Written By: Gouri Ghosh  

In the AI era, technology is changing every year. New jobs require new skills. But many schools are still teaching with a focus only on exams and grades. That’s why parents are looking for more than just a good grade card. They are looking for coding, robotics, AI fundamentals, communication skills, and practical learning for their kids.

So if you are going to start an education business in 2026, you might already be aware of this shift. Parents are not just asking for grades. They are asking, “Will these skills help my kid achieve a good career in their life?” In the present time skills are more important than grades.

So the education business is changing rapidly. The traditional education business is still operating, but skill-based education businesses are expanding rapidly. In this blog, you will learn why this is happening and why many investors are showing interest in investing in an ed-tech franchise opportunity in India.  

The  Model Of Traditional Coaching 

The traditional coaching centres have developed as a profitable business model over the years. Here’s why this model was so successful:  

• In the past, people focused more on Engineering, medical, and government exams.
• Demand for traditional coaching  was high due to academic competition 
• Parents were ready to spend amounts for improving their child’s ranks
• It had a strong local reputation due to the power of word-of-mouth 
• Predictable and exam-oriented curriculum every year
• Result-oriented marketing 

Example: Brands such as Aakash Institute and Allen Career Institute were common names across the country due to their consistent performance. This model was one of the most profitable education franchises in the country for a long period of time.

What’s Changing in Traditional Coaching in 2026

Now the scenario is changing. If you are an investor, you should be more focused on:

• The markets in urban and semi-urban areas which are already saturated
• There are too many coaching centres competing for the same category of students
• If the main faculty leaves, the student enrollment may decline
• The revenue stream is seasonal and exam-oriented
• There is competition from large national brands
• Students are fed up with the managing and pressurized system

So this indicates that as a franchise investor, you will get :  

• More operational stress
• Lots of competition
• Unpredictable returns

The system still functions, but it will not continue for long run.

The Rise of Skill-Based EdTech Franchises opportunities

Skill-based EdTech franchises help students with their future, rather than just preparing them for exams. This franchises typically focus on:

• Coding and app development
• Robotics and AI
• Digital marketing
• Entrepreneurship
• Design thinking
• Communication and soft skills

Most of these skill-based EdTech franchises operate on a hybrid model. They provide offline classes to students, along with online platforms for practice, assignments, and tracking progress.

Why Parents Are Choosing Skills Over Scores

Parents are changing their mindset because:

• In the future, jobs require adaptability, creativity, and technology skills.
• Platforms such as Coursera and Udemy have made skill-based certification an accepted practice.
• The National Education Policy (NEP) of India has encouraged experiential and skill-based learning in schools.
• Today, parents consider skill-based education an investment in their child’s future, rather than just another tuition class.

Cost & Revenue Comparison Table 

Why Skill-Based EdTech Franchises Are a Good Choice for Investors in 2026?

Skill-based EdTech franchises are winning because they are aligned with what parents are looking for in the current era and what children need for the future. Here’s why skill-based franchises are doing so well.

1. Recurring Revenue Model

Students' enrollment programs progress from basic to advanced. They learn for months or even years, not just for a short crash course.

• Classes are held throughout the year.

• Students progress to the next level after completing one level.

This ensures a steady stream of income. You are not relying solely on one admission season to keep your business running.

2. Less Faculty Dependence

Coaching institutes usually depend on one or two popular faculty members. If they quit, admissions may decline.

Skill-based franchises minimize this problem.

• The franchise name itself is a ready-made curriculum.

• The teaching process is well-defined and standardized.

• LMS systems are used for teaching and monitoring students.

You are building your business around systems, not based on people.

3. Broader Target Group

Skill-based centers attract people of different age groups.

• School-going children enroll to develop coding and robotics skills from a young age.

• College-going students enroll to get hands-on skills.

• Working professionals enroll to enhance their skill sets.

You earn commissions from multiple segments rather than depending on a single exam segment.

4. Greater Parent Retention

Parents want to  progress, not mere claims.

• Students develop projects such as apps, websites, or robots.

• Students implement what they have learned.

When parents witness tangible progress, they stick to the program.

5. Increase of  Technology

Technology helps you to scale your business without compromising on quality.

• You can update learning content from one central platform to another.

 • You can handle test results, reports, and analytics from any place.

 • You can track performance metrics from different locations.

You can easily expand to multiple centers and have everything under your control. This is why many investors feel that this is one of the best investments  in India for scaling.

