By Anees Hussain & Nesil Staney
Study abroad platforms are facing a sharp slowdown as tighter immigration and student visa rules across key destinations squeeze their core business. With the US, UK, Canada, and Australia turning more restrictive, firms like AdmitKard, Leverage Edu, Leap Scholar, and upGrad are scrambling to diversify both destination and source markets to stay afloat.
Investor interest has also evaporated. Funding for the sector plunged 99% in 2024 to $9.15 million from $536 million in 2023, according to Tracxn. The drop mirrors a 15% fall in Indian students going abroad in 2024 (759,064) compared to 892,989 in 2023, as per ICEF Monitor.
The Big Four destinations have all recorded double-digit declines. Canada saw the steepest drop at 41%, followed by the UK at 28%, the US at 13%, and Australia at 12%. In contrast, alternative destinations are seeing strong upticks. New Zealand is up 354%, Germany 68%, Russia 59%, Ireland 49%, and France 11%.
For companies reliant on outbound Indian students, the contraction has hit hard. Loan provider GyanDhan’s applications were flat this year, which CEO Ankit Mehra called “not good, but better than Covid when it was zero”. The firm made Rs 24 crore revenue and Rs 1.4 crore profit in FY24 but is sacrificing profits in FY25 to tap new geographies. Germany is up nearly 100% and markets like France, Spain, Italy, and the Netherlands are posting 50–100% growth. Still, Mehra warned these smaller markets can’t yet replace US volumes.
Currency exchange and remittance firm Prithvi Exchange is also pivoting to newer geographies, as promoter Pavan Kumar Karvad cited growing uncertainty in the Big Four. Platforms like AdmitKard have seen a fivefold rise in inquiries for Germany over two years. The firm is now focused on expanding to Japan, Finland, and Sweden.
To hedge against India-centric risk, companies are expanding source markets. Leverage Edu now gets nearly 30% of its revenue from non-Indian students, with Nigeria emerging as its second-largest market after India, followed by Nepal. It has also expanded to Sri Lanka, Turkey, and Bangladesh, with Kenya and Ghana on the radar. Founder Akshay Chaturvedi said that during last year’s Canada-India diplomatic row, the firm kept sending students to Canadian universities, from Nigeria and Ghana, helping it grow as others lost share.
EduVelocity is following a similar path. Founder Vinu Warrier said students from the UAE are now a major revenue stream, and international students typically engage earlier and spend more. Leap Scholar, backed by Apis Partners and Owl Ventures, is now eyeing China and is in late-stage talks to acquire Prodigy Finance to aid its diversification.
Destination preferences are shifting fast. At upGrad Study Abroad, 27% of students initially bound for the US this fall have moved to other countries. Germany’s share of enrollment rose from 34% to 41%, France from 3% to 8%, and Finland from 2% to 5%, according to associate vice president Praneet Singh. About 50 of 180 students initially set to go to the US have opted for alternate destinations.
Some countries are moving to attract these displaced students. Singh noted about 10 French universities have publicly opened admissions to those affected by US restrictions. The UAE has introduced a 10-year “golden visa” for students with strong academic records from top-ranked institutions.
Still, entering new markets comes with costs. Platforms must now rely more on agents and invest in university tie-ups. In contrast, their earlier Big Four-focused marketing was largely inbound and organic.
Industry watchers expect consolidation. “If this continues another six to eight months, consolidation is inevitable,” Mehra said, pointing to companies that scaled up without sound unit economics.
Despite the current turbulence, executives expect eventual recovery. Mehra predicts Australia will stabilise first, potentially this year, Canada by early 2025, and the US by spring 2026.