Today, we’re delving into the recent closure of Stoa School, an ambitious Indian edtech venture backed by industry stalwarts like Nithin Kamath and Kunal Shah. After 4 years of redefining MBA education, Stoa announced it was shutting down - a move that has sparked widespread discussion about the evolving dynamics of the Edtech sector and the broader startup ecosystem in India.
Launch of Stoa School
Aditya Kulkarni and Raj Kunkolienkar co-founded Stoa School in 2020. Stoa positioned itself as a 6-month MBA boot camp, catering to aspirants disenchanted with traditional MBA structures. With a curriculum tailored to startup ecosystems and practical learning modules, it sought to bridge the gap between theoretical knowledge and actionable skills.
Its pricing, at ₹2.5 lakh ($3,000), was considerably lower than conventional MBAs, making it accessible to a wider audience. The program garnered strong traction, graduating 15 cohorts and impacting over 1,500+ learners.
Stoa distinguished itself through a strong community-driven approach.
Alumni often noted the invaluable professional networks they built and the hands-on expertise they gained. During the pandemic, online education experienced an unprecedented boom, with platforms like Stoa thriving.
Why Did Stoa School Shut Down?
The announcement of Stoa's closure, shared by co-founder Raj Kunkolienkar, highlighted changing market dynamics as a key factor. However, the venture faced mounting challenges as the edtech landscape evolved post-pandemic, where the consumer preference shifted to in-person or classroom learning. This shift, coupled with the financial strain of pivoting to an offline model, rendered the business unsustainable.
Reflections from the Founders
For us to stay true to our original mission, bringing affordable business education to millions, staying online was key. Post-Pandemic there was a perceptible dip in the interest for online live learning due to changing consumer preferences. Despite having built a strong brand, we decided to not to go offline due to economics that we stood against, commented Raj, the co-founder of Stoa.
Aditya, other co-founder of Stoa, too acknowledged Stoa's inability to sustain itself in a changing landscape, despite its successes in building a strong community and curriculum.
Both founders underscored the emotional weight of the decision, with Raj calling it “gut-wrenching.” Both founders emphasized the importance of resilience and adaptability in entrepreneurial journeys, drawing lessons from their four-year adventure.
Which other factors contributed to the downfall?
Market Saturation: The edtech sector, crowded with players like Masters’ Union and Mesa School, saw increasing competition. Stoa’s niche appeal struggled against well-funded and broader-reaching competitors.
Financial Viability: Despite significant revenue growth - 160% year-over-year in FY23 to ₹15.9 crore ($2 million) - the venture’s losses, though reduced, highlighted ongoing struggles with profitability.
Evolving Consumer Preferences: As learners gravitated back to in-person education or hybrid models, demand for fully online courses dwindled.
What Stoa’s Closure Signals for the Edtech Sector?
Stoa’s story is not just about one startup - it mirrors broader trends in the edtech space:
Post-Pandemic Normalization: Many edtech startups scaled rapidly during the pandemic but have since struggled to adapt to declining demand for online learning.
Financial Realities: Sustainable business models in education require significant investments in infrastructure and a clear path to profitability. Stoa’s closure underscores how hard it is to balance affordability, quality, and scalability.
Hybrid is the Future: While fully online models are waning, a hybrid approach i.e. blending online convenience with in-person engagement seems to be the way forward.
Lessons for Entrepreneurs
For startups and founders, Stoa’s journey offers valuable takeaways:
Know When to Pivot: Stoa’s decision to stay purely online, even when offline options seemed viable, was guided by its values but came at a financial cost. Entrepreneurs must strike a balance between vision and pragmatism.
Focus on Building Community: Despite its closure, Stoa’s alumni community remains a testament to its impact. Building a strong network can ensure a brand’s legacy endures even after operations cease.
Adaptability and Agility - Keys to Survival: As markets evolve, so must businesses. Stoa’s inability to pivot in a post-pandemic world highlights the risks of inflexibility.
Closing Thoughts
Stoa’s shutdown is a poignant reminder of the volatile nature of startups. It was an idea that resonated with thousands, challenging traditional norms and inspiring innovation. Yet, as its founders acknowledged, some challenges proved impossible to solve. For the edtech ecosystem, Stoa’s closure leaves behind a rich tapestry of lessons - both cautionary and inspirational.
Folks, that’s it for now.
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