Photo - Exam preparation platform
25992

Exam preparation platform

Tajikistan
Market: Internet and IT, Education, training, Mobile applications
Stage of the project: Prototype or product is ready

Date of last change: 23.05.2018
Min investment
$  50.000
1
Total required
$ 150.000
Rating
equalizer 433 из 1000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:

Idea

The project develops a mobile app and a website for exam preparation, that combines 4 key characteristics of effective education: microlearning (short and visualized lessons), gamification (motivation for studies), exam simulation (knowledge assessment) and individualization (personal approach to each student using the algorithms of spaced repetition and machine learning).

Current Status

• UX/UI design for app and web-versions of the platform.
• Materials and tests for 4 exam subjects.
• Algorithms for spaced repetition and machine learning.
• Web-prototype for one subject (biology).
• Research on the effectiveness of the product.
• Memorandum of cooperation with 9 educational centers.
• Memorandum of cooperation with 26 tutors.
• A team of teachers/authors for content development.
• Registered LTD.
• Copyrights and patents (executed by LLC).

Market

Repetitor focused on the most monetized part of the education market: 47% of the paid additional education market is the market for preparation for standardized exams. The last 3 years online platforms providing preparation for standardized exams are among the most investment-attractive EdTech startups (the five largest investments in such projects in 2016 totaled 175 million dollars). Our product is focused mainly on the exam preparation market of the CIS countries, in which there are no quality products occupying more than 1% of the market.
Repetitor corresponds to the main trends of the EdTech market. According to the research, among the EdTech products the highest growth show companies that create educational solutions built on gaming mechanics (+22%) and simulation of real processes (+17%).
The market size of the online education in 2017 was estimated at $165 billion. Growth rates of online education by regions: USA – 4–4,5%, Asia (especially China and India) – 17%, Eastern Europe – 17%, Western Europe – 15%, Russia – 17–25%. The average annual growth of the market, according to various researches, is 5 to 17%. It is expected that by 2023 the world market of online education will amount to 240 billion dollars.
The market size of additional school education in Russia in 2017 was estimated at $2.6 billion, while the share of online education was 2.7%. Experts predict that by 2021 the market of online education in this market will be 6.8%.
At the beginning of 2017, 2% of schoolchildren in Russia received additional education solely by online, and 5% – used a mixed format – online and offline. It should be noted that 28% of the money in the mixed-learning segment was online. According to the research, 80% of the parents of children who study in a mixed format, allow the final transfer to online learning.


Market size for our product.

Segment of the market № 1 – Test preparation market.

How much the customer is willing to pay (revenue per user per year)?
• $18 USD.

What is the basis for the evaluation?
• Research № 1. We conducted an analysis of the prices of competitors’ products and set the price on average by 60% lower than that of competitors – $6 USD for subscription to one subject.
• Research № 2. To validate the need for the product, we conducted a survey in which we asked potential customers the question: "How many subjects are you willing to study through the Repetitor?". The majority of the respondents answered that they would like to study at least 3 compulsory subjects (for reference: in the CIS countries are preparing from 3 to 8 entrance examinations). Thus, the income from one user will be $18 USD.

Market size.
• PAM (Potential Available Market) – 1.9 billion USD.
• TAM (Total Addressable Market) – 1.8 billion USD.
• SAM (Serviceable Available Market) – 450 million USD.
• SOM (Serviceable & Obtainable Market) – 18 million USD.

Justification of the market size.
There are more than 1 billion school students in the world. Students who passes standardized exams make up about 10% of the total number of students. 10% of 1 billion will be 100 million students (TAM = 100 million * 18 USD = 1.8 billion USD).
Since 2019, will begin to graduate school the students who were born after 2003. From 2003 to 2008, the world population grew by an average of 1.23% per year. Accordingly, in 5 years the number of entrants in the world will increase by 6 million and PAM will reach 106 million (PAM = 106 million * 18 USD = 1.9 billion USD).
According to examer.ru and our own research, 25% (25 million) of entrants prepare for the exams with tutors. This group of students is solvent and ready to invest the necessary funds for quality education – both for traditional materials and electronic (SAM = 25 million * 18 USD = 450 million USD).
We plan to cover 1% of the exam preparation market, mainly at the expense of the CIS countries (SOM = 1 million * 18 USD = 18 million USD). The hypothesis about our ability to occupy this market share comes from both the characteristics of the market and the characteristics and advantages of our product:
• In our market, products evaluate according to two main parameters: the effectiveness of content and the effectiveness of the teaching methodology. By these indicators, Repetitor surpasses all competitors.
• Our product is on the average 60% cheaper than competitors’ products.
• Our product is 5 times cheaper and 5 times more effective than traditional materials.
• Duolingo (the language learning application) has reached 150 million users in 5 years thanks to 4 key elements. Repetitor contains all these elements, as well as other elements specific to school subjects.
• There are no products on the test preparation market, which occupy more than 1% of the CIS market, accordingly, our product has no strong competitors.


Segment of the market № 2 – Market of distance learning for exam preparation.

How much the customer is willing to pay (revenue per user per year)?
• 17 USD.

