications, and competitive exams. In fact, 60–70% of India’s paid EdTech spending now comes from career-linked categories such as test prep, professional upskilling, and certification programs.
-
English and Communication Learning
In India, English functions less as a school subject and more as a pathway to economic mobility. Although it is one of the country’s official languages, only about 19% of Indians use it, and just 4% speak it confidently. This gap has created a strong demand for spoken-English training, especially among graduates and early professionals competing for private-sector or multinational roles. Learners in Tier 2 and Tier 3 cities are investing in communication skills to access better jobs, clear interviews, and pursue opportunities abroad.
-
Professional Upskilling and Certifications
Nearly one million positions are open in AI, data, and advanced tech roles, but only around half the required talent is available. Mid-career professionals are actively investing ₹1–3.5 lakh for programs with clear career outcomes, global recognition, or placement benefits, making this a high-ROI category for global EdTechs.
-
Music and Creative Learning
For families with children aged 5–15, particularly in urban and aspirational middle-class households, creative learning is linked to focus, confidence, and well-rounded growth. This shift has made arts education a structured and outcome-driven category.
-
Test Prep and Higher-Ed Supplements
More than 30 million students prepare for exams such as JEE, NEET, UPSC, and other competitive entrance tests each year. Even in price-sensitive households, spending on exam preparation is rarely reduced because it directly impacts a student’s academic and career trajectory. This makes test prep the strongest “willingness to pay” segment for global education brands.
Go-to-Market Playbook for Entering India
Succeeding in India means adapting to how Indian learners actually pay. UPI dominates daily transactions, credit card penetration stays low at 6–7%, and even small friction leads to instant drop-offs. This playbook helps global EdTechs launch with trust, speed, and higher conversions.
-
Price and Package for Indian Learners
Keep pricing simple and fully in INR. Indian users respond well to smaller commitments, so offer monthly plans, short modules, or micro-courses. Use a freemium layer to build credibility before upselling.
-
Make Payments Instant and Familiar
Build a UPI-first checkout. One-tap approval through apps like Google Pay or PhonePe, dynamic QR codes, and support for RuPay cards help more learners complete payments within seconds. Avoid long forms or foreign billing fields—they create anxiety and abandonment.
-
Design for Low Connectivity
Large parts of India still operate on inconsistent network speeds. Lightweight pages, fast-loading payment screens, and SMS/WhatsApp confirmations keep the flow smooth across all regions.
-
Handle Subscriptions the Right Way
Recurring payments in India require explicit authorization under RBI’s e-mandate rules. Use compliant local mandate flows to prevent renewal failures and keep predictable revenue intact.
-
Build Trust from Day One
Clear refund policies, visible UPI/RuPay logos, and transparent tax information make the experience feel familiar and safe—especially for Tier 2 and Tier 3 learners, who form the majority of India’s online education audience.
With these steps, global EdTechs can turn India’s complex market into a clear, scalable opportunity without losing learners at checkout.
How Razorpay Helps Global EdTechs Scale in India
-
Skip the hassle of setting up a local entity
With real-time onboarding, global EdTechs can start accepting payments in Indian Rupees (INR) within minutes without creating a local company or opening an Indian bank account. Razorpay supports all major Indian payment methods, including UPI, RuPay cards, netbanking, and Buy Now Pay Later options, so you can serve diverse learner habits from the start. Payments from Indian learners are collected locally, and the net revenue is settled directly into your international bank account in more than 135 currencies.
-
Automated Compliance & Reconciliation
Razorpay’s product comes built-in with all compliance requirements, so global teams don’t have to navigate India’s regulatory complexity. It automatically manages RBI and FEMA documentation, LRS filings, TDS and GST deductions, and generates Foreign Inward Remittance Certificates (FIRC). This removes the need for local legal support or manual reconciliation, allowing global finance teams to accept Indian revenue with full confidence.
-
Smart Gateway for Maximum Payment Success
Payment failures can be a challenge in India due to bank downtimes and network issues. Razorpay solves this with intelligent routing that monitors banks in real time, auto-redirects transactions through the fastest path, and delivers 99%+ uptime. So, high-intent learners can complete payments smoothly, and conversions stay strong.
-
Seamless Subscription & e-Mandate Support
Recurring payments often fail under India’s strict RBI e-mandate regulations. Razorpay provides compliant electronic mandate (e-mandate) solutions that guide users through one-time authentication, ensuring future renewals succeed automatically. This enables global EdTechs to build reliable recurring revenue streams without the high churn associated with non-compliant international gateways.
-
Localized Payments, Maximum Convenience
With ready-to-use UPI, RuPay, net-banking, and card options, Razorpay simplifies payment flows for Indian learners. One-click UPI payments, QR codes, and mobile-first checkout make transactions fast, familiar, and frictionless even for Tier 2 and Tier 3 users.
India Is Ready. The Right Setup Makes All the Difference.
Success in India isn’t about replicating a global playbook. It comes down to understanding how Indian learners discover, trust, and pay for education.
That’s where the right infrastructure partner matters.
Razorpay helps global EdTechs enter and scale in India without setting up a local entity handling payments, compliance, subscriptions, and settlements end-to-end.
