How To Start A Daycare Business In India?

Interested in starting a daycare business? Here's a simple 5 steps guide that will explain the process on how to start a childcare business in india. Read More!

9 Sep,2022 07:45 IST 3308 Views
How To Start A Daycare Business In India?

In Indian metro cities today, most parents are working professionals. In such a case, after the birth of a child, it becomes challenging to dedicate time to childcare while they have to work parallelly. Daycare for a child is a wildly common dilemma for parents as they want to ensure excellent care for their children without worrying while working. Daycare services in India have become a profitable business while providing ideal care to the children and peace of mind to the parents.

If you are a budding entrepreneur and want to start an in-demand and profitable business, you can start a childcare home in India. This blog will help you learn about the steps involved in ‘How to start a daycare at home in India’.

What Is A Daycare?

A daycare or childcare home is where the parents leave their children before going to work and pick them up after their workday has ended. The business owner ensures that the children are taken care of and, in the process, educates and engages them in fun activities.

Such services include looking after the children by ensuring a proper diet and sleep schedule. Furthermore, owners generally open such a childcare business at home to give children a homely feeling when they are not with their parents. The process includes redecorating the area to include child-friendly designs and characters.

How To Start Daycare At Home In India

Starting a daycare business at home includes numerous costs, the biggest being redecorating and promoting the business, making it vital to create a comprehensive daycare business plan. Here are the steps involved in starting a childcare business at home in India:

1. Market Research

Parents prefer the childcare business to be within the vicinity as they do not want to drop their children far from home. Hence, you must conduct extensive market research to determine if working parents in your neighbourhood are facing the same problem and looking for childcare services.

It will also help you identify their requirements for the services needed in that area. Once you know your neighbourhood has potential business prospects, you can move ahead with the business plan.

2. Location

There is a possibility that your neighbourhood doesn’t have enough working professionals with children willing to pay for such services. In such a case, you must scout for an ideal location with potential business prospects while executing market research. You can take a room for rent or redecorate an office space in an area that is easily accessible and child friendly.

3. Organise Funds

Starting a childcare business includes numerous expenses such as rent, redecorating, buying furniture, paying employees’ salaries, and more. However, you may not have enough funds to invest in the childcare business. Hence, it is wise to look towards taking an ideal business loan to raise adequate capital.
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You can take low-interest business loans from reliable lenders, such as IIFL Finance. However, you must choose a loan amount that does not create a financial burden during repayment.

4. Marketing and Advertising

You must market and advertise your childcare business as you may lose out on potential customers (parents) looking for such services to other childcare businesses.

You can market and advertise your business through various social media channels or by posting an advertisement in the newspapers. Marketing and advertising will help you spread the word about your new business and attract potential customers to cater to more children over time.

5. Obtain A License

One of the most critical steps in creating a comprehensive daycare business plan is to procure a daycare license in India. Every business must have a license issued by a relevant government authority to run operations legally. Ensure you register your business and obtain a valid license before starting the childcare business to avoid legal disputes.

Avail Of An Ideal Business Loan For Starting A Childcare Business From IIFL Finance

Starting a childcare business in India requires creating a comprehensive daycare business plan, including effectively planning the fundraising process. IIFL Finance is India’s leading financial services company that provides comprehensive and customised business loans to fulfill your capital requirement.

IIFL Finance business loan offers instant funds up to Rs 30 lakh with a quick disbursal process. The loan for the business application process is entirely online with minimal paperwork. The loan’s interest rate is attractive and affordable to ensure the repayment doesn’t create a financial burden.


Q.1: Is the daycare business suitable for the future in India?
Ans. As per Technavio Reports, the Daycare market in India is projected to develop at a yearly growth rate of 9.57%. It is assumed to scale USD 957.86 million from 2021 to 2026. Check the guide above if you are seeking reasons to start a childcare business.

Q.2: Can I use the loan amount from IIFL Finance business loan to start a daycare business?
Ans: Yes. You can use the loan amount for any purpose, as long as it is related to a business. Hence, you can use the loan amount up to Rs 30 lakh to start a daycare business.

Q.3: What is the Interest rate on IIFL Finance business loans?
Ans: The interest rates on such business loans, which you can use to start a childcare business, start from 11.25%.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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