Beyond Buzzwords — Who Pays? The Future of EdTech Financing
Across education systems worldwide, the appetite for innovation is growing, but the funding to support it is increasingly tightening. In the second episode of the EdTech Hub Spotlight Series, “Who Pays? The Future of EdTech Financing,” EdTech Hub researcher Neema Jayasinghe speaks with two experts who bring both global experience and deep regional context: Rose Sagun, EdTech Specialist at the Asian Development Bank, and Sandeep Aneja, Managing Partner at Kaizenvest. Together, they unpack how shifting donor priorities, evolving private capital, and new financing models are reshaping who funds EdTech.
The Beyond Buzzwords spotlight series highlights insights from leaders, practitioners, and policymakers across Southeast Asia, offering a window into what’s changing and what it means for the future of learning. The conversations raise critical questions about inclusivity, innovation, and the risk that learners already facing barriers may fall further behind.
This episode offers a clear, accessible look at a complex landscape, helping audiences understand what’s at stake and what opportunities lie ahead for the region.
Watch the episode
Read below for a play-by-play summary of the core questions.
Question 1: How is the global funding crisis reshaping EdTech financing?
Rose began by explaining how the global education funding crisis is reshaping the entire landscape. As systems continue to manage COVID-19 recovery, digital learning gaps, and climate-related disruptions, international aid for education has declined from earlier levels. Donors are now redirecting money toward health, climate adaptation, and humanitarian needs. With traditional aid flows tightening, EdTech can no longer rely on past models of support. Instead, Rose emphasises the need for innovation, blended finance, and coordinated partnerships among governments, multilaterals, civil society, and private investors to ensure that EdTech remains both impactful and inclusive despite constrained resources.
Sandeep notes that private capital has undergone an equally dramatic shift. The hyper-growth period of 2020–2021 created inflated expectations, producing more than 40 EdTech unicorns and attracting a rush of investment. Now, only about a dozen remain, and funding has fallen nearly 90 percent. The focus has shifted to an investment environment that rewards real learning gains, solid evidence, and sustainable models. Mission-aligned investors and institutional buyers continue to participate, but generalist venture capital has largely withdrawn. According to Sandeep, this transition creates a healthier, impact-driven market, provided companies are willing to adapt.
Question 2: Where do financing models stumble most often?
Sandeep observes that the most common failure point in EdTech financing is not early-stage risk or long-term sustainability, but misalignment. Different actors often adopt varying definitions of success: one investor may seek deep learning gains, another rapid user growth; governments might push for systemic reform while entrepreneurs prioritise revenue. These differences lead to diverging metrics, expectations, and timelines. Sandeep argues that this mismatch causes more breakdowns than any market factor. Clear, shared intentions established at the outset are essential; without them, even high-quality products struggle to secure financing or achieve lasting impact.
Rose added that financing models also stumble during implementation, where well-designed strategies face real-world complexity. Large-scale education projects often span multiple ministries, procurement regulations, and political cycles, all of which can create friction. As conditions evolve, misalignment between initial plans and practical realities can quickly emerge. Rose highlights the value of smaller, staged pilots that allow governments and partners to learn what works before scaling. Such pilots limit risk, support adaptive decision-making, and strengthen future investment. Success, she notes, relies on early alignment, ongoing communication, and the flexibility to adjust as educational needs shift.
Question 3: How can financing better reach innovations for marginalised learners?
Rose points to a significant shift: inclusion is no longer treated as an afterthought in EdTech design or financing. Many initiatives now begin by addressing the needs of the most marginalised learners—those with disabilities, those in remote communities, or those navigating multilingual environments. She notes that solutions such as assistive technologies, universal design for learning, and adaptable interfaces often create insights that benefit all learners. Financing strategies can accelerate equitable impact by prioritising evidence, investing in equitable infrastructure, and grounding decisions in the diversity of real-world learning contexts.
Sandeep highlights how modern technology, particularly AI, makes meaningful inclusion more achievable. Traditional classrooms struggled to accommodate diverse learning needs due to limited time and resources. In contrast, digital tools can personalise instruction at scale, enabling a “classroom of one.” However, he cautions that inclusion only becomes real when capital is intentionally directed toward underserved populations rather than just commercially promising markets. Patient investors, evidence-driven scaling, and mission-focused entrepreneurs are essential. When financing rewards inclusive models rather than rapid expansion alone, EdTech can genuinely reduce gaps and prevent the digital divide from widening further.
Question 4: Where has financing successfully enabled EdTech to scale?
Sandeep identified Khan Academy as one of the most successful examples of global EdTech scaling, enabled by long-term, mission-aligned philanthropic capital. Its consistent focus on learning impact has allowed it to reach hundreds of millions of learners and provide valuable support to teachers. He also highlights Duolingo, which, through private capital, has demonstrated how accessible learning tools can achieve massive global engagement. Although their approaches differ, both cases show that aligned financing can unlock scale in ways that materially benefit learners and educators. The key, he suggests, is alignment between capital, mission, and pedagogy.
