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Stoa School, the IIM

challenger, is dead.
What’s next for India’s
altMBAs?

By Nathan Narde

India’s first alternative-MBA programme has hit the pause

button even as the thirst for B-school education keeps
growing. Along the way, it has inspired a wave of new
ventures that keep cropping up

11 Jun 2024 / 16 min read

With an interest in emerging technologies, Nathan writes

about the Indian EV ecosystem.

READ SUMMARY

Four years, 15 cohorts, and roughly 1,500

students later, Stoa School has shut down.
The poster child for alternative business-
school education in India is no longer
accepting new students.

But does this mean it’s the end of the road for
the rest that followed its footsteps? The likes
of Upraised, Invact, Masters’ Union, and Mesa
School of Business. After all, these upstarts
rolled in promising to turn the traditional
Master of Business Administration (MBA)
model—one that caters mostly to those with
enough time and money—on its head.

Not quite.

Mona Gandhi, the founder of Upraised, a

platform zeroed in on product management,
doesn’t buy the altMBA-is-dead narrative.
“With the onset of AI and the upheaval it is
making in the workforces worldwide, the idea
of altMBA is actually more relevant than
ever,” she contended.

In fact, even Stoa—the Bengaluru

headquartered startup that counts names like
Udemy and Maven co-founder Gagan Biyani,
Zerodha’s Nithin Kamath, Cred’s Kunal Shah,
and Zivame’s Richa Kar among its backers—is
not throwing in the towel just yet.

While multiple former employees and

students claimed that the programme has
ended, the startup’s two co-founders Aditya
Kulkarni and Raj Kunkolienkar insisted that it
is “just pressing pause”. “We are re-evaluating
the next steps,” Kulkarni said in a
conversation with The Ken.

Both Stoa and Upraised were born in the

chaos of the Covid-19 pandemic in 2020, an
era that rewrote the rules of education and
work. Gandhi says the altMBA schools filled a
“white space” in the market.

Up until then, India’s B-school ecosystem was

dominated by one- or two-year full-time MBA
programmes. This left most students
scrambling for spots in top institutions like
the Indian Institutes of Management (IIMs)
and the Indian School of Business (ISB),
where tuition fees for the entire course range
from Rs 24 lakh to Rs 42 lakh (US$28,500–
50,000).

But the pre-pandemic startup boom had

already highlighted a glaring skills gap among
the country’s youth, according to Gandhi.
Then along came AltMBAs, flaunting practical
learning and flexibility, challenging the old
playbook of how business management is
taught in the country.

What sets Stoa and the like apart is their

pedagogy—a philosophy that Kulkarni knows
well from one of his previous projects, Leado
(short for “learning by doing”).

For instance, here was Stoa’s pitch: without

quitting your job, enrol in a six-month
bootcamp (or a part-time “StoaMBA”) for Rs
3 lakh (US$3,600) and gain skills and a
network. The idea was to integrate graduates
into the startup ecosystem.

Unlike conventional B-schools that rely

heavily on case studies, altMBA programmes
like Stoa emphasise hands-on, real-world
experiences—visits to factory floors, local
kiranas, and the like. This was attractive: the
first cohort had 60 students, and by the fifth,
enrolment had swelled to 130.

Cut to 2024, and Stoa struggled to fill its

cohorts. “We will not accept any more
students for the foreseeable future. Within 6–
8 weeks, we will announce the next form
factor that Stoa School will shape into,” said
Kulkarni. Even its workforce has shrunk from
35 to just 10, The Ken has learnt.

Yet, Stoa continues to inspire many. Just this

January, Vaibhav Sisinty, founder of micro-
skill learning platform Growthschool,
launched Kairos School of Business.

The demand for a B-school education

continues to outmatch the existing
supply, even if we consider the private
colleges offering MBA programmes
VENKATESH PANCHAPAGESAN, PROFESSOR OF FINANCE AT IIM
BANGALORE

Stoa is halting at a time when demand for

business education is riding high. Last year, a
record 330,000 students registered for the
Common Admission Test (CAT), a 30%
increase from the previous year, vying for
roughly 5,500 seats at the IIMs.

