FirstCry enters pre-primary segment by acquiring Oi Playschool
FirstCry has acquired Oi Playschool for an undisclosed amount of money. With this acquisition, the online-first baby products retailer has forayed into the pre-primary education segment.
The Pune-based company acquired Oi Playschool, a part of the People Combine Group, through Edubees Education. Hyderabad-based LoEstro Advisors acted as the exclusive financial advisor to Oi Play Schools on the transaction.
Naga Prasad Tummula, Chairman at People Combine Group, said, “Oi’s students and employees would benefit because of Firstcry’s long-term vision for the pre-primary business.”
Supam Maheshwari, Chief Executive Officer of FirstCry, stated, “We are very happy with the accomplishments Oi Play School achieved over the years. It was a pleasure to work with the company’s management team.”
Current Scenario of Preschool Market in India
The Indian pre-school market has witnessed healthy growth in recent years. This market in India is poised to grow at a CAGR of around 19% during 2019-2024.
The growth of the Indian pre-school market is driven primarily by factors like rising parent awareness for early childhood education and care, coupled with the rising number of nuclear families and working women in the country.
As of 2015, there were 33,000 preschools in the country and the number is growing exponentially. Enticed with such huge potential, entrepreneurs are willing to invest in the preschool market.
Franchising Prospects of Preschool Industry
Franchising is the trend of the hour, and pre-school franchises are gaining tremendous popularity owing to an increase in demand for reputable brands, higher disposable incomes, etc. For a pre-school franchise, you would require a moderate investment with high-profit revenue.
In India, investing in a preschool franchise is one profitable option for investors that are planning to start something of their own. In fact, the preschool education industry is growing by leaps and bounds, which is eventually opening the gate of opportunities for aspiring franchisors.
Since the segment requires lesser regulatory limitations and has a minimal infrastructural requirement, the industry is all set to emerge as one of the profitable education business options in the near time.
Typical Franchise Requirements
The typical investment range to start a preschool franchise is Rs 5 lakhs and can range up to Rs 50 lakhs, with an area requirement starting from 1500-2000 sq ft. The breakeven period in most of the preschool franchises can be expected in 12-24 months.