EuroKids: Here's how India's top preschooler plans to grow

The education space is fast emerging as an entrepreneurial opportunity. According to data released by the Department of Industrial Policy and Promotions (DIPP), it has attracted foreign direct investment (FDI) of over USD 500 million in the last three years.

In a country, where the gaps between education, employment and employability are so large, there is a definite need for product innovations and a change in the mode of delivery of education.

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Launched in 2001, EuroKids International has a network of over 850 preschools and 16 schools and over 900 franchise partners. The venture also has a publishing arm called Euro Books, which specializes in children's books and has emerged as India’s largest publisher and distributor in this niche space. Having already gross revenues of Rs 75 crore, the venture is looking at adding over 500 preschools in the next three years.

Co-founders Prajodh Jain and Vikas Phadnis started their journey in the education space as publishers of children’s books in 1999 with Egmont International, a media company from Denmark. A decade later they diversified into the preschool business with EuroKids International. Prajodh and Vikas called the preschool business a 2 kilometer opportunity and early on decided that if they have to achieve scale, they would have to work on a franchise model.

However, since quality of service is key, the team at EuroKids ensures that teachers and staff at all franchise partners are under extensive training and use only proprietary study material and teaching aides.

Vikas Phadnis, Co-founder, EuroKids International talked about how it started. They had a situation where the Egmont International Holding as an organization was looking at refocusing on their core markets in Scandinavia. At that time, they had options of either looking at closing down businesses in Asia or looking at local buyers for the business. "Me, Prajodh and two other partners came together and we bought the business from Egmont International Holdings. That is how this whole thing started as our journey from professional managers to entrepreneurs began in 2004 along the way we kept on growing," he added.

In 2008 they got the first round of funding of Rs 39 crore from Educomp and the success of its preschools. EuroKids International launched its first school for the K-12 segment in Mumbai in 2009. With investment in each tier I city school ranging from Rs 70-75 crore depending on the land and building lease, Euro currently runs 16 schools across 11 cities with 11,000 students on its rolls.

EuroKids International generates revenues for a mix of franchise fee at 20 percent royalty charge on school fee collected and the sell of study curriculum.

Prajodh Rajan, Co-Founder, EuroKids International said that they have a programme called Speak, which they will be launching very soon. He explains that it is a phonics programme, so kids can come back after school at a preschool center for the phonics programme. They have a program called the Eurostar Academy of performing arts where they are doing music and dance for children ages 3 and 10 years.

The firm is also launching EuroKids Teachers Training Institute on an online platform and they are also making some of the EuroKids centers as study centers when we offer this on an online programme. The schools is just one vertical, the venture is also publishing arm Euro Books, which specializes in children’s books. It has today emerged as India’s largest publisher and distributor in this niche space.

Having recently raised Rs 50 crore from private equity firm Gaja Capital, the duo plans to use the money for expanding all three business verticals that is the publishing arm, preschools and K-12 schools.