Focus will be on the top 30 cities in India, says Seshasai KVS, CEO, Kangaroo Kids Education
Pre-school and K12 schooling firm Kangaroo Kids is looking to expand to 350 pre-schools in next three to five years. In an interaction with Moneycontrol, Seshasai KVS, CEO, Kangaroo Kids Education (KKEL) said it just crossed the 100 pre-school mark in March 2019.
"The focus will be on the top 30 cities in India. This is where our major market is," he added.
Seshasai explained that beyond the large cities, the market gets thinner and the price-point in the smaller towns is not sustainable in the long run for the company.
The pre-school market has both big and small players operating across different price points. Smaller towns also have a large segment of unorganised players operating in this space.
KKEL also operates in the K-12 school education space through the Billabong High International Schools across the country.
Seshasai said Kangaroo Kids currently has 27 schools. The company-owned company-operated schools are four and they are looking to add 10 such schools in the next three to five years, according to him.
However, he said they will be cautious on the K-12 segment.
"We do not want to blindly open schools across the country. We will be very selective and will take a call on opening every new school based on the franchise partner and the location. The partner should have financial stability and a long-term vision," he added.
For setting up a school, an investment of at least Rs 15 crore-20 crore is required. The breakeven period in smaller towns is also generally longer.
KKEL is owned by EuroKids after it was acquired in 2017. Seshasai explained that they continue to operate as an independent company, though there are synergies in the area of human resources, legal and real estate.
Interestingly, Gaja Capital that had brought 50 percent stake in EuroKids in 2013 (now owns around 75 percent) has put the company on the block. This includes KKEL as well. While Seshasai refused to comment on the sale process, he added that this would merely be a change in the investor.Going forward, KKEL is looking to expand its school network in the GCC market into locations like Kuwait, Saudi Arabia, Doha, Qatar and Bahrain.