6. Premium Pricing Power

You can market skill learning as a precursor to future careers.

• Parents understand the long-term benefit of skill based programs.

 • They compare results, not just prices.

This helps you maintain a healthy pricing structure compared to other learning options that are exam-centric.

7. Government  Policy  & Support

Now  education policies have shifted to skills based learning.

• The National Education Policy (NEP) 2020 promotes coding and vocational education.

 • Schools are slowly incorporating experiential subjects.

When government policies support skill development, the demand is automatically  increased. That's why the edtech opportunity in 2026 is so strong.

8. More Flexibility

In edtech franchise you can offer  hybrid flexible learning opportunities 

• Students can learn through offline classes, online classes, or a combination of both.

• You can enter new markets without expenses with high infrastructure .

Companies such as Byju's have demonstrated the scalability of blended learning. Hybrid flexibility helps franchise owners grow their businesses.When you are looking for a low cost education franchise in India that can scale then you can choose skill-based models that offer structural advantages.

What are the Market Trends of education franchises in India 2026?

The education industry is transferring  from the traditional classroom method to technology-assisted learning. Today, parents and students demand more than just blackboard education.

The following are the key trends that are currently shaping the market:  

•  Hybrid learning model: Today, the coaching centers are using a combination of offline classes and online platforms, tests, and tracking systems.
•  Combine model adoption: The hybrid model of learning became acceptable and common in India due to companies like Byju's.
• Tier 2 and Tier 3 expansion: The demand for coding, robotics, and skill development courses is increasing in Tier 2 and Tier 3 cities.
• More interest in AI and future skills: Parents have realized that the future of employment depends on technology and practical exposure.
•  Increasing demand for online models: Many parents are actively looking for online education .

So the skill-based EdTech industry is growing at a faster rate than the traditional exam preparation industry.

What indicates to the investors:

• Technology is growing faster and it is easy to  expand.

• You can reach more students through one central location.

• You can enter a high demand and sustainable market .

So it is clear that the future is ready for technology-enabled and skill-based education in India.

Table for Market Growth Of education franchise in India

Risks in Skill-Based EdTech Franchise opportunities

The skill-based EdTech franchise model has larger growth opportunities, but it also has some risks . 

There are the risks of this category :

• High competition: New brands are entering the edtech category in large numbers. If the brand does not have a distinct identity, it will be difficult to get admissions.
• Quality of trainers: Even if the content is planned in a systematic way, the trainers may not be up to the mark.
•  Making unrealistic promises: Brands make tall promises about career success. If the results are not as expected, the trust of parents will be shaken.
•  Increased pressure from parents: Parents consider skill development as a career investment. They want to see results and track the progress.
• Readiness of the market in smaller cities: In some places, parents may still give more importance to exam preparation than skill development.

Case Study Of Aakash Institute’s Hybrid Transformation

Now we will talk about a case study for  your better understanding. From different research, the biggest and most established coaching brands in India understand that the traditional classroom teaching model is not valid for the future. so Aakash Institute has started investing  in its digital expansion through Aakash Digital.

The company has allocated around ₹250-500 crores for enhancing its digital offerings and incorporating AI-enabled learning solutions. This is more than just expanding its online offerings. 

Key Developments

• Digital presently contributes less than 10% of the overall revenue.

• The plan is to raise it to 25-30% in the next 2-3 years.

• The cost of online courses is 10-20% lower than offline classes.

• Phygital classrooms offer a combination of offline teaching and digital analytics and performance measurement.

Read : Most Popular Training & Coaching Franchises

Education & EdTech franchise Guides

Conclusion

In 2026, parents will not only focus on grades. They are actively searching for programs that develop actual skills and help their children prepare for the future. 

Skill-based franchises are lucrative, leverage technology for scalability, and provide actual learning outcomes. They directly address what families need today. For an investor, the opportunity is simple: create a business around future skills and hybrid learning, and you set yourself up for success.

FAQs

1. Is an edtech franchise profitable in India in 2026?

 Yes, especially skill-based and hybrid ones with recurring business models.

2. Is it better than a traditional coaching center?

 It depends on your target market, but skill-based ones are more scalable and less dependent on faculty.

3. What is the best investment range in online education franchises in india?

 It depends on the brand, but most low cost education franchises in India models have lower infrastructure investments compared to traditional large coaching centers.

4. Is hybrid model better than fully offline?

 Yes. Hybrid models expand reach and reduce geographic limitations.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.