What is the basis for the evaluation?
• Own research. We analyzed the most popular resources to find tutors for online learning in Russia, Belarus, Ukraine, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan (repetitor.org, profi.ru, tutoronline.ru, preply.com, repetitori.by, t-repetitor.by , repetitor.kz, bestrepetitor.kz, revizor.kg, repetit.kg, mytutor.uz, superjob.uz, somon.tj, rg.tj). The average price of one individual online distance class for the studied countries was ≈3.5 USD. Our commission will be 10% – 0.35 USD.
• Hypothesis. Classes are held on average 8 times in month during 6 months of preparation. During this period, one user will take 48 lessons, from which our income will be 17 USD.

Market size.
• PAM (Potential Available Market) – 1.8 billion USD.
• TAM (Total Addressable Market) – 1.7 billion USD.
• SAM (Serviceable Available Market) – 11.5 million USD.
• SOM (Serviceable & Obtainable Market) – 578 thousand USD.

Justification of the market size .
25 million students in the world take additional classes from tutors to prepare for standardized exams. According to the report "Research of the Russian market of online education and educational technologies", the penetration of online learning into the market of additional school education is 2.7%. Accordingly, the number of users of online learning in the test preparation market is 675 thousand (SAM = 675 thousand * 17 USD = 11.5 million USD).
We plan to cover 5% (34.000 users) of the market of online test preparation, mainly at the expense of the CIS countries (SОМ = 34 thousand * 17 USD = 578 thousand USD). The hypothesis about our ability to occupy this market share is based on the following:
• We will provide tools for teachers and tutors for conducting online classes.
• Users of our resource are 5 segments of users who are related to the exam preparation. On such a resource, tutors will find students easier and more efficient, and parents and students can easily find tutors.
Despite the small size of this market segment at the moment, the goal of entering it is its upward trend in recent years. According to the report "Research of the Russian market of online education and educational technologies" mentioned above, the penetration of distance learning into the market for additional school education at the beginning of 2017 is 2.7%, and by 2021 it is projected to grow to 6.8%.

Market sizes for all segments.
• PAM (Potential Available Market) – 3.7 billion USD.
• TAM (Total Addressable Market) – 3.5 billion USD.
• SAM (Serviceable Available Market) – 461.5 million USD.
• SOM (Serviceable & Obtainable Market) – 18.5 million USD.

Problem or Opportunity

During preparing for exams, students face the following problems: 1) lack of an effective system of control and individualization of the learning process; 2) lack of motivation to study hundreds of pages of "boring" texts; 3) high price of quality additional lessons; 4) lack or absence of highly qualified tutors in the regions.

The target audience of the project: entrants – high-school students, who are preparing for entrance examinations to universities.

Why are customers willing to pay us?
Students who finish school are preparing for one of the most important events in their life – they must enter the university. In order to enter a good university, students are willing for studying, and their parents are willing to invest the necessary resources for the studying. This is evidenced by our researches.
Research № 1. 25% of students use additional lessons from tutors and spend an average of 800 USD for the period of preparation. The cost of our product will be only 2% of the amount that students spend for additional lessons. In addition, our product increases learning efficiency by 5 times and costs 5 times cheaper than traditional paper materials.
Research № 2. Students of 8th, 9th and 10th grade spend on self-studying 1.4 hours per day and entrants (high school students) spend 4.3 hours (3 times more).

Solution (product or service)

Repetitor – is a mobile app and a website that includes the following set of products and services:
• For students: materials for learning, tests for knowledge control, gamification of lessons for motivation to learning, spaced repetition and machine learning algorithms for individualizing of learning process.
• For teachers and schools: the opportunity to create their own classes, automated statistics and reports, conducting tests and exams on the Repetitor platform.
• For parents: statistics, reports and notifications about the progress of their kids.

Finance

Segment 1. Exam preparation.
Income model: sale of a subscription for the learning of exam subjects. The annual subscription for 1 subject costs 6 USD. Users on average subscribe for 3 subjects; the income from one user will be 18 USD.
Forecast of segment revenues:
2018 – 74 thousand USD
2019 – 370 thousand USD
2020 – 780 thousand USD
2021 – 1.20 million USD
2022 – 2.08 million USD

Segment 2. Distance lessons for exam preparation.
The income model: a commission from distance lessons conducted on the basis of our platform. Our commission from one lesson will average $0.35.
Forecast of segment revenues:
2019 – 3300 USD
2020 – 21.800 USD
2021 – 58.800 USD
2022 – 176 thousand USD
To launch a commission model, it is necessary to gain a critical mass of users (students and tutors), so we plan to implement this monetization model in September 2019.

Forecast for total revenue from all segments:
2018 – 74 thousand USD
2019 – 375 thousand USD
2020 – 803 thousand USD
2021 – 1.26 million USD
2022 – 2.26 million USD

Business model

Monetization model No. 1 – Freemium, subscription to examination subjects.
Model Description: students choose in Repetitor the subjects for which they are preparing for the exam. 5 trial lesson lessons are free, activation of the whole subject costs $6 USD.
Paying segment of the target audience: students-entrants (or parents of students).

Monetization model No. 2 - Commission model.
Model description: tutors and students will conduct joint distance classes on the base of our platform. We will receive a commission of 10% for the lesson.
Paying segment of the target audience: tutors, conducting distance learning.

Product Video

Comments:

You need to login

5,00
1
2
3
4
5
1 voice
Log In/register
arrow_back
EN
more_horiz
close
visibility382
star1
Add to favorites
Delete from favorites
share
close
thumb_up3
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Product Video