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August 18, 2008

The Booming Business of Education

Business Today has a detailed article on the rising interest of entrepreneurs and investors in the education sector.
The next wave of great entrepreneurial activity in India is going to be centered around education. India’s 75,000 private schools account for just 7 per cent of total institutions and enrol 90 million students. Of course, there’s a slightly larger universe of children, about 129 million, who go to public schools. Still, that leaves 142 million students who are not in the system yet, says a CLSA report on education.

Game for more numbercrunching? The country has nearly 370 universities and 18,000 colleges, 500,000 teachers and the third-largest system in terms of enrolment with more than 10 million students. Whereas, Japan with its nearly 128 million people, has 684 universities, USA with 300 million people has 2,364 universities, and Germany with 82 million people has 330 universities.

...India’s education and training sector market is valued at $40 billion with a potential 16 per cent fiveyear CAGR as per the CLSA report. “Bulk of the core education space is around K-12 and there now appears to be a glut in engineering colleges and B-Schools,” says Ashish Rajpal, co-founder, iDiscoveri, a company that, among other things, seeks to provide learning aids and training to educators and also business leaders.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.