The decision by Ankur Warikoo to shut down his profitable online course platform WebVeda has sparked discussion across India’s EdTech industry. Despite generating more than ₹100 crore in revenue and nearly ₹25 crore in profit, Warikoo announced that the growing impact of artificial intelligence (AI) made continuing the business “no sense anymore.”
Launched in 2020, WebVeda served over five lakh students through online courses focused on personal growth, careers, and entrepreneurship. However, the rapid rise of AI-powered education tools is changing the economics of digital learning. AI can now create personalized lessons, adaptive study plans, and automated course material at scale, reducing the long-term value of traditional online course models.
Industry projections show that the global AI in education market could surpass $136 billion by 2035, compared to around $7 billion in 2025. This transformation is forcing EdTech companies to rethink how they deliver value to learners.
AI Reshaping the EdTech Industry
Warikoo’s exit comes during a period of major correction in the EdTech sector. While India’s EdTech market is still expected to grow strongly over the next decade, the industry focus has shifted from aggressive expansion to sustainable business models and measurable outcomes.
The struggles of major players like BYJU’S have already highlighted the challenges facing online education businesses. Learners today have access to free or low-cost educational content across multiple platforms, making it harder for paid courses to maintain premium pricing.
AI is accelerating this shift by making content creation easier and cheaper. Tools powered by generative AI can now design courses, generate explanations, create quizzes, and personalize learning experiences in minutes. This lowers entry barriers for new startups while increasing pressure on existing platforms.
Warikoo appears to believe that AI-native education platforms will dominate the future, leaving traditional course businesses vulnerable.
Profitability No Longer Guarantees Survival
What makes the WebVeda shutdown notable is that the business remained highly profitable. Closing a venture earning ₹25 crore in profits suggests Warikoo is prioritizing long-term sustainability over short-term gains.
His statement reflects a growing belief within the industry that current EdTech business models may struggle to compete in an AI-driven future. Maintaining large content libraries and course ecosystems could become less valuable when AI can instantly generate customized learning material for users.
Unlike large global platforms such as Coursera or Unacademy, smaller education businesses may find it difficult to invest heavily in advanced AI infrastructure.
Questions Around Students and Future Plans
The shutdown has also raised questions among students enrolled on the platform. So far, there has been limited clarity regarding refunds, access to purchased courses, or transition plans for existing users.
Warikoo has promised to share a detailed explanation soon, including insights into the AI-related challenges influencing his decision. The broader EdTech industry is closely watching his next move, as his decision could signal how entrepreneurs adapt to the rapidly changing AI-powered education landscape.
As AI continues reshaping digital learning, WebVeda’s closure may become one of the clearest examples of how technological disruption is redefining the future of online education.
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