Venture investing in education in India

Every entrepreneur I meet in the pre school and vocational training space include k-12 schools in their future business plan. One also keeps hearing of business families opening schools and universities across the country. When I recently heard that an entrepreneur who was selling sweets in North India decided to open a university with the spare cash and land available, I asked myself the question "Is this a bubble?"

While there is no argument that education is a big need in the country, I am not sure if there is really an opportunity for a venture capital firm to invest in this sector. The reasons are the following :

1. Teacher dependency. Attracting and retaining talented teaching faculty is not a trivial task. Scaling faculty across locations is even more of a challenge. I remember when I went to school, not evey faculty member was top notch. If a single school cannot maintain quality across faculty, how do you scale this to different classes and geographies?
2. Capital intensity - Purchase of land and/or building/leasing of property can be suck up capital. If the amount of capital is high at the outset, then it defeats the venture capital model of low capital-high return.
3. Regulatory environment - Certain laws prevent investors from investing in the educational institutes. Investors try and work around this by investing in a management company. There is inherent risk in that model as the school that gives the teaching contract to the management company could potentially reneg on that.
4. Lack of gauranteed jobs - Given the plethora of universities and vocational institutes cropping up, there is pressure to fill seats which sometimes dilutes the quality of candidates admitted. Many of these students who graduate cannot get placed as they don't meet the quality criteria of the employer. In the vocational training sector, many jobs don't require formal education/diplomas unlike the western world (ie. plumber, carpenter, courier, etc) and hence make these institutes less viable.