M-Shule Analyst Report - ETEC 522 - A1

Jessica Daicos | October 2020

VENTURE ANALYST REPORT

Kenya's 'mobile school'

M-Shule

Investment requirement

Ask

& Competitive edge

Opportunity Space

Recommendations for investment

Conclusions

Does it meet criteria for success?

Assessment

Africa // Kenya

2. Market

At a Glance

Actions and recommendations

New opportunities in a changing world

4. Forecast

2020

Leadership

AI meets SMS

Facts and figures

Venture profile

Team

Product Demo

3. M-Shule

For a successful venture

Challenges to consider

Why invest in African EdTech?

Big Idea

Criteria for success

1. Rationale

Index

01

Why digital learning technologies for developing countries?What challenges exist?

RATIONALE

of children and adolescents are not achieving a minimum level of proficiency in reading and math

- UN Sustainable development goals

60%

of African learners are already in learning poverty.

90%

With the pandemic closing schools, it may take students more than

to catch up for each term missed.

2 years

- Pathways Commission Report (2019)

"... digital technologies, used well, are already helping to overcome some of the specific, serious challenges of health and education delivery in the developing world."

From 2020-2025, Africa's e-learning market is expected to grow at a compound annual growth rate of 14.5%. By 2025, it is projected to be worth over US$ 2 billion.

+14.5%

CASE STUDY: One laptop per child

Can adaptive learning software provide customisation for students in the most marginalised communities?

was it designed to benefit everyone?

FOR ALL

Who are the stakeholders and decision-makers? How does the government fund and support education? What cultural attitudes must be acknowledged?

do the underlying systems support learning?

SYSTEMS

Are the infrastructure (internet, electricity, digital/data standards) and human capacity (digital skills, social acceptance, institutions) in place?

does the technology have the appropriate support?

RESOURCES

Is digital connection affordable?

is it an appropriate and cost-effective solution?

ECONOMIC

According to the 2019 Pathways Commission Report, technology can help improve education systems if the following conditions are met:

Criteria for Success

big idea:

How can the lucrative African e-learning market be accessed so as to improve education outcomes while generating profit?

and then:

How can we predict the investment's success by supporting a venture that respects the local markets, cultures and stakeholders?

02

How promising are digital learning technologies in Sub-Saharan Africa?

Market Analysis

in SSA think the internet is a good influence on education

SUMMARY

79%

1. Rising disposable incomes
2. Increasing population
3. Increasing government initiatives
4. Rising internet penetration
5. Growing smartphone industry

Top 5 e-learning market drivers:

market analysis

of students that enroll in primary school will make it to university

<10%

1. Nigeria
2. South Africa
3. Kenya

Top 3 smartphone markets in Sub-Saharan Africa (SSA) by 2025:

mobile connections expected in SSA by 2024

1b

Top 5 leading regions in the e-learning market (2019):

1. South Africa
2. Morocco
3. Nigeria
4. Tunisia
5. Kenya

AFRICA

of the average monthly income

1GB of data costs

18%

Share of web traffic by device:

SUMMARY

are internet users (on any device)

43%

market analysis

new mobile subscribers by 2025

of Kenyans who have a mobile phone use it for learning

56%

live in rural areas

+7m

As a percentage of population:

72%

(20.5 million)

of Kenya's population is aged 14 or under

40%

own a mobile phone

62%

have 3G coverage

96%

Kenya

03

Venture Profile

M-Shule

Adaptive learning allows for personalisation of tutoring and instant analytics. Insights are shared with key stakeholders.

Data Driven

Facilitates relationships between school directors, teachers, parents and students

Builds community

Mobile SMS learning

Can be used on any mobile phone and does not require internet access

addresses Kenya's love of mobile phones, high cost of internet connectivity and need to support a growing population of students in regional settings.

