Through this deal and other future acquisitions in the space, Blackstone is looking to create an education platform with a total investment of $600-700 million (Rs 5,317-6,203 crore), one of the persons said.
“The talks with Globetrotters are at an early stage but the initial conversations are centred around the fund investing $150-200 million,” a second person said. “The final deal contours could change as the negotiations proceed.”
Post acquisition, Blackstone would strive to expand JPIS’s footprint beyond Rajasthan, a person cited above said. The new education platform will be majority owned by Blackstone but the schools will continue to be run by the current management led by founder and chairman Jayshree Periwal and CEO Ayush Periwal, the person said.
Blackstone, which manages assets worth $50 billion in India, has previously made bets in the Indian education sector. The firm had in 2021 bought a controlling stake in edtech startup Simplilearn for $250 million besides investing in offline test prep tutoring company Aakash Educational Services. It subsequently sold the stake to Byju’s in a cash-and-stock deal estimated at $950 million.
The JPIS deal will track Blackstone’s model in the healthcare space while acquiring leading South Indian hospital chains – Hyderabad-based CARE Hospitals and Kerala’s KIMS Health – for a combined $1 billion. Similarly, the PE firm also led the creation of an electric vehicle-focused automotive technology platform in partnership with auto parts maker Sona BLW Precision Forging and Blackstone’s portfolio firm Comstar Automotive Technologies.
Blackstone declined to comment. Email queries to Jayshree Periwal and Ayush Periwal went unanswered.
Investors bet on education
Globetrotters currently runs the flagship JPIS in Jaipur in addition to six pre-schools. Founded in 2011, it was earlier known as Step by Step International School and is affiliated to the International Baccalaureate (IB).
The Periwal family also runs two more schools in Jaipur under an educational society named Step by Step Shiksha Samiti. These schools are not likely to be a part of the deal, one of the persons above said, noting that PE firms are not allowed to directly invest in schools or educational societies in India.
Globetrotters reported operating revenue of Rs 135.2 crore in FY25, a 16% rise, according to latest filings with the Registrar of Companies. Net profit more than doubled to Rs 22.5 crore from Rs 10.7 crore in FY24.
India’s education sector has previously witnessed private equity interest. In 2019, KKR took a controlling stake in preschool operator Eurokids for about $200 million from Gaja Capital. KKR had last year put Eurokids on the block but later abandoned the plan citing potential of a significant upside in the education sector. Homegrown investor Kedaara Capital, along with venture capital firm Peak XV Partners, have stakes in K12 Techno Services, which operates the Orchids International School chain.