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India K-12

India to become $225 billion education market by FY25: Loestro study 

May 11, 2024

India K-12, with its 1.5M schools and 265.2M enrolments, standing as the second largest school system in the world, is set to witness disruptive trends across the entire ecosystem. By 2030, the number of school going children in the age bracket of 4-17 years is estimated to be 300M.

With the influx of global school groups into India’s K-12 market, rise in platforms, and rising interest amongst private equity funds and investment houses in the sector, the India K-12 growth story continues to shine, as per the latest report titled “State of India K-12: Resilience Amidst Uncertainties” by LoEstro Advisors, India’s leading education focused investment banking and consulting firm.

The report focuses on studying the growth of India’s emerging K-12 market, related opportunities and key trends across the sector on themes like market, economics, investment and regulatory landscape etc., key commentary by industry stakeholders, future expectations and growth priorities for players across the sector, to thrive in the India K-12 growth story.

Key highlights from the report:

– India K-12 has seen entry of marquee global school groups with 3 out of the top 5 global operators setting foot across India and GSF’s US$550M India investment masterplan, and interest of ed-techs in brick-and-mortar K-12 assets with Physics wallah setting its foot in India K-12.

– K-12 economics has been driven by macro themes like premiumisation of education, rise of competition and awareness, rationalisation of cost structures, capex upgrades and increase in staff salaries, while most school operators have seen an uptick in marketing spends with costs going as high as 5%-10%.

– The investment landscape has been marked with streamlining of investment structures, consolidation, resurgent interest from funds with big transactions such as Kedaara Capital’s ~US$150M investment in Orchids, and diversification in financing options.

– 93% of educators reported increase in workload with the changes in pedagogy and 92% of educators reported the enhancement of learning outcomes with the growing use of technology.

– Over 45% of parents reported increased involvement in their child’s education with 59% of them expressing positive views on the integration of technology in the learner life cycles in schools.

– Operators across the sector exhibited a stronger emphasis on upskilling and tech integration, coupled with a favourable outlook on the investment landscape.

– Hybrid-schools, multimodal education, personalisation of education, delivery modularisation, project-based pedagogy, relaxations in regulations are some major forward-looking themes for India K-12.

The “State of India K-12” report marks a significant contribution to the ongoing dialogue surrounding the future of K-12 education in India. With its comprehensive analysis and forward- looking perspective of the sector and its stakeholders, the report is poised to become a significant and comprehensive resource for operators, investors, regulators and commentators to drive discussions and shape strategies within the education industry and beyond.

“We are excited to present the inaugural edition of our “State of India K-12” report. We have titled this report “Resilience Amidst Uncertainties”, recognising how strongly the sector has bounced back from the unprecedented challenges brought by Covid-19,” said Rakesh Gupta, Managing Partner at LoEstro Advisors.

“As an education focused investment banking and consulting firm, it is important for us to provide stakeholders with actionable insights that help them navigate through uncertainty and foster informed decision-making. By shedding light on the resilience inherent within the K-12 s ector, we aim to empower investors, educators, policymakers, and industry participants to navigate the evolving educational landscape with confidence and foresight.”

For access to the full report, please reach out to [email protected] or [email protected]

LoEstro Advisors is India’s leading investment banking firm specialising in sell-side fundraise and M&A advisory, along with a strong consutling arm. To learn more, visit https://www.loestro.com/

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