Global fund KKR puts Lighthouse on the Block, eyes $1.2 billion valuation

Global fund KKR & Co is all set to sell its education portfolio in India - Lighthouse Learning (formerly Eurokids International). KKR has hired JP Morgan and Avendus to run the sale process, which is expected to be launched by next week, said two sources aware of the development.

KKR, which wanted to exit its 5-year old investment, eyes a valuation of $1-1.2 billion (Rs -10,000 crore). Alpha Asia Holdings II Pte Ltd (investment arm of KKR) holds 94.53% in the holding company Lighthouse Learning, while co-founder & CEO Prajodh Rajan holds the balance 5.47% stake.

Lighthouse, one among the largest educational groups, has seen interests from global educational institutions based out of the Middle East, Europe as well as PE buyout funds, added sources.


The Lighthouse group operates more than 1,350 pre-schools and 45 schools through its owned as well as franchisee model. It has seven core brands - EuroKids, Kangaroo Kids and Mother’s Pet (pre-school segment) and EuroSchool, Billabong High, Centre Point and Heritage Xperiential (K-12 segment).

KKR acquired the controlling stake in EuroKids in 2019 from a consortium led by Indian private equity firm Gaja Capital and Swiss firm Partners Group for about Rs1500 crore.

KKR & Co is considering a sale of its controlling stake in Indian pre-school and early-learning provider EuroKids International for around $1 billion, Bloomberg reported in March.

When contacted, KKR, Prajodh Rajan, JP Morgan, Avendus declined to comment.

The student base of Lighthouse has been increasing for the past few fiscals and currently has a combined student strength of 1.5 lakh as on 31st December 2023 as compared to 1.3 lakh as on March 31, 2023.

"Occupancy has been improving steadily because of strong brand and quality education and infrastructure. This has led to healthy growth in the revenues and the group has already achieved revenues of more than Rs 550 crore till Sept 2023, and is further estimated to reach Rs 1000-1200 crore by year end fiscal 2024 as compared to Rs 688 crore in fiscal 2023," said a February report by Crisil Ratings.

Furthermore, the group is expected to sustain its scale of operations backed by regular capex and increasing student flow in pre-school and healthy occupancy at K-12 segment, it added. The pre-school segment is largely run through the franchisee model, wherein the group generates income from franchise fees, royalty income and sale of welcome kits, while the school segment derives revenue from collection of tuition and other fees.

The company is currently located in Bengaluru, Mumbai Metropolitan Region, Hyderabad, Pune and NCR. The group further has diversified education board schools including CBSE, ICSE, IGCSE and IB board schools.