Daycare and Creche Business
डे-केयर और क्रेच व्यवसाय · डे-केअर आणि पाळणाघर व्यवसाय
Look after infants and young children of working parents through the day in a safe, child-proofed space with trained caregivers.
Investment
₹4.9 lakh
Profit a month*
₹37,000
- Space
- 800 sq ft
- Staff
- 2 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A daycare looks after children, usually from six months to about ten years, while their parents work: feeding, naps, play, early learning and after-school care for older children. It needs a clean, safe ground-floor space, child-proofed and fitted with cots, mats, toys, a kitchen corner and cameras, plus caregivers in the right ratio to children. It suits someone who is good with children and trusted by parents, often starting in part of their own home. Parents pay monthly, and a child usually stays for years, so income is steady once seats fill. The hard parts are the responsibility for children's safety every minute, finding and keeping caring staff, slow enrolment in the first year, and illness spreading among children.
Skills needed: Patience and experience with young children; a child-care, Montessori or early-childhood qualification for at least the lead caregiver; first aid.
Profit calculator
Change the numbers to match your town1 child-month/day: Child enrolled (per child per month)
Total investment
₹4.89 lakh
Your own money
₹48,854
Subsidy
—
Bank loan
₹4.4 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹90,000 |
| Raw material & packing | −₹10,000 |
| Electricity | −₹2,600 |
| Salaries | −₹18,900 |
| Rent | −₹15,750 |
| Other running costs | −₹5,775 |
| Operating profit | ₹36,975 |
| Loan instalment (EMI) | −₹10,252 |
| You keep each month | ₹26,723 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
- Year 1 shows a loss at the assumed utilisation. Banks look closely at year-1 viability.
Need this for a bank loan?
Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Cots, mattresses, mats, low tables and chairs | ₹80,000 |
| Toys, books, play equipment and learning aids | ₹60,000 |
| Soft flooring, safety gates, corner guards and grills | ₹60,000 |
| CCTV cameras with parent viewing | ₹25,000 |
| Refrigerator, water purifier, induction stove and utensils | ₹40,000 |
| Air conditioner or coolers, fans and inverter | ₹60,000 |
| Signboard, first-aid kit and fire extinguishers | ₹15,000 |
| Machinery & equipment (without add-ons) | ₹3,40,000 |
| Registrations and staff police verification | ₹6,000 |
| Rent deposit | ₹45,000 |
| Painting, child-proofing work and washroom changes | ₹40,000 |
| Leaflets, open-day events and opening offers | ₹15,000 |
| Working capital 10 days of raw material, 0 days of credit to buyers, 1 month of expenses | ₹42,540 |
| Total project cost | ₹4,88,540 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Child enrolled (per child per month) (per child-month) | ₹ |
|---|---|
| Snacks, milk, hygiene supplies and activity material | 500.00 |
| Material cost | 500.00 |
| Selling price | 4500.00 |
| Margin before running costs | 4000.00 (89%) |
Capacity is about 40 children. The ₹4,500 fee is an assumption for a small town; the only published figures found were an institute creche at ₹5,000–8,000 a month. Check fees charged near you.
Space, power and staff
800 sq ft
Rented shop · rent ≈ ₹15,000/month
Small-town rent for a ground-floor flat or bungalow portion with a washroom and some open area. Guidelines on floor area per child differ between sources; check your state's rules.
3 kW, single-phase
Bill ≈ ₹4,000/month at full capacity
2 staff + you
- 1 × Caregiver (the owner is the second; add one for every 10 children under three): ₹10,000
- 1 × Helper / cleaner: ₹8,000
Licences and registrations
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
State or local registration for creches
if applicableWhen: Check before enrolling children · Cost: Varies by state
There is no single central licence for private daycare. Some states and local bodies have their own registration and norms on space, staff ratio and safety. Ask the district women and child development office.
FSSAI registration
if applicableWhen: If you prepare and serve food to children · Cost: ₹100/yr for basic registration
Police verification of all staff
mandatoryWhen: Before a staff member starts · Cost: Small fee
Treat this as compulsory regardless of local rules, along with a written child-protection policy.
Fire safety and building-use compliance
if applicableWhen: Before opening · Cost: Varies
GST registration
if applicableWhen: When fee income crosses the registration limit for services · Cost: Free
The GST treatment of standalone daycare differs from preschool education. Confirm with a CA.
How it works
- Admit the child with health details, allergies, emergency contacts and authorised pick-up persons.
- Follow a daily routine: arrival check, play, meals, naps, activities.
- Keep hygiene strict: handwashing, clean toys, separate bedding.
- Send parents a daily update; report any fall or illness at once.
- Hand over only to authorised persons; record time in and out.
Loan route
Mudra loan (Kishore)
Own money ₹48,854 · Loan ₹4.4 lakh · EMI ≈ ₹10,252
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹73,281 (general, urban) to ₹1.71 lakh (special category, rural). EMI ≈ ₹8,543–₹6,835.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Working couples with infants and toddlers
- Parents of school children needing after-school care
- Single parents
- Companies needing creche tie-ups for employees
Ways to sell
- References from parents
- Housing-society and school parent groups
- Tie-ups with nearby offices, hospitals and factories
- Open days and trial weeks
- Google Business listing
Season: Steady through the year; enrolments rise at the start of the school year and dip in long vacations.
Competition: Preschools with daycare, branded chains, home-based creches and family help. Parents choose on safety, cleanliness and how staff treat their child.
Risks and how to handle them
Injury, illness or harm to a child
Child-proof fully, keep ratios, verify and train staff, use CCTV, keep first aid and a doctor on call.
Slow enrolment in the first year
Start in a smaller space or at home, keep staff matched to enrolment and offer after-school and hourly care.
Caregivers leave and children are unsettled
Pay fairly, keep working hours reasonable and stay personally present.
Infections spreading between children
Insist sick children stay home, sanitise toys daily and keep vaccination records.
Tips from the trade
- Parents visit before enrolling; cleanliness and calm staff decide it.
- A company creche tie-up can fill several seats at once: establishments with 50 or more employees must provide a creche facility under the Maternity Benefit Act.
- After-school care for older children uses the same space in the quiet afternoon hours.
Questions people ask
How many caregivers are needed?+
Published guidance commonly cites one caregiver for every 10 children under three and one for every 20 children aged three to six, plus a helper. Infants need closer attention than these ratios suggest.
Can I run a daycare from home?+
Yes, many begin that way with a few children. The space must still be safe and clean, staff verified, and local registration rules followed.
How much investment is needed to start a daycare and creche business?+
About ₹4.89 lakh for a small unit: ₹3.4 lakh for machinery and equipment, ₹1.06 lakh for set-up costs and ₹42,540 as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a daycare and creche business make per month?+
At 50% of capacity, sales are about ₹90,000 a month and operating profit about ₹36,975 before the loan instalment. After an EMI of about ₹10,252, the owner keeps about ₹26,723 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for daycare and creche?+
With a project cost of about ₹4.89 lakh, the bank loan of about ₹4.4 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹1.71 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for daycare and creche?+
Mandatory: Shop and Establishment registration, Police verification of all staff. Depending on your set-up you may also need: State or local registration for creches, FSSAI registration, Fire safety and building-use compliance, GST registration.
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Sources
- Shriram Finance: how to start a daycare business in India
- IISER Tirupati: day care centre fees
- iPleaders: how to start a creche in India
- Aviaan Accounting: business plan for a daycare facility in India
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.