In a strategic pivot, India's leading online skilling companies are moving beyond partnerships with traditional institutions and are now actively seeking to become full-fledged universities themselves. This shift is driven by the nation's enormous young population, tightening visa rules abroad, and the long-term credibility that comes with awarding recognized degrees.
The Strategic Shift from Partnerships to Independent Status
For years, platforms like Master's Union and Scaler built their reputations by offering co-branded courses with established universities and IITs. However, founders now say that model has inherent growth limitations, especially for undergraduate programs where a formal degree holds paramount importance. Pratham Mittal, founder of Master's Union, revealed the company has applied for licenses for both undergraduate and postgraduate degrees with state education departments and the University Grants Commission (UGC).
"We always wanted to build a university status. Governments do not look favourably in many situations until and unless you are a licensed player," Mittal stated. Achieving this status would allow entry into the National Institutional Ranking Framework (NIRF) and the Association of Indian Universities (AIU), unlocking access to rankings, funding, and formal recognition.
Similarly, Scaler is engaging with regulators to explore formal accreditation routes. Abhimanyu Sharma, Scaler's co-founder and CEO, pointed out that traditional university partnerships often lack the governance and operational clarity needed by venture-backed firms. His company's Scaler School of Technology, launched in early 2024, received nearly 30,000 paid applications this year, highlighting strong demand.
A Perfect Storm of Demand and Policy Change
This move coincides with a unique demographic and policy moment for India. Approximately half of India's 1.4 billion population is under 25, creating the largest higher-education-eligible cohort in history. Narayanan Ramaswamy of KPMG calls the next 25–30 years a "rare demand window" for institutions.
Concurrently, the National Education Policy (NEP) 2020 aims to overhaul higher education, pushing for greater institutional autonomy and a massive increase in the Gross Enrolment Ratio (GER) from 28.4% to 50% by 2035. The UGC is also encouraging more private participation. Furthermore, stricter visa norms and reduced post-study work opportunities in destinations like the US, UK, Canada, and Australia are keeping aspirational Indian students home, redirecting demand to domestic institutions.
The market potential is vast. Grand View Research estimates India's higher education revenue will nearly triple from $19.4 billion in 2023 to $54.4 billion by 2030, growing at 15.8% annually.
High Barriers and a Focused Approach
Securing a university license is no simple feat. Regulations typically mandate owning or leasing 10 to 30 acres of land, a significant capital requirement that deters smaller players. PhysicsWallah is tackling this by signing an MoU with the Government of Andhra Pradesh to build a University of Innovation. Scaler is also evaluating a nearly 20-acre site for expansion.
Not all players are rushing in. Some, like Masai, are focusing on deepening partnerships with top institutions for now. Others, like Mesa School, note that the postgraduate skilling segment has less urgent need for formal degrees, keeping them out of the licensing race for the time being.
Experts caution that while the government is opening doors, regulatory filters on land, accreditation, and screening have become sharper. "They want more players, but not everyone," said Ramaswamy, emphasizing a controlled expansion focused on quality. The journey from edtech disruptor to established university is a heavy lift, but for India's top skilling firms, it's becoming the definitive path to long-term legacy and impact.