So, what’s the deal with this unravelling? The

answer lies in how the edtech, which last
raised US$1.5 million in a series-A round in
2021, transitioned out of the pandemic. While
new-age B-schools like Masters’ Union and
Mesa School of Business set up brick-and-
mortar campuses, Stoa refused to test
uncharted waters.

See more visual stories

Virtual classrooms given a hard pass

Sixty students of an altMBA programme
occupy a Wework co-working space on
Bannerghatta Road in Bengaluru. They are
part of a one-year programme, offered by
Mesa School of Business, which costs Rs 17.5
lakh (US$21,000) per student.

This very space was almost chosen by Stoa

School in 2023 when it was considering an
offline presence, according to a former
employee. Stoa’s founders ultimately decided
to remain an online-only platform.

The irony is palpable given that Stoa’s mission

was to challenge conventional business
education by building a sense of community
among students. This is also why the decision
led to disengaged batches, per many students
and employees who spoke with The Ken.

In its early days, though, Stoa School

appeared to have struck gold. The pandemic-
induced lockdowns and the shift to remote
work gave students the time and motivation
to deeply engage with their coursework.
Students were self-motivated, recalled a
former employee.

Aside from work and family-plus-

friends, everyone needs a ‘third’
place. Like the coffee shop in
‘Friends’, or the bar in ‘How I Met
Your Mother’, [Stoa] wanted to be that
third place for people trying to break
into the startup world
EX-STOA EMPLOYEE

But this smooth sailing hit rough waters post-

Covid. Stoa’s crucial decision to remain an
online-only platform came only in 2023, “at a
time when live learning faces strong
headwinds and the future of learning is at an
inflexion point,” said Kunkolienkar.

“Going offline was one of the many options

we considered. But there was no founder-fit
for the offline model. Philosophically, we
started off as an alternative to the traditional
B-School, and going offline would have meant
we become one of them.”

While Stoa ceased operations this year, Mesa

School of Business is thriving in its current
cohort—a part of which could be attributed to
the sense of community an offline model
offers.

Powered by titans // In 2020, Masters Union

raised US$36 million from the likes of Arun
Maira (former chairman of Boston Consulting
Group) and Narendra Jadhav (former Rajya
Sabha MP). Mesa secured US$4 million in
April 2023 in a round led by Elevation Capital

It’s not that Stoa ignored the need for in-

person interaction. While it chose to stay
online-only, in 2022, during its fifth cohort, it
introduced a three-day in-person interaction
called the “immersion programme” to build
engagement. This continued until the final
cohort.

These programmes were held at resorts near

the Bengaluru airport, like Clarks Exotica in
Devanahalli. For the first time, Stoa students
were no longer confined to their screens.

“It kicked off on Friday morning and finished

by Sunday evening. We almost hit the ground
running. There were marathon meetings with
people from varied backgrounds,” said a
student from the ninth cohort. “Although
brief, this intense introduction led to some
solid connections.”

The attempts to improve engagement didn’t

stop there. Initially, a Stoa student’s
experience revolved around three
communications platforms: Circle, Zoom, and
Discord. Circle was for academic materials,
Zoom for live weekend lectures, and Discord
for community building and general chats.
Stoa wanted to streamline these platforms
into a single product.

To lead this initiative, it brought in Nilay

Kulkarni, a 22-year-old self-taught
programmer, as Director of Engineering, The
Ken has learnt. Kulkarni, who had previously
developed an electronic rubber mat to help
control crowds and prevent stampedes at
Kumbh Mela (one of the world’s largest
gatherings of pilgrims), was seen as a
prodigious talent.

Stoa invested Rs 1 crore (US$120,000) in

developing this new product, but it never saw
the light of day, according to three former
employees. However, the founders refuted the
claims regarding the investment, purpose, and
outcome of the initiative.

Nonetheless, student engagement eventually

waned.

A lesson in engaging current students,

drawing new ones
The student experience post-pandemic was
markedly different from that of earlier
batches.

