Hannah Wasserman9 months ago
Hey Alessandra-- great questions. So Unitus' funds are investment capital-- so HLC used it to expand, hire people, whatever they needed to do--that money doesn't subsidize fees. HLC charges students a super low fee-- about $50 for one year-- paid monthly. The unit costs of running each school shouldn't exceed the unit revenues (from fees), but there is a lot of capital needed upfront to start each school. The hope is that Umesh can keep raising funds in order to rapidly expand. For a business like this, scale is key to making it float. If there is a lack of funding, expansion would need to slow/stop-- it shouldn't harm the current preschools/students.