India’s education sector is one of the fastest-growing markets globally, projected to reach $225 billion by 2025. As the demand for quality education rises, driven by a growing middle class and increasing disposable incomes, the opportunities for edupreneurs are immense. According to the Unified District Information System for Education (UDISE) report, India has over 1.5 million schools, with the private sector playing a pivotal role. However, to capitalize on this growth potential, education businesses need to adopt scalable and sustainable strategies.
In this blog, we will outline data-backed strategies that can help you scale your education business in India while ensuring long-term success.
1. Identify Your Niche and Focus on Quality
India’s education landscape is highly competitive, with over 300 million students enrolled in K-12 schools alone, according to the National Sample Survey Office (NSSO). To differentiate your business, identifying a niche market is essential. The international curriculum segment is a good example, with over 900 international schools operating in India and expected to grow by nearly 100% by 2030, based on recent industry projections.
The key to success in any niche is maintaining quality. Businesses that prioritize delivering high-value education solutions—whether in STEM, online tutoring, or specialized curriculum—will find it easier to scale. A study by KPMG highlighted that high-quality education providers in India tend to have higher retention rates, with 80% of parents willing to pay a premium for institutions with strong reputations.
Data Insight: The number of international curriculum schools in India is expected to rise from 923 in 2024 to over 1,800 by 2030, driven by increasing demand from affluent families.
2. Leverage Technology for Scalability
Technology has been a critical driver of growth in the Indian education sector, particularly in the aftermath of the COVID-19 pandemic. The edtech market in India was valued at $3 billion in 2020 and is projected to grow at a CAGR of 39% to reach $10.4 billion by 2025, according to RedSeer. The digital shift has enabled businesses to reach wider audiences, reduce operational costs, and offer personalized learning experiences through AI and machine learning technologies.
Edtech giants like Byju’s and Unacademy have leveraged AI-driven personalized learning tools to scale exponentially, with Byju’s crossing 150 million registered users as of 2023. These platforms offer valuable insights into how digital solutions can help you expand your business while maintaining quality.
Data Insight: India’s edtech market is projected to grow from $3 billion in 2020 to $10.4 billion by 2025, reflecting a significant shift toward online learning models.
3. Build Strategic Partnerships
Forming partnerships can provide your education business with immediate access to new markets and resources. In the international school segment, over 50% of K-12 institutions have partnered with international curriculum providers like Cambridge International and the International Baccalaureate (IB) to enhance their offerings.
According to Deloitte, businesses that enter into strategic alliances grow 40% faster than those that try to scale alone. For instance, ICA (International Curriculum Association) in India has been pivotal in connecting schools with global education standards, allowing education businesses to tap into a growing demand for international curriculum.
Data Insight: Schools offering international curricula are growing at a rate of 10-12% annually in India, with partnerships enabling faster expansion and access to high-paying student markets.
4. Prioritize Teacher Training and Development
The success of any education business is heavily dependent on its teaching staff. According to India’s National Council for Teacher Education (NCTE), India requires over 1.2 million trained teachers to meet growing student demand, highlighting the need for continuous teacher training programs. Businesses that invest in teacher professional development see better student outcomes and customer retention.
A World Bank report notes that institutions that offer teacher training and upskilling programs experience a 30% higher retention rate compared to those that don’t, as teachers feel more valued and better equipped to meet evolving educational standards.
Data Insight: India faces a shortage of 1.2 million trained teachers, creating an urgent need for scalable teacher training programs to improve student outcomes.
5. Optimize Your Marketing and Sales Strategy
Marketing and sales strategies are pivotal for scaling, especially in a digitally driven market. A 2023 report from Statista estimates that over 749 million Indians will have internet access by 2025, providing an enormous opportunity for digital marketing. Digital tools like Google Analytics, social media platforms, and CRM systems allow businesses to understand customer behavior, personalize marketing efforts, and optimize outreach.
Companies like Vedantu and Unacademy have successfully scaled by leveraging digital marketing, SEO, and social media campaigns, which helped them acquire users at a lower cost and build strong brand recognition.
Data Insight: By 2025, India will have over 749 million internet users, making digital marketing a critical tool for scaling education businesses.
6. Expand Your Reach Through Franchising
Franchising is a proven strategy for rapid scalability. India’s franchising market is growing at an annual rate of 30%, with the education sector contributing significantly to this growth, according to a report by Franchise India. By allowing franchisees to operate under your brand, you can expand into new geographies without taking on the operational burden yourself.
Successful education businesses like Logiscool have leveraged franchising to scale globally, operating in over 30 countries. In India, the growing middle class and rising disposable incomes have created a conducive environment for education franchising, particularly in tier 2 and tier 3 cities.
Data Insight: The franchising market in India is growing at 30% annually, with education being one of the fastest-growing sectors, driven by demand in tier 2 and tier 3 cities.
7. Focus on Customer Retention and Satisfaction
While acquiring new customers is crucial, retaining existing ones can be more cost-effective in the long run. A report by Bain & Company shows that increasing customer retention by just 5% can boost profits by 25-95%. In the education sector, building strong relationships with students and parents is key to achieving high retention rates.
Regular feedback mechanisms, personalized learning pathways, and consistent communication can help maintain customer satisfaction and loyalty. For example, educational institutions that actively engage with parents through digital platforms see a 15-20% improvement in retention, according to McKinsey.
Data Insight: Retaining customers can increase profits by up to 95%, highlighting the importance of customer satisfaction and personalized learning experiences.
8. Navigate Regulatory Compliance and Legal Structures
India’s education sector is highly regulated, with various compliance requirements from bodies like CBSE, ICSE, and state education departments. The regulatory environment can present hurdles, but staying compliant is non-negotiable for scaling your business. According to a KPMG report, regulatory compliance is one of the top three challenges for education businesses in India, especially for those looking to expand into new regions.
Failure to comply with local regulations can result in hefty fines, loss of licenses, or legal battles. Edupreneurs should invest in legal counsel and ensure all documentation, from teacher qualifications to student safety protocols, is up to date.
Data Insight: Regulatory compliance is a top challenge for 43% of education businesses in India, underlining the importance of legal frameworks for scaling.
Conclusion
Scaling your education business in India requires a strategic, data-driven approach. By focusing on niche markets, leveraging technology, forming partnerships, and ensuring regulatory compliance, your business can achieve sustainable growth in a rapidly evolving market. Edupreneurs who adopt these strategies can capitalize on the immense potential in India’s education sector and build businesses that stand the test of time.
India Market Entry (IME) has been at the forefront of providing expert consultation and guidance to global education solution providers looking to enter and expand their businesses in India. IME’s extensive experience in navigating the complexities of India’s education landscape has helped numerous international institutions establish a strong foothold in this lucrative market. With a vision of making global education accessible in India, IME is committed to supporting education businesses in scaling sustainably and achieving long-term success.
By aligning your business goals with these data-led insights and leveraging IME’s expertise, you can confidently navigate the Indian education sector’s challenges and opportunities, ensuring your business is well-positioned for growth.
