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Overseas education firms join student exodus from American classrooms
The Trump administration's immigration regime is not only impacting students who are aspiring to pursue higher education in the US, but also businesses catering to this segment.
To lessen the impact, education startups are expanding operations in other regions such as the Middle East, Asia and Europe, and offering value-add services such as loans and other support to students, founders and experts said.
According to a November 2024 report by Frost & Sullivan, the number of Indian students pursuing education overseas was estimated to reach 2.5 million by 2030 – up from 770,000 in 2019 and an estimated 1.65 million in 2023 – with the US, UK, Australia and Canada being the top destinations.
However, under the Trump administration, the number of students going to the US is coming down.
According to a Bloomberg report, based on analysis of data from the US International Trade Administration, July 2025 saw a 28% year-on-year decline in foreign students entering the US, with a 46% decline in Indian students.
This has hurt overseas education startups, especially those catering to the US market such as AdmitKard and Leap.
Many startups have come up in the last few years to cater to students going abroad, which until early this year was growing at a CAGR of 7%.
Sudeep Laad, managing director of LEK Consulting's global education practice, said 50% of all Indian students studying abroad go to the top four countries, with the US and Canada accounting for about half of this. The other two top destinations are the UK and Australia.
Business under pressure
Rachit Agarwal, founder of AdmitKard, said 45% of students going to Canada and the US accounted for about 35% of the firm's revenue. This segment has taken a hit.
He said about 150,000 Indian students were going to the US, and this has now come down to 60,000 now. This decline is reflected in AdmitKard's business, with the approval rate seeing a significant decline. The company is facing cost pressure as it navigates the changing landscape.
“It is an absolute bloodbath,” Agarwal told ET.
Another founder, speaking on the condition of anonymity, said education loan startups focused on students moving to the US are also impacted as many students are unable to secure visas in time and many others are reconsidering the options.
Crizac, an overseas education company that was recently listed and acquired Raj Consulting last year to expand its US business, in an earnings call last month said there is uncertainty around the US, with thousands of students being impacted.
Gaurav Jain, partner at Kaizenvest, an education-focused PE fund, said some of the market players may see decline in revenues or go out of business, as they recalibrate by expanding geographies and offering value-added services.
AdmitKard's Agarwal said some of the startups, including them, have raised their concerns with the external affairs ministry, which has offered support to smoothen the process to expand in Europe, and open up more destinations across the Middle East.
Recalibration
AdmitKard is expanding to the UK, which will take 18-24 months, and adding more destinations keeping an eye on cost, which has come under pressure, Agarwal said.
Akshay Chaturvedi, founder of Leverage Edu, whose largest market is the UK, said geopolitics is a huge risk in the business.
His firm is also diversifying, expanding both the source and destination markets, which refers to students and universities they work with.
Currently India is the largest student market for LeverageEdu but it is seeing demand from Africa, Nepal, Dubai and in South Asian countries such as Malaysia and Vietnam. In terms of destinations, the company is expanding to Dubai, Canada and Australia as well, Chaturvedi said.
Crizac in its earnings call in August said there is a growing demand for new or alternative destinations, such as South Asian students going to Dubai or Chinese students going to Malaysia and Singapore.
Jain of Kaizenvest said some companies are looking to deepen relationships with their existing customers by offering value-added services such as loans.
Source: EconomicTimes
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