Startups in early and growth phase, including Seekho, Speakx and Arivihan, use large language models for AI-Chatbots to offer fascinating courses in multiple languages and topics. And they reach the audience beyond the best subways in India.
“We want to go beyond short videos and make learning interactive. Although videos remain the primary mode, we integrate contextual chatbots to make the journey dynamic”.. “Over time, this can evolve to a seamless AI-driven experience in which users get personalized instructions between videos.”
While these startups the involvement of users and subscriptions for growing, investors take note. This indicates a potential revival in the edtech sector that is still faltering of the collapse of giants such as Byju's. But caution remains. According to data from Venture Intelligence, deal activity has fallen from 117 in 2021 to only 21 to date in 2025, while the investment volumes have collapsed from $ 4.3 billion to $ 141 million during this period.
Seekho, an edutainment company, has collected $ 28 million in a series B finance round led by Bessemer Venture Partners. Elevation Capital, Goodwater Capital and existing Backer Lightspeed took part. With the new capital, the company plans to include AI in its content offer.
The company is also investigating $ 3-4 million deals to acquire startups at an early stage that are working on AI to learn, according to Choudhary.
Speakx, which teaches users English through a conversation AI Bot, tries to catch up with $ 15 million in a new round. Arivihan, which offers personalized courses in local languages, has just picked up $ 4.17 million in a seed round led by Prosus Ventures (the first Edtech bet in India after Byju's) and Accel. Sigiq, an edtech focused on personalized UPSC and GRE PREP, raised $ 9.5 million in seed financing led by the House Fund & GSV Ventures. Similarly, Stimuler, a Voice-first tutor for English as a second language, $ 3.75 million in pre-series, a financing from Lightspeed, SWC Global and others.
Seekho relies on existing large language models to personalize content for users, quickly implement engineering and refinement. “We are experimenting with ways to make the platform more social, but we want to balance it carefully,” said Choudhay. “Think of YouTube, which is completely social, versus Netflix, it is composed. We want to find a middle ground. Pilots are going on to explore this.”
The business community is not only driven by the desire of the Indians for education, but also for aspiration. Speakx and Seekho's target markets are not concentrated in urban areas, but they also have a large user base in Tier-II cities.
“By shifting the focus from institutions and educators to the individual student, AI makes content, pace and assessments for the needs of every student,” said Rahul Chowdri, partner at Stellaris Venture Partners. “This shift from standardized to personalized learning could be one of the most transforming effects of AI on education.”
The venture capital company at an early stage is Bullish about professional upskilling, self -help and language education.
Focus on startups at an early stage
. Had reported early signs of Edtech recovery last year, but most activities were concentrated with market leaders such as Eruditus and Physics Wallah, often with a secondary component with which early investors could leave. In 2025, that recovery in the late phase almost dried up and this year went to only two deals compared to nine in 2024.
Until now, the activity is concentrated in the early and growth phases in 2025. Startups at an early stage have already seen nine deals in the first eight months of going to last year's census, while growth-shaped virtils have registered nine deals compared to 10 in all 2024, according to data from Venture Intelligence.
The AI edge
However, founders are optimistic about AI that support both scale and cost efficiency.
“With AI, scale is much faster and cheaper. We already have users in almost every country, with paying subscribers in 180 countries,” Akshay Akash, co-founder of Stimuler, said .. “That is something impossible to achieve with a traditional teachers -based model, because you have to hire teachers in every country for every accent.”
Thanks to cheaper services, AKash sees companies such as his acquiring paying customers quickly. “For consumers it would be much more expensive to hire teachers, which costs around $ 3,000 a month, versus our $ 10 subscription per month.”
Companies such as Seekho and Speakx have played their business models to become first, because UPI has picked up Autopay. More people are willing to make bite -sized payments for things that they think will benefit them in the long term.
“The efficacy must be demonstrated by measurable improvements – in test scores, skills or flowing levels,” said Chowdri of Stellaris. “Retention will have to demonstrate his startups that are just as critical that their AI model can maintain long-term involvement while they are efficient.”
At the end of the day, these companies still have to prove that their companies are working on a scale, and a full revival can still be away for at least two years, according to the founder of Toivycap Ventures and Managing Partner Vikram Gupta. “It all comes down to the value they create. We are in a phase of growth where many of the products have still not been proven. The capital that you need at that stage is a higher risk capital.”
This is also reflected in dealer size, which was not restored after the collapse of Pandemic Highs. The average ticket sizes fell sharply from $ 37.2 million in 2021 to only $ 6.7 million in 2025, which underlines the caution for investors.
Legacy models to stay
Legacy players have also recognized the potential of such platforms. In July, . Reported that Gaurav Munjal, co-founder and CEO of Test-PREP Edtech company Unacademy, has looking for Airlearn, an AI-Talen Education Company, and to collect separate financing for this.
Likewise, IPO-related physicawallah small language models is tailored to resolve questions about physics, chemistry, mathematics and biology. The company is also planning to use AI-based voice to follow the lessons of some of its Star Teachers Pan-India.
Sri Chaitanya's Infinity Learn has also introduced an AI mentor, Aina for Jee and Neet Test Prep.
Yet Akash or Stimuler said, such models work better to supplement learning, such as language acquisition. “Older, old models will learn to dominate mainstream, such as test preparation and K – 12. That requires human contact points and teachers, and parents are willing to pay more for it.”
