Why India’s Campus SaaS Startups Stall at ₹100 Cr — And How That Can Change
In Frame: Plaksha University
India’s Campus Management SaaS ecosystem is large: 40+ companies offering horizonal solutions, across the board. It serves a student base of 12+ Crores and 370K institutions. The number of students enrolling continues to grow and increasing number of international universities + private players continue to invest new money into the market. Yet despite this dynamism, the entire market is worth just ~$500M — smaller than one mid-tier U.S. EdTech IPO.
Most companies have not scaled beyond 100 Cr, and the median revenue scale lies between ₹20–30 Cr. There also have not been large M&A transactions in the space; barring Eupheus’ acquisition of ClassKlap.
Note: LoEstro has advised Entab and MyClassboard on Capital Raise and Strategy
The 100 Cr Ceiling and Why It Exists?
Pricing Gravity: Campus management software (SIS, ERP) sells for $4–15/student/year in India vs. $50–200 in the global markets such as U.S. and UAELimited Adoption: Only the top 20% of India’s institutions are known to use paid SaaS for campus management functions. And those who do use these software services, typically ask for a lot of customization and refuse to an annual subscription fee (and rather prefer implementation + AMC)Fragmented Market: The market has a large number of local players with limited scale (<10 cr). However, these players are able to retain potentially large accounts by offering significant discounts on market leader prices — leading to large fragmentation
While this sounds like bad news, several use cases in the market have shown positive light for operators to expand their horizons and scale beyond this invisible ceiling. Winners will build frugal, agile solutions that scale globally. This article explores that playbook.
What is Campus Management Software and Why Does the Market Seem Limited?
Campus management software integrates key modules for institutional efficiency, including:
Student & Admission ManagementAttendance & Timetable TrackingFee & Finance AutomationExam & Grading SystemsHR & Staff AdministrationParent-Teacher CommunicationTransport/Hostel/Library ManagementData Analytics & Compliance ReportingMobile App Access
Exhibit 1: India’s Addressable Market Math
*Source: UDISE+ 2024, AISHE 2022, LoEstro ResearchNumbers reveal a harsh truth: Even if every private institution in India paid $4/student/year — a best-case scenario — the entire campus SaaS market maxes out at $500M. This, by most venture capital math, is not a huge market.
India’s constraints are built in business model norms and economics:
Indian Institutions Deprioritize Paying for Invisible Infra:Schools prioritize “showcase” tech — smart classrooms, tablets, and LED screens — over backend SaaS. A principal might happily spend ₹20 lakhs on flashy hardware (politically visible to parents) but balk at ₹2 lakhs/year for an ERP that could save 500 staff hours annually. The result? Campus management software is treated as a compliance cost, not a strategic lever.Sales cycles drag to 18 months because decision-making rests with individual owners or trustees who micromanage every rupee. Unlike corporate procurement (which values ROI efficiency), school purchases often hinge on personal relationships, seasonal cash flows, and arbitrary price benchmarks (“XYZ school pays only ₹10/student!”). Vendors drown in endless pilots, custom demos, and last-minute negotiation over trivial amounts — a death knell for capital-efficient SaaS models.73% of Indian private schools allocate <1% of budgets to admin tech (Ken Research, 2023)
2. Product vs. Pricing Battlegrounds:
SIS/ERP drop: Race to the bottom on price. Basic school administration tools (attendance, fee collection, timetable management) have become commoditized. Many institutions still use 20-year-old ERPs that charge one-time fees of ₹50–100k ($600–1,200), making recurring SaaS pricing a hard sell. 82% of Indian private schools view SIS as a “check-the-box” purchase rather than a strategic investment (Source: IDC India 2023)Content/Assessments win: Assessments and test prep products charge 10–15x of Campus Management per student by delivering measurable outcomes (e.g., improved test scores, employability).
3. Lax Regulations Stifle EdTech Scale:
Weak Compliance Incentives: Unlike the U.S. (FERPA), EU (GDPR), or UAE (ADEK), India lacks stringent penalties for schools that ignore digital reporting. For example: Only 12% of state-board schools file mandatory UDISE+ reports digitally (Source: *UDISE+ 2023*).No accreditation downgrades exist for manual processes, unlike Middle Eastern universities that lose ratings without LMS adoption.Result: Schools see SaaS as “optional” rather than mandatory infrastructure.
4. The Customization Curse. Every institution demands bespoke tweaks, citing:
“Our state board is different”: Maharashtra’s SSC exam workflows ≠ CBSE ≠ ICSE.“Our principal wants it this way”: One school insists attendance be recorded via WhatsApp, another via biometrics.“Our old vendor did X”: Legacy processes (e.g., manual fee receipts) become sacred.
