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Why PE firms, strategic investors must prepare for regulatory changes in preschool sector

VCCircleVCCircle · 1m
Why PE firms, strategic investors must prepare for regulatory changes in preschool sector

Private equity firms and strategic investors eyeing the lucrative Indian preschool sector must prepare for upcoming regulatory changes. The Indian preschool market is expected to reach $10.2 billion by 2032, but so far, the sector has largely remained unregulated. However, with increasing awareness of the importance of preschool education and a rise in disposable incomes, the government is keen to regulate the sector. Changes may include requiring preschools to be sponsored by not-for-profit organizations, prohibiting franchising arrangements, and enforcing reservation requirements for economically weaker sections of students. Investors should take these potential regulatory changes into account when considering investments in the preschool sector.

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