Stoa School, an edtech startup backed by notable investors like Zerodha co-founder Nithin Kamath, has officially announced its closure.
Founded in 2020, Stoa School was designed to make business education more accessible through its online StoaMBA program, an alternative to traditional MBAs.
However, due to changing market demands and a significant drop in online learning interest post-pandemic, the startup is shutting down after serving over 1,500 students across 15 cohorts.
Stoa School’s Journey and Vision
Stoa School was established during the online education boom, aiming to redefine business learning with a six-month online MBA program.
The StoaMBA was positioned as a high-quality yet affordable option for aspiring business professionals who sought a flexible and cost-effective alternative to traditional business schools.
It attracted substantial attention in the edtech space, raising $1.5 million in seed funding from prominent tech industry figures, including Nithin Kamath and Kunal Shah.
Over four years, the program successfully enrolled hundreds of students, with strong initial demand during the height of the pandemic.
Declining Interest in Online Learning
However, as pandemic restrictions eased and traditional education resumed, online-only programs, like StoaMBA, saw a steep decline in enrollments.
Co-founder Raj Kunkolienkar revealed that despite Stoa School’s efforts to stay committed to its online model to maintain affordability, the demand for online courses continued to dwindle.
Kunkolienkar noted that remaining online was a strategic decision for the startup’s mission, but it ultimately limited growth opportunities as the popularity of online education waned.
Financial Performance and Revenue Growth
Stoa School demonstrated financial growth, with revenue rising from ₹6.13 crore in FY22 to ₹15.92 crore in FY23.
The startup also managed to reduce its losses from ₹78 lakh to ₹43 lakh within the same period.
However, despite these gains, the company struggled to maintain sustainable growth in an increasingly competitive educational environment, ultimately making the decision to close operations.
Challenges for Edtech Startups in India
The shutdown of Stoa School underscores the broader challenges facing edtech companies that rely on online-only models.
While online education saw explosive growth during the pandemic, the return of offline learning and growing competition have made it difficult for many edtech startups to sustain traction.
Stoa School’s closure raises important questions for the future of alternative MBA programs and the viability of online education in a post-pandemic world.
As the Indian edtech sector evolves, startups will need to adapt by exploring hybrid models, offering offline learning options, or finding innovative ways to appeal to shifting consumer preferences.
The story of Stoa School serves as a reminder of the importance of flexibility and adaptability in the dynamic world of edtech.
