Edtech companies are engaging in predatory marketing practices, where they prey upon aspirational poor people who want to give their children a better education and supplement their education which they are not getting in a government school. The above statement, made by MP Karti Chidambram in the Lok Sabha on December 14, 2021, was one of the first public blemishes on India's blooming edtech industry and represented the case of thousands of customers who are being taken for a ride by edtech players. In the edtech sector, which was valued at $750 million in 2020, and was expected to climb to $4 billion by 2025 at a CAGR of 39.77 percent, leads are generated as soon as a customer interacts with their app. They are then aggressively pursued by the sales executive.
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