Phygital EdTech: The New Trend in Town
How EdTech development and investment has evolved post pandemic
The seismic shift towards digital learning and an upending of ‘how’ education takes place, predicted by many through the pandemic, now seems like a distant memory. Despite millions of students needing to make up for lost time, the adopted solutions have predominately been traditional methods - personal tutoring and additional homework.
Rather than a profound shift in the EdTech sector, a more subtle one is underway and it’s named "Phygital." The combination of "physical" and "digital" it's a hybrid model that aims to provide a seamless experience for students across physical and digital learning environments.
In the context of EdTech, a phygital model would be a learning platform that uses both in-person (physical) and online (digital) methods to deliver educational content. For instance, students might attend a physical classroom or tutoring session, but they would also use a digital platform to access learning materials, submit assignments, participate in discussions, or even attend virtual classes or tutorials.
The goal of a phygital approach is to create a more engaging, flexible, and comprehensive learning experience that leverages the advantages of both in-person and online education.
Hold up, this sounds exactly like a MOOC?
A Massive Open Online Course (MOOC) and a phygital model represent two distinct approaches to delivering education, although they sometimes overlap.
MOOCs are usually full online courses, accessible to anyone, anywhere, with internet access. They offer an asynchronous learning environment, meaning students can learn at their own pace. The "massive" component refers to the potential for MOOCs to enroll large numbers of students — in some cases, tens or even hundreds of thousands — which is made possible by their online format. Popular MOOC platforms include Coursera, edX, and Udacity.
Phygital models, on the other hand, refer to educational experiences that blend the physical and digital worlds. This could involve a variety of configurations, such as a classroom-based course that uses digital technologies to enhance learning, or an online course that includes some face-to-face, in-person components.
The main difference is that MOOCs are wholly online and generally do not involve any face-to-face or physical interactions. Phygital models are specifically designed to incorporate both physical and digital elements.
Now, just to make things a little tricky, the two aren't mutually exclusive — a MOOC could be part of a phygital learning experience if, for example, it's used as a component in a blended learning curriculum that also includes in-person instruction. Conversely, phygital learning isn't limited to MOOCs or any other particular type of educational offering; it represents a broader approach to integrating technology with traditional education. But for now let’s put those use cases to aside because there’s a second question to answer…
Isn’t this just blended learning? It sounds a lot like it’s blended learning!
"Blended learning" and "phygital" models share similarities in that they both involve a mix of online (digital) and offline (physical) elements. However, they differ in emphasis and purpose:
Blended Learning: The typical goal is to enhance the learning experience by leveraging the strengths of both in-person and online instruction – for instance, classroom interaction and personalisation from the teacher, supplemented by the flexibility and diverse resources of online learning.
Phygital Model: While also combining physical and digital elements, the concept of a "phygital" model originated in the retail industry and is broader in scope. It's about creating an integrated, seamless experience that blends the physical and digital worlds at all touchpoints, not just in terms of learning or instructional methods. This can include a wide range of interactions, from the learning experience itself to customer service (in the case of retail) or student services (in the case of education).
While both blended learning and phygital models involve a mix of physical and digital elements, blended learning is used to augment traditional face-to-face learning. The teacher remains the key curated of learning, augment classroom sessions with pre or post homework activities. The phygital concept encompasses a wider range of experiences and interactions between the learning material and the learner. The teacher is not the curator of learning but a pillar in the process.
Who’s in the ‘Phygital’ Space?
BYJU's: The Indian EdTech giant started with online learning modules but has since expanded into offering physical study materials, including books and workbooks. They've also acquired physical tutoring centers like Aakash Educational Services, bringing a hybrid approach to their services.
VIPKid: This Chinese online education platform connects students with English language tutors from around the world. It uses an online platform for virtual classrooms, but the human interaction gives it a phygital aspect.
Khan Academy: Originally a digital-only platform, Khan Academy has also moved into phygital territory by offering physical books and partnering with US school districts for in-person instruction, supplementing their online resources.
New Oriental Education & Technology Group: Another Chinese company started as a physical network of tutoring centers. However, it has since developed a substantial online presence, with e-learning platforms, online courses, and digital resources for students.
Chegg: Making recent news due to the adverse impact generative AI had on it’s share price, Chegg offers digital study aids, online tutoring, and e-textbook rentals, alongside physical textbooks for rent or purchase, bringing physical and digital elements together.
An Area of Interest for Investors
Investment trends in the phygital EdTech sector reflect the broader shifts occurring in the market. Rather than a major upheaval of the traditional physical based education model into digital platforms, the need and value of in-person learning has greatly increased. The result is investors are seeking opportunities that leverage the strengths of both physical and digital learning experiences. Here’s 5 areas that are growing:
Hybrid Learning Platforms: Investors are showing interest in platforms that offer a blend of in-person and online learning experiences, which can provide the benefits of both traditional and digital education. These platforms have the potential to offer more flexible and personalised learning experiences, which can be particularly valuable in the current, changing educational landscape.
Investing in Technology Integration: There's a growing interest in companies that can integrate advanced technology (like AI, AR/VR, and adaptive learning algorithms) into both their online and offline experiences, enhancing the learning process, making it more interactive, and catering to the individual needs of learners.
Cross-sector Convergence: The convergence of education with other sectors (like technology, entertainment, and publishing) is becoming a focus for investment. For instance, partnerships between EdTech companies and traditional education providers or content publishers can offer phygital experiences that combine high-quality educational content with innovative delivery methods.
Global Expansion: Companies that can scale and adapt their phygital model to different markets and cultures are attractive investment prospects. The ability to provide education services across various regions and languages is an important growth driver.
Lifelong Learning and Upskilling: As career lifecycles change and the demand for new skills grows, there is increased interest in investing in platforms that support continuous learning, professional development, and reskilling/upskilling. These platforms often adopt a phygital approach to cater to various learning preferences and situations.
Thanks for reading and I hope you found it useful. Before you go, do take part in the investment trend poll below.
As always, if you have any questions, send them in. Always nice to hear from EdTech companies!
Best
Jay
Are you looking to raise investment for your EdTech? |