Education franchise 2019-04-02

This is Why Opportunities in Preschool Franchise Sector are Flourishing in Tier-I & II Cities

The preschool education industry itself in India is currently valued at more than 15,000 Crores, growing at a high CAGR of 23%. Read on...

By Senior Sub-editor
This is Why Opportunities in Preschool Franchise Sector are Flourishing in Tier-I & II Cities

India is home to one of the largest population of children, which comprises of a population of almost 15 crore children, that fall in the age group of 0-6 years and need care & early education.

Due to the rising competition for employment opportunities, shrinking space, it has become very common for the parents to work doubly hard to provide their children with a good future, which is why double income households have seen growth in the past couple of years.

Reasons for the Growth of Pre-schools & Daycare Franchises

As S.K.Rathore has rightly put in his words, “Today, the parents have become very busy with their work especially in metro cities, which is why they want the preschools and daycares to take care of the children. This is one of the reasons pre-schools and daycare franchises have grown and spread rapidly in metro cities.

Following the metro cities’ footprint, the tier-I and II parents also want their children to be prepared enough for future competitions, and that’s why they also want their children should get the education and care from their early years of learning. This is also another reason why preschool and daycare franchises have entered the tier-I & II regions and growing successfully.”

Potential of the Pre-school Franchises

The pre-school education industry itself in India is currently valued at more than 15,000 Crores, growing at a high CAGR of 23%.

According to reports, the preschool industry currently runs on three models. The unorganized sector, which is made up of local homegrown pre-schools constitutes around 70-80% of the market. Organized preschools, that operates on a franchisee model and is relatively smaller in number. The third model is the school feeder model with some regular K-12 school starting their own preschools to tap the early toddler market as well.

Rathore adds, “Lacs and lacs of play schools and pre-school franchisees are required to educate our younger generation. At the same time, the higher education system is required. So, there is a lot of potentials at least for the next 50 years. We have to work very hard and aggressively to fulfill the demands of the future.”

Opportunities in Small Towns & Cities

According to reports, the Indian preschool market is currently highly underpenetrated with only 17% of the children in the age group of 1.5-4 years attending preschool. The percentage is even lower in the smaller towns where less than 10% of children attend preschool.

Due to competition within the sector especially in metro cities, the preschool franchise brands are targeting the smaller cities and towns to penetrate their brand. Also, the growing awareness about pre-schools where the emotional, physical and intellectual of children are being taken care of at the early age has drawn more and number of potential women franchisees to run the preschool franchises.

There is significant growth seen in the small towns and cities as well as the popularity of preschool education growing in the past couple of years and will increase in the future as well.

star franchise india
Related opportunities
  • Others Food Service
    About Us: Own the American Dream In India with U.S.Pizza! Since its..
    Locations looking for expansion Karnataka
    Establishment year 1998
    Franchising Launch Date 2002
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Urban District Karnataka
  • Tea And Coffee Chain
    Beontea is a revolubon, Tradibonal tea, automated process and consistent tase...
    Locations looking for expansion Uttar Pardesh
    Establishment year 2019
    Franchising Launch Date 2020
    Investment size Rs. 2lac - 5lac
    Space required 050
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Uttar Pardesh
  • Bike Maintanance & Repair Services
    About Us: Speedforce under the banner of Multi Brand 2 Wheeler..
    Locations looking for expansion Gujarat
    Establishment year 2013
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Vadodara Gujarat
  • Furniture/Home Decor & Furnishing
    WoodenStreet has been leading the front of providing premium quality..
    Locations looking for expansion Haryana
    Establishment year 2015
    Franchising Launch Date 2021
    Investment size Rs. 20lac - 30lac
    Space required 1200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

ads ads ads ads