Stoa School, a startup that offered a unique part-time MBA boot camp focused on the startup ecosystem, has made the tough decision to shut down after operating for over four years. The move marks the end of an ambitious venture that sought to provide an affordable and flexible alternative to traditional MBA programs.
The Final Decision After a Pause
Launched in 2020, Stoa quickly garnered attention for its innovative approach to education, offering a six-month, part-time MBA designed specifically for individuals interested in the startup world. However, in June 2024, Stoa’s founder, Raj Kunkolienkar, told Entrackr that the company had “hit the pause button” and was reconsidering its next steps. Despite this temporary halt, the company’s final decision to shut down has now been made.
Kunkolienkar took to LinkedIn to express his regret over the closure. “It has been our privilege to serve over a thousand individuals who have gone on to achieve amazing things across industries and geographies. This was a gut-wrenching and tough decision to make, especially since people expect an education brand to endure,” he shared in a heartfelt post.
A Unique Program With Affordable Pricing
Stoa’s model was unique in many ways, offering an MBA boot camp with a startup-focused curriculum at a fraction of the price of traditional full-time MBA programs. The six-month course was priced around Rs 2.5 lakh, making it a more accessible option for individuals looking to enter the business world without taking on the financial burden of a conventional MBA.
The curriculum was designed to provide students with the tools needed to succeed in the fast-paced and ever-changing startup ecosystem. Subjects such as strategy, general management, branding, economics, and analytical thinking were part of the program, making it comprehensive while staying relevant to the needs of startup professionals.
This approach resonated with a growing community of professionals eager to break into the startup space, as evidenced by Stoa’s ability to attract students from various industries and geographies.
Backed by Big Names, Stoa Faced an Unexpected Decline
Stoa was able to secure seed funding in 2021 from high-profile investors like Nithin Kamath, Kunal Shah, Gagan Biyani, and AngelList. The backing from such well-known figures gave the boot camp a strong foundation in its early years. However, despite the brand’s growth and its unique offering, it faced unexpected challenges that ultimately led to its downfall.
The primary hurdle, according to Kunkolienkar, was a noticeable decline in interest for online live-learning programs in the wake of the pandemic. While demand for digital education spiked during the COVID-19 crisis, the post-pandemic landscape saw a shift in consumer preferences. People were no longer as eager to participate in live, online classes as they once were, and Stoa found itself struggling to adapt.
“We decided against going offline because the economics of that move would have led us to a place we stood against,” Kunkolienkar explained. Despite its strong brand recognition, Stoa was unwilling to pivot its business model in a way that could jeopardize its core values.
The State of the EdTech Sector
Stoa’s closure comes at a time when the edtech sector is experiencing significant changes. While there has been a revival in funding for some edtech startups, others have been absorbed by larger companies or have paused operations altogether. In July 2024, Bluelearn, another online learning platform, shut down despite having raised $4 million.
This pattern of startups struggling to maintain momentum in a changing market is becoming more common. With evolving consumer preferences and the financial realities of running an online education business, many edtech companies are finding it harder to sustain their operations in the long term.
Stoa’s exit is a reminder of the challenges faced by companies in this space, even with strong financial backing and a unique offering. The economic pressures of keeping a startup afloat, combined with shifting consumer expectations, are forces that no business, no matter how promising, can entirely control.
The EdTech Industry’s Transformation
As the education technology sector faces these challenges, there’s a growing trend toward consolidation. Larger companies are absorbing successful startups, while others are being forced to shut down or reimagine their business models.
In Stoa’s case, it appears that a combination of factors—including shifts in demand for online learning, reluctance to transition to offline models, and the broader downturn in the edtech space—led to its closure.
While Stoa’s closure is a loss for those who benefited from its innovative approach to business education, the startup leaves behind a legacy of providing valuable, accessible education to individuals looking to enter the world of startups.
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