M-Shule

Improvement in student exam scores

+20%

EXPAND

"Only 10% of schools in developing countries currently have internet connection. We need to be more creative and more innovative in connecting them to powerful learning tools and M-Shule wants to be that platform for students across the entire African continent. "

Claire Mongeau: founder

At a glance

Learners in 2020

Holon IQ's list of Africa Edtech 2020

Learners in 2017

12,000+

400 to 4000+

Top 50

Cost to schools to manage data

Est. revenue by 2023

Cost per student

Established

$8.33/month

$0.90/month

$10M

2016

"M-Shule is the first adaptive, mobile learning management platform designed to improve performance [in Math and English] for millions of primary school students across Kenya and Sub-Saharan Africa."

Investors and awards

Achievements

Facts and figures

How it works:

Objective

Product Demo

Adaptive learning personalises student learning at the point of need.SMS makes the platform accessible by any mobile phone, without requiring internet connectivity.Learner performance is tracked and shared with parents and schools.

AI meets SMS

Insights

Head of Operations

PhoebeKhagame

Head of Learning

SaraCohen

Co-Founder & Chief Technology Officer

JulieOtieno

Co-Founder & CEO

Claire Mongeau

Team

Opportunity Space

Summary

Competitors

Retaining Customers

Growing customer base

04

Venture Assessment and Investment Recommendations

Forecast

More than 85% of Africa's population works in the informal economy, and the pandemic has decimated their lives. Incomes are down, schools are closed, and families cannot access resources to keep learning and stay safe.

Claire MongeauM-Shule Co-Founder & CEO

2020

M-Shule adapts to provide COVID-19 solutions for healthcare and learners.

03

02

Its adaptive learning platform continues to support students and communities during school closures. Parents spend less money on educational materials and schools can track learning progress at a distance.

School closures

We will reach at least 10,000 families throughout the pandemic, launching educational and health information immediately and continuing for at least three months until the curve flattens

M-Shule's new Coronavirus Response Toolkit encourages better understanding of COVID-19. It is available in several local languages and is accessible without internet access.

Pandemic communication

01

Through a partnership with Jacaranda Health and Health-E-Net, M-Shule created an e-learning platform to accelerate referrals for high-risk mothers.

Healthcare support

Author Name

Meeting these goals requires strategic funding and collaboration to support content expansion and partnerships with health organisations.

• Funding - Grants
• Funding - Loans
• Funding - Investment
• Partnerships - NGOs
• Partnerships - Private Sector
• Partnerships - Government

Seeking:

To continue responding effectively to the changes of 2020, M-Shule aims to:1. Increase content production2. Support more out-of-class learners3. Onboard more team members

Investment needs

M-Shule's Ask

Analysis

Analysis

Analysis

Analysis

Can adaptive learning software provide customisation for students in the most marginalised communities?

was it designed to benefit everyone?

FOR ALL

Who are the stakeholders and decision-makers? How does the government fund and support education? What cultural attitudes must be acknowledged?

do the underlying systems support learning?

SYSTEMS

Are the infrastructure (internet, electricity, digital/data standards) and human capacity (digital skills, social acceptance, institutions) in place?

does the technology have the appropriate support?

RESOURCES

Is digital connection affordable?

is it an appropriate and cost-effective solution?

ECONOMIC

M-Shule meets the criteria set out by the 2019 Pathways Commission Report.Click to view the analysis for each category.

Venture Assessment

The Sub-Saharan African mobile learning technologies market is experiencing rapid growth. Kenya, in particular, is forecast to expand in its demand for e-learning and mobile technologies.M-Shule has responded well to the SSA learning technologies market. Its platform has also been effectively designed to cater to students in the most marginalised communities. The team's expertise in and passion for education in East Africa is no doubt responsible for its thoughtful and appropriate design.

Venture Analysis

Conclusion

Home

Though Eneza is a significant competitor, M-Shule creates unique value by providing a highly personalised learning experience and building supporting relationships. Eneza's success may forecast similar growth for M-Shule.M-Shule's strategy positioned it well for the shift to remote learning in 2020. It has adapted admirably to support communities during COVID-19, both in learning and healthcare. New investment and partnerships will allow for continued expansion of their initiatives. While the venture has so far performed well, updated growth and revenue forecasts are not publically available after 2017. This data would be crucial for calculating expected investment returns and requires further investigation.

Investment Recommendations

Conclusion