Stoa School: Bringing the Alternative MBA to India

The Rise of Alternative Business Education in India

The concept of challenging the conventional MBA program is a frequently encountered pitch within the edtech startup landscape. This is understandable, given the substantial cost of business school and its accessibility primarily to those with both the financial resources and available time for advanced education.

Stoa School: A New Approach to Business Learning

Despite the lack of a definitive success story in this space, Stoa School remains undeterred. Based in Goa, the startup has secured significant funding to provide a high-quality, yet unaccredited, alternative to traditional business education within India’s rapidly expanding startup ecosystem.

The company’s initial funding round, totaling $1.5 million in a pre-seed investment, included contributions from prominent figures such as Udemy and Maven co-founder Gagan Biyani, Better Capital founder Vaibhav Domkundwar, Teachable co-founder Ankur Nagpal, NotBoring Media founder Packy McCormick, Dunce Capital investor John Danner, and Zivame co-founder Richa Kar.

Addressing the Growing Demand for Startup Skills

Co-founder Raj Kunkolienkar notes a growing interest in startups and a desire among individuals to transition from corporate employment. He estimates that the demand for personnel within Indian startups has increased by 40% in the last year.

Aditya Kulkarni, also a co-founder, emphasizes that Stoa School aims to bridge the knowledge gap, providing training in essential startup concepts. Many individuals are unfamiliar with key metrics like CAC (Customer Acquisition Cost), GTM (Go-to-Market strategy), and LTV (Lifetime Value).

The Genesis of Stoa School

Kulkarni explains that the initial idea for Stoa School stemmed from the limited options available to Indian students seeking business education. Opportunities were largely restricted to admission into the Indian School of Business (ISB) or pursuing studies in the United States.

Kunkolienkar had previously operated a Lambda School program in India, but discovered that the existing financial and collection infrastructure wasn’t sufficiently developed to support Income Share Agreements (ISAs) on a large scale.

The StoaMBA Program

Currently, Stoa offers the StoaMBA, a six-month, part-time program. This curriculum integrates technical skills with fundamental business principles for all participants.

The majority of live sessions take place on weekends, utilizing a cohort-based learning model, business case hackathons, and core lectures. Asynchronous learning materials are available throughout the week, with students dedicating approximately 12 hours per week, spread over three weeks each month.

Curriculum Focus and Structure

“Our objective is to provide a comprehensive, 360-degree understanding of various business domains,” states Kunkolienkar. He estimates that 30% of the 24-week program is dedicated to foundational skills, such as data analysis and research methodologies.

The remaining time is allocated to in-depth exploration of specific, high-demand roles, including digital marketing and product strategy.

Current Focus and Pricing

The startup acknowledges that it is not yet at a stage where it can comprehensively address all staffing needs within India’s startup sector. Therefore, its current focus is on training individuals to become versatile generalists in operations and sales.

The StoaMBA program is priced at $3,400, with most students opting for upfront payment. Stoa also has established partnerships to offer EMI-based financing options, allowing students to pay in monthly installments.

The Path to Becoming a True MBA Alternative

To genuinely establish itself as a viable alternative to the traditional MBA, Stoa School must prioritize curriculum quality assurance, demonstrate measurable outcomes, and consistently prove the value of its unaccredited curriculum in improving students’ career prospects.

Deconstructing the Unaccredited Learning Approach

Positioning itself as an initial point of contact for individuals seeking entry-level tech positions may shield Stoa from direct competition with larger organizations. However, this very advantage presents a significant hurdle for the company to overcome.

An analysis of the first two cohorts revealed that only 40 out of 100 participants enrolled in Stoa’s career support services. Of those who did, 38 successfully transitioned into new roles. While the founders emphasize the achievements of those who utilized the services, the fact that 60% did not participate warrants further investigation into underlying market dynamics.

The startup is currently exploring the development of distinct programs tailored to different needs. These include intensive career changes, foundational tech education, and focused skill-building for professionals seeking to enhance their current roles.

“Many applicants to Stoa are seeking clarity regarding their career paths,” Kulkarni explained. “Individuals often desire change, but the initial step involves determining whether that change is truly the right course of action.”

Although positive student testimonials demonstrate the potential of online learning, all bootcamps eventually face the need to demonstrate a tangible return on investment to facilitate growth. Flockjay, a bootcamp focused on assisting displaced workers and job seekers, recently reduced its workforce by half while shifting its focus to a B2B SaaS model.

Lambda School, which has navigated legal challenges, layoffs, and fundraising efforts, has faced criticism for questionable marketing practices concerning its job placement statistics.

Strengthening diversity initiatives is also crucial for Stoa, particularly given its emphasis on accessibility. Currently, the founders estimate that 75% of students are male and 25% are female. Considering the declining representation of women in Indian startups, influenced by factors like maternity leave costs and inherent biases, Stoa has an opportunity to challenge existing norms rather than perpetuate them.

The company’s cap table also appears to be predominantly male, suggesting that increased female representation within the organization could inform more effective strategies. Kulkarni acknowledged the need for improvement, stating that Stoa has offered scholarships to women.

Ultimately, Stoa exemplifies the growing divide between entrepreneurs who champion unaccredited courses and those who believe accreditation is essential for establishing credibility in higher education.

“We function as a six-month degree program, but Indian regulatory bodies are unlikely to recognize such a qualification,” Kunkolienkar stated. “Specific regulations govern accreditation within India.” Stoa is deliberately choosing to avoid the accreditation route to maintain control over its brand, curriculum, and the agility to adapt and innovate rapidly.

Consequently, Stoa’s brand reputation will be paramount to its long-term success. While the company may be able to validate the skills of a substantial number of individuals, the question remains whether employers will value that validation without official regulatory endorsement.

“India is a society that places a high value on credentials,” noted Ankur Nagpal, founder of Vibe Capital and an investor in Stoa. “However, I believe they have a unique opportunity to redefine the purpose and value of an MBA for the entire nation.” He further added that Stoa has effectively built its brand and alumni network, establishing it as an aspirational choice for those in the know.

The success of On Deck and Y Combinator demonstrates the potential to scale “signal as a service,” as both programs offer prestige and community benefits to their graduates. While these accelerators cater to individuals already familiar with the business landscape, Stoa aims to empower those seeking entry into the startup ecosystem, according to its founders.

However, securing a tech job can often be more challenging than launching a company. Stoa’s future, venture-backed endeavors will ideally address this by dismantling traditional barriers to entry and providing practical, real-world education.