Undervalued EdTech Gems Poised to Profit from the Homeschooling and Personalized Learning Surge

The pandemic irrevocably altered education, with homeschooling and personalized learning tools surging as parents and educators prioritize flexibility and tailored instruction. Now, a subset of undervalued EdTech companies is positioned to capitalize on this shift, backed by scalable platforms, robust cash flows, and strategic adaptive learning partnerships. This article explores how companies like Byju's, Udemy, and Edstellar are leveraging these trends—and why investors should take note.

The Drivers: Regulatory Tailwinds and Parental Spending Shifts

Post-pandemic, governments are accelerating investments in AI-driven education. The UK's £5.19 million (2024) injection into AI for schools exemplifies a global push to modernize curricula, reducing administrative burdens and enhancing accessibility. Meanwhile, parental spending on homeschooling resources has skyrocketed, with 74.6% of Udemy enrollments in 2025 targeting high-demand fields like tech and business—a clear sign of demand for skill-focused, self-paced learning.

Key Undervalued Plays: Scalable Platforms with Strong Cash Flows

1. Byju's (VALUATION: $16.5B)

• Why It's Undervalued: Despite serving 150M+ learners globally, its revenue multiple of 150% YoY growth (2025) lags sector peers, offering upside potential.
• Edge: Partnerships with 20,000+ teachers and adaptive AI tools like Squirrel AI (free access for low-income students) ensure inclusivity and scalability.

2. Udemy ($52M learners, ARR $371.7M)

• Why It's Undervalued: A 55% YoY revenue increase (2025) and a focus on affordability (e.g., Udemy for Business) suggest untapped enterprise potential.
• Edge: Corporate partnerships allow customization, aligning with the $4.39B adaptive learning market's 52.7% CAGR (2024–2025).

3. Edstellar (5,000+ certified trainers)

• Why It's Undervalued: 25% higher retention rates than e-learning peers and a competency skill matrix for workforce training hint at underappreciated profitability.
• Edge: Partnerships with enterprises for customized training libraries capitalize on the corporate upskilling boom.

4. Canva LMS (90,000+ institutions)

• Why It's Undervalued: A free tier + premium model drives adoption, yet its valuation remains low compared to peers.
• Edge: Integrates design tools with adaptive learning, appealing to hybrid classrooms.

The Regulatory and Market Catalysts

• AI Integration: Governments are mandating AI adoption in schools, with Squirrel AI's 2024 launch (free for 20% low-income users) setting a precedent for public-private partnerships.
• Corporate Training Demand: 80% of LinkedIn Learning users report skill improvements, signaling sustained B2B demand.

Investment Considerations: Risks and Opportunities

• Upside: Companies with cloud-based platforms (e.g., Canva LMS) and subscription models (Udemy, Coursera) offer recurring revenue.
• Downside: Post-pandemic funding cuts and competition in crowded niches like test prep (e.g., Chegg's 6.1x multiple) could pressure valuations.

Actionable Takeaways

• Buy: Byju's and Udemy for their adaptive AI tools and strong cash flows.
• Watch: Edstellar (enterprise training) and YQ (NASDAQ: $2.02 stock) for valuation re-rating opportunities.

Conclusion: A Sector Ripe for Value Hunters

The EdTech sector's post-pandemic recalibration has created undervalued gems. Companies like Byju's and Udemy combine scalability, adaptive learning partnerships, and cash flow resilience to outperform peers. With governments and parents driving demand, now is the time to act—before these undervalued players catch up to their potential.

Invest wisely, and let data guide your decisions.