Industry Odisha Bureau, Jul 13: Driven by factors like growing demand for quality education, long-term relationships the schools build with the students and families, and above all the potential for profit through the business ecosystem around schools, the private equity (PE) firms are reportedly investing in the Indian K-12 school business.
As per reports, “The PE firms are focusing on investing in for-profit entities that provide essential services such as infrastructure, technology, support services, and franchise models. By doing so, the PE firms, thus, comply with India’s non-profit mandate while driving returns. Despite the regulatory challenges like the not-for-profit requirement for the Central Board of Secondary Education (CBSE) and respective State Boards’ affiliation, the PE firms are finding ways and means to navigate these obstacles, and are increasingly investing in the Indian K-12 school business.”
Reports also added that, “The PE firms’ investment landscape is evolving as they are focusing on well-established private school chains running smoothly and have strong reputations. The PE firms are also lured by the school groups having strong cash flows and consolidation.”
Notably, “K-12 education refers to the full range of primary and secondary schooling from kindergarten (KG) through 12th grade, covering ages roughly 5 to 18 before the college and university stints.”
