After Four Years, Stoa, an Alternative to Traditional MBA Programmes, Closes Its Doors

After four years of business operations, Stoa, a business that provided an alternative to conventional MBA programmes, has shut down. Co-founder Raj Kunkolienkar made the statement on social media, signalling the end of an endeavour that sought to offer accessible business education to a large audience.

The choice, according to Kunkolienkar, was "gut-wrenching," as the company had first concentrated on online learning in order to reach a greater number of students. But after the pandemic, he observed a drop in online learning participation, which eventually affected their choice not to switch to an offline, physical model. He clarified that Stoa's mission could not be financially supported by an offline strategy.

The Ken Hinted About this Move

This information comes five months after The Ken reported that Stoa was closing. According to Stoa's CEO Aditya Kulkarni at the time, the business was only halting operations and weighing its options for the future. Stoa released "Zeus," an AI-powered enterprise agent platform, in response to this revelation.

Zeus and Stoa were supposed to work together, but no additional Stoa cohorts were launched. In the past, Kunkolienkar has emphasised Zeus's capabilities by saying that it would handle a variety of jobs, such as research, work assignments, and meeting minutes. Zeus's operational state is still unknown, though.

Financial Report Card of Stoa

Kulkarni, Raj Kunkolienkar, and Manoj Kambadur founded Stoa in 2020. During its years of operation, the school served more than 1,500 students in 15 cohorts, making a major effect. With a revenue of INR 15.9 crore (about $1.9 million USD) in fiscal year 2023, the company showed significant financial growth. This is a significant 160.6% increase over the INR 6.1 crore (around $0.7 million USD) earned in the previous fiscal year. Additionally, they were able to cut their losses from INR 78.2 lakh (about $95,000 USD) in FY22 to INR 43.9 lakh (around $53,000 USD) in FY23, a 43.8% reduction.

Prominent investors Nithin Kamath, Kunal Shah, and Raveen Sastry of Myntra had contributed $1.5 million to Stoa's seed fundraising. Other alternative business schools, such as Masters' Union and Mesa School of Business, were competitors of the startup.

Challenges Faced by Online Education Providers

The difficulties experienced by online education providers, especially in the wake of the pandemic, are brought to light by Stoa's closure. Even though the company's revenue increased significantly and its losses decreased, it decided to shut down its operations due to a shift in learning preferences and the financial realities of running an internet business. It's unclear what the future holds for Zeus, the AI platform.

For other educational companies, Stoa's experience serves as a case study, highlighting the necessity of flexibility and meticulous financial planning in a market that is continuously changing. Nonetheless, the company's influence on more than 1500 students is evidence of its early success in offering an alternative route to business school. It is yet unclear how this closure will affect the alternative MBA industry in the long run.

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StartupTalkyNitin Konde