Edukoya, a Nigerian edtech startup that set out to revolutionise K-12 online learning, has shut down. The company, which raised Africa’s largest pre-seed funding of $3.5 million in 2021, cited market readiness issues, limited access to devices, and challenging economic conditions as reasons for shutting down and returning investor capital.
The startup also faced a balancing act between attracting parents and paying tutors. Edukoya paid over ₦200,000 ($134) per month to tutors, a competitive wage aimed at maintaining quality. This was higher than the average ₦60,000 ($40) that underpaid teachers in peri-urban and rural schools earned, making Edukoya’s offer enticing. With this structure, it was clear Edukoya hired top tutors, passing the shared cost of paying them and maintaining their operations onto parents. Yet, the company’s inability to scale profitably suggests that it either did not have enough paying users or priced its service too high for mass adoption.
Founded in 2021, Edukoya entered an already competitive Nigerian edtech market but struggled to establish a strong foothold. Unlike established players like uLesson and Tuteria, which refined their pricing and targeted specific customer segments, Edukoya took a broad approach, offering a freemium model that failed to convert free users into paying customers. It also faced stiff competition not just from other edtech startups but from Nigeria’s deeply rooted offline tutoring system, where many parents and students still preferred in-person learning. Students were returning to classrooms post-pandemic, so the urgency for digital education diminished.
Edukoya also offered a freemium model which didn’t allow it to monetise instantly. Thus, without a product compelling enough to drive willingness among parents to pay, Edukoya faced monetisation challenges that ultimately stalled its growth. Yet, it’s not just Edukoya. Globally, K-12 edtechs have struggled; Byju’s, an Indian edtech unicorn which was valued $22 billion at its peak, went from hero to zero after scaling too fast and failing to prove the effectiveness of its product.
Meanwhile, skill-based edtech platforms like AltSchool Africa, Product Dive, and Utiva are thriving by selling directly to adults. These businesses tap into a market where learners control their own spending and see clear economic benefits from upskilling.
Edukoya’s shutdown poses a new question for Nigerian edtech operators: Is the market ready for broad K-12 edtech at scale, or are they better off targeting other customer verticals?
The opportunity seems to tilt toward providing a practical, career-driven education where students—not parents—make the purchasing decisions.
