Private equity (PE) investments are increasingly shaping the education sector, particularly in K-12 segments, with a growing focus on for-profit service companies that support schools.
Despite regulatory constraints in India, such as the not-for-profit requirement for school affiliations, PE firms are investing in platforms that offer services like curriculum, teacher training, technology, and infrastructure to schools.
Investments in education have seen a significant uptick post-2010, with a notable increase in K-12 transactions in the last five years, signaling a shift towards service-led models and investor comfort in the sector.
While exits are limited for investors at the moment, there is growing interest in strategic sales and consolidation within the education sector, with a focus on achieving meaningful scale and leveraging technology for transformative impacts.