“Signing up for Stoa was no different than

getting a gym membership. What you got out
of it was simply determined by how much you
put in,” quipped a former employee.

From the sixth cohort onwards, the return-to-

office work began to eat into the time students
could dedicate to Stoa. What was once a
strong engagement turned into a juggling act
between demanding jobs and the intensive
altMBA curriculum.

A Stoa student’s timetable is demanding, to

say the least. Weekends were packed with
live-lecture sessions running at least four
hours a day, complemented by daily readings
tied to these lectures. To ensure students kept
up, Stoa scheduled check-ins after work
hours.

Initially, these check-ins, intended to discuss

the day’s readings, lasted about an hour. Over
time, however, they were shortened to 30
minutes and eventually held every other day,
shared a former employee.

“It’s a fundamental problem of student

motivation. Maintaining engagement,
especially in an online-only environment, is
incredibly tough,” they added.

Professor Venkatesh of IIM Bangalore is no

stranger to these challenges.

“In addition to teaching young students, I also

run a course for real-estate executives. The
offline version was magical. Participants
entered as competitors but left as
collaborators,” he explained. “Building a sense
of community among any cohort is
incomplete without a physical campus.”

Over time, Stoa’s lack of a campus came back

to bite it, concluded three former employees.
Initially riding a wave of excitement, the
school soon found it difficult to attract even
60 students per cohort, they added.

The post-pandemic world demanded more

than a virtual classroom. And so, the cost to
reel them in zoomed.

Stoa’s performance-marketing cost was

bleeding the business dry, said an employee of
a rival firm. It spent Rs 1.5 lakh (US$1,800)
per student, according to a person close to the
company.

“The figure of Rs 1.2–1.5 lakh (US$1,400–

1,800) to attract customers through
campaigns, and targeted ads is the industry
norm. Till the first quarter of 2023, the split of
attracting customers through organic or
marketing channels was fifty-fifty. The ratio
soon started skewing towards performance
marketing,” said Kulkarni.

It was at this point, the founders realised it

was becoming unsustainable. “The paid
marketing costs must be looked at relative to
our fees and the drop in demand for online
live learning. Without a doubt, this has been
the industry’s Achilles’ heel,” added
Kunkolienkar.

But some of Stoa School’s competitors,

particularly Kairos School of Business, have a
contrasting approach to acquiring customers.

While both offer a six-month online altMBA

programme, Sisinty’s other venture
Growthschool also offers one-day to two-
month skilling programmes. This built-in
pipeline of learners has given Kairos a distinct
edge in customer acquisition. In the last six
months alone, Growthschool has attracted
over a million users.

For Kairos’ first batch of 45 students, 100%

came from Growthschool. In its second batch
of 100 students, 70% were ex-Growthschool
users, with the remaining coming through
referrals from the first cohort.

“When it comes to customer acquisition, we

spend almost nothing on marketing,” said a
Kairos representative. “Kairos feeds on
Growthschool, which serves as a scalable
resource.”

Fundamentally, education faces a

CAC [customer acquisition cost]
problem. To solve this, edtechs rely on
performance-marketing spending,
which becomes unhealthy very
quickly
VAIBHAV SISINTY, FOUNDER, GROWTHSCHOOL & KAIROS SCHOOL OF
BUSINESS.

As Stoa’s students struggled to remain

engaged with the curriculum, another shift
was already underway: their expectations
about employment.

Job guarantees: yay or nay?

While altMBA startups shake things up in
teaching methods, they take a more
conventional route when it comes to
placements. And why not? B-school chatter
almost always circles back to placements.

The immediate employability of students

remains the gold standard for measuring the
success of any MBA programme. Every
February, a familiar tune resonates in
newsrooms nationwide, with top B-schools
heralding their achievements:

“100% placement at”

“X% rise in average salary”
“[Candidate] scores annual highest
package of”

However, the 2023-24 academic session’s

placement season carried a bittersweet
undertone.