Rose explains that across the projects supported by the Asian Development Bank, digital components such as teacher professional development and enhanced data governance are gaining traction. These components, although not always flashy, serve as foundational systems that enable teachers to improve pedagogy and subject mastery. She stresses that financing has been crucial in supporting long-term programs, structured training, and cycles of iteration. Whether in remote schools or nationwide systems, the strongest results appear when technology is carefully aligned with educators’ needs and backed by sustained, thoughtful investment.
Question 5: What financing models are needed for the next five years?
Rose noted that Southeast Asia needs financing models that reinforce foundational learning while advancing digital transformation. She highlights results-based financing, where funds are released only when measurable goals are met, as an increasingly valuable tool for increasing accountability and focusing resources on interventions that work. Blended finance models, such as combining guarantees, grants, and affordable loans, can help governments adopt evidence-backed EdTech without facing prohibitive costs. Over the coming years, Rose argues, the region must embrace these innovative mechanisms to address persistent literacy and numeracy gaps while scaling digital learning responsibly and sustainably.
Sandeep emphasises that AI will fundamentally shape the future of learning and work, requiring financing approaches that ensure equitable access. He argues that education systems must prepare learners not merely for jobs, many of which may disappear, but for “livelihood readiness” in an AI-driven economy. Achieving this requires investment in digital public goods, teacher upskilling, and AI-powered learning tools that are accessible across income levels. Without intentional financing, AI could exacerbate existing inequalities. With coordinated public, private, and philanthropic capital, it can instead enhance personalisation, reduce teacher burden, and strengthen preparation for a rapidly evolving world.
Question 6: Final question: In one word, what should good EdTech financing feel like?
Rose offered the word ‘hopeful’. To her, good financing should signal possibility—an investment in learning, equity, and the belief that technology can genuinely improve outcomes for all learners.
Sandeep chose ‘empowering.’ He explains that financing should not be extractive, bureaucratic, or speculative. Instead, it should empower learners with opportunity, founders with the ability to build sustainably, and investors with both measurable impact and fair terms.
The future of EdTech financing in Southeast Asia hinges not on abundance, but on alignment, intentionality, and innovation. As Rose and Sandeep emphasise, funding must become more strategic, more inclusive, and more connected to real outcomes for learners and teachers. With the right models and partnerships, the region has an opportunity not just to digitise, but to truly transform education for the next generation.
We hope you’ll join us for upcoming episodes as we continue to unpack what works, what needs to evolve, and how we can build a more equitable and effective education system together.
The next episode will unpack EdTech Governance and Regulations. Stay tuned for the discussion in the coming weeks.
This episode draws on expertise from the following discussants:
- Rose Sagun is an Education Specialist at the Education Practice Team, Human and Social Development Sector Office, Asian Development Bank. Before joining ADB, she worked at the Education Commission in Washington, D.C., which was co-convened by the former Director-General of UNESCO and the UN Special Envoy for Global Education. She has worked on adaptive, personalised learning; digital learning/EdTech initiatives; and studying the interface between technology and human interaction, learning, and pedagogy. She served as the Co-Chair of Harvard Alumni for Education- San Francisco Bay Area chapter. She holds a Master’s degree in International Education Policy from Harvard University.
- Sandeep Aneja is the Founder and Managing Partner of Kaizenvest, an education focused fund management firm, headquartered in Singapore. He is responsible for overseeing the firm’s strategy, growing operations across regions, driving the company’s thought leadership and building the firm’s investor and entrepreneur networks across the globe. Sandeep sits on the boards of various education companies across the Philippines, Vietnam and India. Sandeep holds a Masters of Business Administration (MBA) from the Graduate School of Business at Stanford University.
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Statement of disclosure: This blog was developed with support from generative AI. A transcript of the recorded session was generated, and the content was organised into question-based segments, which were then provided to an AI tool to assist in the drafting and structuring of this piece.
Acknowledgements
Thank you to Verna Lalbeharie, Datuk Dr Habibah Abdul Rahim, Neema Jayasinghe, Sangay Thinley, Jazzlyne Gunawan, Sophie Longley, Jillian Makungu, and Laila Friese for the support with developing this first episode of the EdTech Hub Spotlight Series.
This publication has been produced by EdTech Hub as part of the ASEAN-UK Supporting the Advancement of Girls’ Education (ASEAN-UK SAGE) programme. ASEAN-UK SAGE is an ASEAN cooperation programme funded by UK International Development from the UK Government. The programme aims to enhance foundational learning opportunities for all by breaking down barriers that hinder the educational achievements of girls and marginalised learners. The programme is in partnership with the Southeast Asian Ministers of Education Office, the British Council, the Australian Council for Educational Research, and EdTech Hub.
This material has been funded by UK International Development from the UK Government; however, the views expressed do not necessarily reflect the UK Government’s official policies and equitable digital learning.