Yes, India’s campus SaaS market is trapped by lax regulations and customization chaos — but a new breed of operators is turning these barriers into scalable advantages.
How Global Outlook Can Help Change The Status Quo
To transcend the $500M ceiling, Indian EdTech must replicate the playbook of Freshworks or Zoho: build for the world from Day 1.
Global markets aren’t as dense, but can produce power results with a smaller customer base.Design for Global Standards from Day 1: Most Indian EdTech builds for CBSE/state boards first, then struggles to retrofit products for IB/AP/UK curricula. Build assessment tools that auto-conform to IB, Cambridge, and US Common Core standards.Price for Value, Not Cost: Global markets are extremely rewarding for real problem solving software. Pricing per student varies significantly, with some customers paying $50 per student per year for the right campus management software.Indian companies such as CamU have started focusing their GTM on global markets by setting up offices in markets such as the Middle East and SEA to scale their business outside (hence it is relatively more scaled than its competitors as well)Source: CamU’s Website, featuring customers in MENA and SEALeverage India as an R&D Lab, Not the End Market: Over-engineering for India’s fragmented market burns capital. Companies should use India to build the core product and have a solid global GTM to scale.Toddle’s Website, featuring a clutch of international schools
Toddle is a prime example of an Indian edtech company that has successfully built a global SaaS product by solving deep, specific problems in the international K-12 education space. Toddle’s platform stands out for its clean UI, intuitive UX, and vertical integration, becoming the single system of record for teaching and learning in a school. It solves for: Curriculum planning and collaboration, Portfolio management, Assessments and feedback, Family communication.
For all of this, Toddle is known to charge approximately $25 / per student per year
AI-Driven Customization: By leveraging generative UI tools, platforms can automatically reconfigure interfaces to align with local standards, such as adapting report cards for India’s 28 state boards or ensuring compliance with UAE’s ADEK regulations.Leading innovators are already proving this model’s potential. SuperSet, for example, uses AI to reduce customization timelines from weeks to minutes, while Toddle’s system auto-flags curriculum gaps in IB or CBSE frameworks. These AI-driven approaches not only cut costs by 40–60% but also accelerate adoption, with data showing schools implementing AI-optimized SaaS solutions onboard 2.3x faster.Intentional GTM: To truly scale, Indian EdTech SaaS players must move beyond token “export strategies” and commit to real global execution — establishing local offices in high-ARPU markets (UAE, SEA, Africa), hiring bilingual sales leaders with regional education ties, and forging channel partnerships with accreditors and government bodies. This means: Localized Sales Teams, Right Strategic Alliances + Channel Partners, and Pricing Play.
Why Now? Reasons for Optimism – Catalysts Ahead
New-Age Institutions: Ashoka, Plaksha, and Krea University wield digital-first DNA and budgets 5–10x legacy schools. This number is continuing to grow and will support robust market growth
2. Global Strategic Hunger: Increasing interest by Tech MNCs and Global SaaS players in Indian EdSaaS companies, to consolidate them in business operations and support a global GTM.
Source: Economic TimesPowerschool’s entry into IndiaAnthology’s increasing interest in the market
3. NEP’s Digital Push: As NEP’s implementation becomes more commonplace, use of SIS and ERP systems will become the norm
4. New Generation of Promoters: Education groups are now being taken over or started by the next generation of educationists, who want to make a mark and tech-first. Identification and targetting these customer groups will be critical for EdSaaS
5. Going Global Has Valuation Merits: Strategic acquirers price India Revenue and Global revenue differently. While an India only company might get priced at 3x–5x Revenue, Global Revenue company will be priced higher at 5x–8x.
Conclusion: India as the Launchpad, Not the Destination
India’s $500M Education SaaS market isn’t a cap — it’s a proof-of-concept lab. The winners emerging now will leverage India’s cost advantage and frugal R&D to deploy globally scalable solutions from Dubai to Jakarta.
For investors, the window is narrow: back SaaS players with capital efficiency, AI DNA, and early global logos, then exit to strategics with global access.
LoEstro Advisors is an investment banking firm specializing in sell-side fundraising and M&A advisory, along with a strong consulting arm. Recognized as the #1 financial advisor in education in India, we are the advisor of choice to India’s blue-chip education businesses.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1.2bn+ worth of combined deals closed across education, healthcare, consumer, and technology sectors.
