MAM
Fintech invests in branded content to reach Gen Z and millennials
Mumbai: Fintech brands are looking at the massive influx of Gen Z and millennial retail investors as an opportunity to create awareness about their products. As awareness about the securities market in India remains comparatively low compared to markets like the US, brands are choosing educational content to create brand recall.
The Indian financial markets saw unprecedented retail participation between April 2020 and January 2021. The securities and exchange board of India (SEBI) reported that 1.4 crore new demat accounts were opened in FY 2020-21. The total number of demat accounts as of March stands at 5.5 crore which means that a fifth of the total demat accounts was opened in the last financial year.
“The capital markets have grown tremendously as well and retail participation has increased. According to Central Depository Services Ltd, (CDSL), in the first six months of the lockdown only, there was also a 20 per cent rise in demat accounts. So, definitely, there is a huge interest and appetite for learning about the financial markets especially given the slowdown in placements and the job market,” said iProspect India, chief executive officer, Rubeena Singh.
There was a surge in interest in all forms of wealth creation, as crores of people, lost their jobs. Unlike before, this time new investors had access to a vast trove of information on stocks, IPOs, mutual funds, cryptocurrencies, and other asset classes. Their decision-making is influenced not by a financial advisor but rather by influencers on YouTube.
“There has been a spike in the volume of content created as the consumer interest in these (fintech) products has increased. However, more video and less text content are being consumed and thus, created. So, brands are looking to create short-form video content in a scalable way that is also cost-efficient. They are also integrating with existing shows, partnering with original content and content creators,” remarked Singh.
A bevy of brands have made it their personal mission to educate these young investors about credit, securities, crypto and help them make smart decisions. This creates a halo effect around the brands, as well as drive their marketing agendas to appear as category leaders in their space. Brands like Upstox, CoinSwitch Kuber, CoinDCX, Cred, and PhonePe are investing in content creation on their own platforms as well as strategic associations with key influencers and media platforms to remain visible.
The banking and finance, mutual fund, insurance, and cryptocurrency players are the most prominent when it comes to media partnerships as they are not only trying to grow their brands but also the entire category.
For example, cryptocurrency platform WazirX partnered with business news channel CNBC TV18 to develop an education programme that lays emphasis on crypto emerging as a mainstream asset class. Similarly, competitor CoinSwitch Kuber partnered with NDTV for a similar content partnership.
“The cryptocurrency market is attracting almost everyone. While almost 50 per cent of the users on the platform are below 28 years of age, we have been witnessing a lot of traction from senior citizens and users above 45 years of age. Investors from smaller cities in India are also getting into crypto. Around 60 per cent of the investors come from Tier II and Tier III cities of India” observed CoinSwitch Kuber, chief business officer, Sharan Nair.
“CoinSwitch Kuber is actively collaborating with local newspapers, media and influencers to educate and inform investors about the new assets. Kuberverse, a free educational resource available on the platform, is also contributing to this goal. Also, the ease of usage of the platform adds to our advantage and attracts users in large numbers,” he added.
Brands are looking at content integrations and partnerships as this educational content will continue to garner views, long after it has been created by the next generation of investors. Singh admits that money being spent on digital is far less than traditional channels, however, that needs to change with the consumption pattern. “Brands are spending about Rs 75 lakh to Rs 1 crore to create educational content. Integration in a video or partnering with one episode of a large IP may cost around Rs 25 lakh to 50 lakh,” she noted.
India’s early education sector is growing fast, making preschool franchises a profitable business option for new entrepreneurs. However, success depends heavily on clear budgeting and realistic financial planning in the first year. From initial setup costs to monthly expenses and expected revenue, every detail matters.
This guide breaks down the year 1 costs and explains how long it typically takes to reach break-even and start generating consistent profit.
Initial Investment Breakdown
The initial investment includes the key costs required to set up the centre and prepare it for admissions. For anyone evaluating a preschool franchise in Chennai, this breakdown helps explain where the money goes at the start and supports better financial planning during the launch stage.
Franchise Fee
The franchise fee is usually the first fixed outlay. It may include onboarding, training support, and access to the operating model. This amount should be separated from the premises budget, since it does not usually cover fit-outs, hiring, or local compliance.
Infrastructure Setup
Infrastructure setup often takes a major share of the budget. Interior work, child-safe flooring, washroom changes, classroom partitions, storage, and entry security can all affect the final figure. Costs may also vary depending on whether the property needs basic modification or a full fit-out.
Furniture & Equipment
This includes classroom seating, storage units, play materials, learning aids, outdoor play items, office furniture, and basic technology. A realistic estimate should separate essential purchases from items that can be added later, so the first-year budget stays more controlled.
Monthly Operating Costs
Monthly operating costs are the regular expenses needed to keep the centre running smoothly after launch. While reviewing the overall playgroups franchise cost, these recurring payments are important because they directly affect cash flow and the time taken to reach stable returns.
Rent
Rent is usually the most predictable recurring cost, but it can create pressure if occupancy grows slowly. A Year 1 plan should include security deposits, possible rent increases, and the risk of low enrolment in the early months.
Staff Salaries
Teacher salaries, helper wages, and administration support form the core of monthly expenditure. Payroll planning should consider the minimum staffing needed to run safely and consistently.
Utilities & Maintenance
Electricity, water, internet, cleaning supplies, repairs, sanitisation, and routine upkeep can add up throughout the year. A play school for young children must also plan for regular wear and tear. A small maintenance buffer can help cover these repeated costs.
Revenue Potential in Year 1
Revenue in the first year depends on how the centre earns from admissions and how quickly enrolment improves. A clear view of fee planning and student strength helps in understanding how soon the business may move towards operating balance.
Fee Structure
Revenue depends on how fees are structured across admission charges, tuition, activity components, and other school-related collections. It is equally important to map when payments are received, since cash flow timing can influence working capital during the first year.
Student Capacity
Student capacity plays a central role in the profit timeline. A centre may open with room for more children than it can initially enrol, so profitability often depends on how quickly seats are filled. Fixed costs begin immediately, while revenue builds gradually, which is why some centres reach monthly break-even earlier than others.
Conclusion
A good year-1 budget for a play school franchise should balance setup expenses, monthly commitments, and the likely pace of admissions. The key issue is not only the opening spend, but how long the centre can operate before enrolment supports recurring costs. When each cost item is mapped clearly, the profit timeline becomes easier to assess, and financial decisions become more measured from the outset.
