Following its first expansion out of Europe to Dubai in 2014, French early-years education and nurseries group Babilou Family now operates 1,000 nurseries across 12 countries, including the UAE, India, Singapore, the US and Argentine.
Since its UAE launch in 2015 with four nurseries, the group now operates 23 nurseries in Dubai and Abu Dhabi, through a mixture of green fields (nurseries it built) and acquisitions.
In 2017, for example, the group acquired Dubai’s Blossom Nurseries in its five locations. More recently, in July, Babilou Family acquired Bright Kids Nursery, counting six centres across Abu Dhabi and Al Ain.
There are unique advantages to both green fields and acquisitions, explained Lama Chivi, CEO of Babilou Family, Middle East and India.
“The advantage of green fields is we really get to choose the location. We now know what is popular in terms of locations and with green fields, we have full control of choosing that. You also have of course full control over the end product and execution of how the nursery will look like in terms of property type,” Chivi told Arabian Business.
“Historically, groups that want to grow fast go for an acquisitions model because it’s a quick turnaround. The advantage of acquisition is that the very next day you sign the contract, you have nurseries that are fully operational, making money, already plugged into your P&L,” she continued.
“Personally I like green fields because I get to choose what I want but acquisitions are quick and good boosters for business,” added Chivi.
Acquisitions make more sense than green fields when entering a new market, explained Chivi because, “in a new environment, it is better that you acquire a group that is already familiar with the local regulations and has a base. From there, it is easier to build and grow”.
Lama Chivi, CEO of Babilou Family, Middle East and India.
Babilou Family’s plans for the UAE are not over yet and Chivi said she has signed five locations in the country, which will open next year and is eying opportunities in the region – she did not wish to disclose specific countries.
When it comes to measures related to curbing the spread of coronavirus, and although schools are operating at full capacity, nurseries still have limits on how many students can be in one class.
“Capacity continues to be limited because of the regulations and we cannot have more than fifteen children per classroom with smaller classes having even smaller capacity. So some of our classes are full and we cannot take on more children,” said Chivi.
“A small percentage of parents are still a bit apprehensive about sending their children to nurseries because it is not a pressing need like school and they think that no harm is done if the children spend a few extra months at home,” she continued, adding that she is hopeful regulations will be eased by January.
Follow us on