The Ken’s highlighted how the commencement

of this year’s placement season resembled a
“bloodbath”, even within ISB and the top
three IIMs. Moreover, a recent Deloitte report
suggests that the sluggishness witnessed in
this year’s placement process may persist into
the next cycle. For instance, salaries for MBA
students in this academic session may dip by
5–10%.

None of India’s premier B-schools explicitly

guarantee employment to their students. It is
tacitly understood that graduating from a B-
school will result in attaining the institution’s
esteemed degree and a lucrative salary
package.

And therein, lies Stoa’s problem.

On one hand, the startup’s proposition is to

equip students with skills and networks that
will help them pave their own path to
employment.

In fact, co-founders Kulkarni, an IIM

Bangalore MBA graduate from the class of
2013, and Kunkolienkar, a Physics graduate
from BITS Pilani, had skipped their respective
placement cycles. “I don’t think young,
competent professionals are ‘things’ to be
placed,” Kulkarni told The Ken. He went on to
work with the Planning Commission on the
National Education Policy and Kunkolienkar
chose to set up an alternative-learning space
called Vidyavriksh.

Shared vision // The other Stoa co-founders

include ex-venture capitalist Manoj Kambadur
and education entrepreneur Sharmad
Kuvelkar

But at the same time, Stoa also adheres to the

conventional practice of presenting statistics
and figures regarding the salaries and
placements of previous cohorts. It boasts a
four-member ‘career team’ tasked with
providing job guidance and facilitating
connections with relevant companies.

“While no official promises of employment

were made to us,” remarked a former Stoa
student, “the presence of a dedicated career
team and statistical data regarding salaries left
me with mixed messages.” This sentiment of
discrepancy in job expectations resonated
with six former employees who spoke with
The Ken.

Stoa, the AltMBA school, uses a conventional B-school script

to speak about salaries (Picture Credit: Olina Banerji/The Ken
& Stoa School website)

In response, Kunkolienkar said, “Anecdotally,

you will find students who felt this. But on a
base of 1,000 students, this is a minor draw.
The industry practice of talking about hero
outcomes and averages does lead to a
mismatch of expectations.”

Although, he accepted that Stoa “should have

done better to avoid this”. The other
mismatch, according to him, was candidates’
preferences for specific titles or remote roles,
which is difficult to manage in a bearish job
market.

While Stoa halted its operations and

downsized its workforce by nearly 70%, all
former employees interviewed by The Ken
expressed profound respect for its four
founders. In an industry overshadowed by the
aggressive marketing tactics of edtechs like
Byju’s, they took pride in associating with an
organisation that refrained from resorting to
hard-selling.

The sun may be setting on Stoa as an

altMBA school, but the altMBA story
will continue to live on. If any of the
four founders set up shop again, I’d
join them in a heartbeat
EX-STOA EMPLOYEE

Meanwhile, Kunkolienkar said, “We spent the

last six months studying the future of work.
Our frame here is to look at it and design
backwards.” Stoa plans to announce its “new
direction” in early August.

For now, though, Stoa’s legacy will serve as a

rallying cry for alternative MBA paths,
challenging institutions like IIMs and ISBs to
keep pace with the changing preferences of
Indian students.

With the demand for B-school education on

the upswing, the likes of Masters’ Union and
Mesa School of Business will have to
persistently refine their edtech-startup pitch
until they hit the sweet spot.

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CREDITS

Written by Nathan Narde

Edited by Sumit Chakraborty

Lede illustration by Kavipriya G

TOPICS

ALTMBA B-SCHOOLS BUSINESS SCHOOL

EXECUTIVE MBA IIM IIM-B IIM-C IIMA ISB

MANAGEMENT MASTERS' UNION MBA SCHOOL

STOA STOA SCHOOL

space

space

space

NATHAN NARDE

Stoa School, the IIM

challenger, is dead. What’s
next for India’s altMBAs?
India’s first alternative-MBA programme has hit
the pause button even as the thirst for B-school
education keeps growing. Along the way, it has
inspired a wave of new ventures that keep
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Stoa School, the IIM challenger, is dead. What’s

next for India’s altMBAs?

Stoa School, the IIM

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